Important information for business owners
We find that most businesses do not consider themselves to have a fleet. What they generally have in most cases is something called a ‘Grey Fleet’. A Grey Fleet vehicle is a vehicle that is not owned or leased by the company, but the vehicle is driven by an employee on behalf of the business. Typically the vehicle is a car and is owned by the employee.
The employee is usually paid a fixed rate for any business related journey (not commuting) and in most cases that is 40p for the first 10,000 miles and 25p after that. These figures are the tax free amounts allowed by HMRC. Most business owners feel that this arrangement absolves them from all responsibility relating to the vehicle, in this they are wrong.
The use of a grey fleet can be of benefit to both the business and the driver, but the management of these vehicle has always being very difficult. The difference is that, where the vehicle is owed by the company the company has total control of servicing, insurance, road tax, licensing and mileage. Where the vehicle is the employee own it becomes a lot more tricky.
During last week I think I may have found the solution to the risk management of ‘grey fleet’ vehicles, I will give you more information over the coming week or so when I have confirmed my initial opinions. If I am right it will finally provide businesses with the evidence they need to protect themselves from prosecution under Corporate Manslaughter Legislation and many other pieces of legislation.
Nigel Grainger
Senior Consultant
Fleet Risk Consultants