Is driving at work is too important to be a ‘grey’ area?

Employers should prevent staff from using their own vehicles for business unless they can give proof that their car is roadworthy and insured.

Speaking at the Office of Government Commerce (OGC) Annual Grey Fleet Conference this week, BVRLA chief executive John Lewis told delegates that they needed to adopt a ‘zero tolerance’ policy on staff who were unable to prove that their vehicle was properly maintained and insured or give details of their driver licence status.

He also warned that some organisations were paying far too much in mileage payment rates, thus giving staff an extra incentive to drive more business miles.

“Many employers are giving mileage payments of 50, 60 or even 70p per mile, which is far above the maximum tax free AMAP rate of 40p per mile.”

The BVRLA chief executive said that many companies were looking at the car running costs produced by the AA and other motoring organisations, which are based on new cars and usually include the cost of funding, insurance and road tax.

“Mileage allowances should be based on fuel, the cost of maintenance and any loss of value through driving extra miles. They should not include these additional costs, which are borne by the owner of a private car regardless of whether they are using it at work,” John Lewis added.

“Our own estimates suggest that a realistic AMAP rate for the average grey fleet car would be more in the range of 20-30p per mile.”

In his presentation John Lewis urged fleet operators to review their organisation’s business travel plans and look at other options such as teleconferencing, public transport and vehicle rental and leasing.

“OGC case studies show that public sector organisations have been able to save hundreds of thousands of pounds, reduce emissions and improve road safety by replacing much of their grey fleet with leased or rental vehicles.”