Grey fleet vehicles are becoming increasingly common on UK roads, as more and more employers are incentivising staff to use their own car for business travel. In fact latest figures from the BVRLA (the trade body for the vehicle rental and leasing sector) put the number of grey fleet vehicles in circulation at an all-time high. Estimating that 14 million of the UK’s cars now constitute grey fleet use – 40% of all road users in Britain.
Here Bluedrop Services outline the reasons you should be aware of and dealing with your company’s grey fleet.
What is a grey fleet vehicle?
A grey fleet vehicle is a business vehicle that is privately owned, rather than company owned. Meaning the vehicle has been directly purchased or rented by an employee, rather than leased through their employer. There is often confusion between grey fleet cars and company cars. But the main distinction comes down to whom the legally registered owner of the vehicle is.
Why have a grey fleet?
Grey fleets are popular among employers who need road vehicles for their business operations but don’t want to invest in an-house company fleet. In most grey fleet models employees are simply reimbursed for their business mileage as an incentive to use their own car for business travel. Thereby relinquishing the business owner from any expenditure, besides fuel reimbursement costs.
What’s the problem with grey fleets?
Although a grey fleet business model might seem like the perfect transportation solution, in actual fact grey fleets are becoming an increasing problem on Britain’s roads. And that is something that’s falling back on employers, not employees, to address.
11 million of the total 14 million grey fleet vehicles in circulation are private sector. And together with totalling more than £2.7 billion in work-related accidents, grey fleets are costing employers almost £5 billion in mileage every year in the UK. Equating to 3.5 million tonnes of CO2 emissions.
It’s for reasons such as this that the grey fleet model is now coming under fire. With organisations operating a grey fleet ultimately being held accountable. And with prosecutions and penalties on the table, it’s important to know where you stand, and your liability, in terms of your grey fleet operation.
Your responsibility as a grey fleet manager
As a grey fleet operator the buck falls with you to ensure your drivers, and their respective road vehicles, are both fit for purpose and as part of corporate social responsibility, are responsibly looking at carbon reduction. This responsibility also includes having adequate insurance to cover business use, a valid driving license, and checks to ensure the vehicle itself is roadworthy.
That’s why it’s so important for UK businesses compensating their employees for private vehicle use to have a grey fleet management system in place. One that directly addresses your duty of care as an employer to your employees, but also demonstrates proactive measures to reduce your grey fleet’s environmental impact, and improve efficiency.
Track your grey fleet’s mileage and usage
One of the first steps to improving grey fleet efficiency is to get a handle on how, when, and why the vehicle is being used. Something that predictive analytics technology can assist with.
Predictive analytics is a process of capturing data, and using the data to gain insight about your grey fleet’s behaviour. Such as apps that measure mileage, speed, and breaking, to dash cams which record a driver’s journey. All of which can help you paint a clearer picture of your grey fleet’s performance.
Using a combination of one or more of these devices won’t only help you understand your fleet’s usage day to day. The other great thing about these types of systems is they allow you to verify expense claims for mileage. As well as provide a record of the driver’s actions and reactions on the road.
Establish company guidelines that govern grey fleet usage
Once you have a better understanding of your grey fleet’s behaviour you can instate a company policy that governs the terms of vehicle usage. All of which will help you run your fleet more efficiently, reducing overheads, and your organisation’s environmental impact.
These frameworks should explicitly outline acceptable vehicle usage. Giving clear parameters for what is considered reimbursable business mileage. You should try to reduce vehicle output by encouraging employees to consider alternative means to driving. Such as whether it’s more economical to conduct a meeting in-house, or remotely via conference call. As well as putting in measures that discourage car journeys within a specific boundary.
You can also investigate car-pooling initiatives to reduce one driver journeys, as well as bringing in sign-off procedures that require advanced approval for journeys made beyond a certain distance. All of which should discourage casual vehicle use, thereby reducing expense claims, and your fleet’s cumulative CO2 output.
Introduce checks to assess your drivers and their vehicle
One of the biggest misconceptions about grey fleets is that the registered vehicle owner will be liable for any insurance claims, penalties and/or prosecutions that result from an accident on the road. This is simply not true.
If an employee has an accident that results in loss of life, while undertaking business travel on your behalf, your organisation could be held accountable under the Corporate Manslaughter and Corporate Homicide Act 2007. Even if that employee was traveling in his or her own vehicle.
Employers ultimately have a duty of care to adhere to. And when you’re asking your staff to make business trips as part of their job role, that duty of care extends to making sure they, and their vehicle, are fit for purpose. So it’s imperative to introduce regular driving licence checks for all employees using their own car for business travel. As well as to ensure the vehicle is roadworthy and properly insured for business use. The latter of which can be verified through MOT certificates, and policy documents, together with vehicle spot checks.
Insurance – the grey area of grey fleet management
Insurance is one of the biggest grey areas when it comes to employee-owned vehicles being driven for business purposes. With very few employers taking proactive measures to ensure their drivers have adequate cover, or assuming that the responsibility to insure the vehicle ultimately falls on the owner.
A vast proportion of employees believe that having “commuting” cited in their insurance policy is enough to cover them for business travel. However in around 20% of drivers, this isn’t the case, and ultimately it’s the employer’s responsibility to check that the correct level of business cover is in effect.
Vehicle insurance covering business use actually falls into three distinct categories:
Covers business travel to locations and sites beyond the employee’s usual place of work. But excludes commercial use (such as the delivery of goods).
Also excludes commercial use but allows a second named person to drive the vehicle for business travel, in addition to the primary vehicle owner.
Allows for two named drivers on the policy and also covers commercial vehicle use, such as door-to-door sales, or the delivery of light goods.
In the majority of cases a privately owned or rented vehicle will not automatically be covered for the three classes of business use outlined above. And some insurance policies will specifically exclude business use of the vehicle as standard. For this reason it’s vital to check the wording of policy documents carefully, and adjust the level of cover to include appropriate business travel requirements.
Seek professional grey fleet insurance advice
As an employer it’s your responsibility to ensure your grey fleet drivers are adequately insured for the journeys they’re making. Failure to conduct checks to this effect could result in liability on your part, should a claim result. So it’s not in a business’s best interest to turn a blind eye.
If in doubt a fleet insurance broker, such as Bluedrop Services, should be able to assist you in understanding the level of cover your employees require, and finding a competitive policy. Only by consulting an expert can you have the peace of mind that your business operations are protected should the worst happen.
Present IPO-Info is out there right here.Firm name with included beginning & ending date,Submitted on which and the place these Primary Share Lottery Result might be Printed.Lottery Outcome published with Bank / Department Code,Apart from NRB(Common Public),Mutual Fund, Non – Resident Bangladeshi (NRB), Distribution of Refund Share buying and selling date and so forth. IForex present its clients with a novel buying and selling platform customized to offer purchasers an distinctive trading experience and volume exercise. Brand owner Oriental GT was among the first suppliers of Chinese tobacco and liquor to the Middle East and Africa journey retail markets. MFL has the ownership / perpetual license of its manufacturers, It is going to give freedom of name extensions to new classes like including sportswear, footwear, bags & accessories merchandise and new geographies.
There may be so many online trading brokers in market and giving good providers in Kuwait Area. We’re a strong managerial group in a continuing enlargement, leader both within the national and international market whose essential goal is to be the house specialist ,Cosmetics and private necessities giving options to all form of necessities. Anyone eager to see images of caps, contributing with native beer caps or buying and selling a few caps is free to contact me, a reply is all the time assured!
IBONS COMMON TRADING LLC envisions itself as an organization which leads the patron retail sector via its unique strengths ,Selectiveness, Reliability, Quality Assurance, Competitive Pricing. The honest additionally supplied special reductions on newest brands of desktops, laptops, mobile phones, i-pods, DVDs, Pen Drives, and many other newest electronic gadgets.
Conducting and managing international enterprise operations is extra complicated than enterprise home enterprise Differences in the nationality of parties involved, comparatively less mobility of things of production, customer heterogeneity across markets, variations in enterprise practices and political systems, diverse business rules and insurance policies, use of various currencies are the key facets that differentiate international businesses from domestic enterprise. The business loan rates of interest aren’t topic to a spike in interest rates when the business owner is late paying a medical bill. A subsequent purchaser from get together to contract of which specific efficiency is claimed is a essential party to a swimsuit to enforce particular performance. Verify with DTI in case you can transfer the identify of your father’s business to your name.
What’s extra, if one companion defrauds the observe or purchasers, fairly apart from the financial loss and the damage to the reputation of the apply, different companions can’t expel that associate unless it’s expressly agreed that there is a proper of expulsion. A creditor is entitled below Part 6 of the Registration of Business Act5 1956 to depend on the particulars kept within the Enterprise Registry to ascertain whether or not a person has remained a companion of a firm at the commencement of a go well with.
If the business goes under and takes somebody’s income with it, they are nonetheless accountable for the debt service funds. My business accomplice and i lately established a consulting firm and we now have an external accountant. Thus this principle is just not confined in its operation to variations prior to the breach of the contract. No Companion or group of Partners may have any ownership curiosity in such Partnership Property in entire or partly.
An LLP association protects all partners from private legal responsibility and doesn’t require one general partner to take full duty for the business. If the business succeeds, household and mates might seek to take an ownership share. A brand new alternative has arisen for an experienced HR Business Accomplice to join a dynamic and unique organisation based in North Oxfordshire.
First things first, before planning to have a business, collect information on how you will set up a enterprise that complying with the law and so that you can have an idea on how will you keep away from the don’ts in business. Thanks in part to your comments, which completely illustrated our experience, and your recommendation on methods to rescind, we have decided to cancel the contract immediately.
Sustaining the books is a very powerful part of your accounting system. This consciousness may lead to opportunities in specialist areas involved with providing steering to managers, similar to administration consultancy or enterprise journalism. Accounting specialists are aware of the essential ideas of accounting, so they’re able to tackle larger duty for accounting duties than other administrative professionals.
A friend was (and still is) on unemployment for over a year, he maxed his bank cards whereas taking cash advances out to pay for his car payment and insurance. I’ve worked with shoppers who, before my creation of a decent accounting system, have been at the hours of darkness on a lot of important areas. The HNC programme is year one of many Management and Skilled Accounting BA (Hons) Diploma.
Bagaimana bisa melakukaan evaluation (pemeriksaan) pajak jika tidak menguasai price accounting which is bagian terpenting dari aktivitas usaha manufaktur. Income, nonetheless, shouldn’t be recorded, no matter how certain it is from a enterprise level Usually Accepted Accounting Ideas: A Overview fifty three of view, till the product is actually delivered or the service is definitely supplied.
I’m a robust advovcate against credit score checks on staff and/or potential staff. I am utilizing Peachtree Quantum 2011 as my accounting software program just so that I am going to ensure of the results. The charges charged usually are not similar to audit engagements or management fees charged to large firms. The recovery course of have to be outlined in a mixed result of restoration actions (telephone calls, electronic mail, mail return receipt, intervention of the gross sales consultant.. and so on) and agreed between the restoration service or accounting and gross sales managers.
My credit score is okay, but I still don’t assume it should matter with reference to someone being able to do the job. When I had my business I had a bank card terminal (quite giant machine) and a merchant account. The client needs are continuously reviewed and credit score traces could be adjusted accordingly. This information explores credit and Money administration in small and medium sized enterprises and includes recommendation on maximising cash inflows, managing cash outflows, extending credit and cash circulate forecasting.
A partnership is when two or extra people or companies do business collectively in partnership. As well as, except the brand new businesses can have two distinct parts – a restaurant and separate café, an internet improvement and graphic design agency, or a cleansing and ironing enterprise for example- it may be difficult to agree on the dividing strains and buyer share. If your small business companion is just not keen on a proposal to be bought out and the enterprise is ready to proceed in different directions, it could be doable to divide the agency’s interests.
Examine your business’ partnership settlement – it could have restrictions and conditions on the sale. A Business Partnership occurs when two or more individuals handle and function a business and intend to take action for an extended time frame. A partnership occurs when 2 or more individuals come collectively to kind a business unit with the only goal of constructing revenue.
Since you are personally liable, a creditor can make a declare in opposition to your personal property in addition to your enterprise belongings so as to fulfill any debts. If the enterprise incurs lots of debt and fails, the owner will nonetheless be liable for those debts even when the enterprise not exists. However, typically, such relationships can bitter, the business can fail, and the parties can determine to go their separate ways.
A person can be part of a partnership at the start or after the partnership has been working. Get an MSc in Computer Science from one of many tuition free universities in Europe. The failure of 1 franchise may lead to a foul reputation of the entire business. In 2012 Lucy Clark of St Albans gained the University of Hertfordshire’s prestigious annual Enterprise Ideas Challenge for her cupcake enterprise, netting her a cool £10,000 in prize money and worldwide publicity for free by the award.
On this video you will be taught two crimson flags to be careful for for those who’re contemplating a business partnership along with your pal. DETAILS: Blisset was a accomplice in a agency the place a proposal was mooted to appoint one of many partner’s son as a co-supervisor of the agency. With out an agreement clarifying the position, the latter is fraught with problem and different partners haven’t any say in who it’s sold to. However, if an outsider buys the charges and the base practice remains to be going, clients could migrate back to it and the earnings multiple paid shall be decrease.