When it comes to running a business, there is plenty of responsibility. You have your employers to think about along with the general day to day running of the business itself. It’s no easy task, which is why it’s worth delegating the important jobs that can sometimes be overlooked. As part of your business model, you may have seen the benefit of adding a fleet of company cars for specific employees to use. This might be for the purpose of their job. It may be a perk of working for the company. Or you may allow your employees to use it for both business and personal use. Whatever the reason may be, there is a lot that both you and your employee need to take into consideration when they get the benefit of a company vehicle.
The Employer
The employer has a duty of care to make sure the employee knows exactly what is required of them when it comes to the use of their company vehicle. They must adhere to any guidelines that have been set. They need to be in possession of a driving license. Most companies require that they don’t have any road convictions such as speeding fines and offences.
The employer has a duty of care to provide a roadworthy vehicle. That means a valid MOT if applicable and a car that has been serviced and maintained regularly. This is where you, who is in charge of the business, may overlook certain things like van insurance, due to the sheer length of your responsibilities when it comes to taking care of your fleet. With all the duty of care and compliance that goes with it, then it’s a good idea to seek some help from a professional company.
The Employee
Just like the employer has a duty of care to provide roadworthy and insured vehicles. The employee has a responsibility as well. This isn’t just meaning a valid driving licence and being an insurable person. This is about your duty of care when it comes to the use of the vehicle. Road risk management doesn’t just mean your employer is offering a car suitable for the road, but more on how you drive the vehicle and take care of it.
The employee has a responsibility to use the vehicle correctly. So no speeding on motorways, or leaving the vehicle in a mess. As much as this is a benefit to you, the car still doesn’t belong to you. If you abuse the company car system, you run the risk of losing the car use. This could have an effect on your job. You may also need to think about the company mileage, and how having an app such as TripLog can help you to stay on track with business mileage. This is especially important if your employer wants mileage to be accounted for in terms of refunding fuel costs or managing the vehicle value and depreciation.
An employer should inform the government of any tax issues or changes; it’s also your responsibility to let them know you now have use of a company car. This does affect your tax and if you don’t let them know you could end up with a hefty bill.
A company car can be a benefit to both an employer and an employee. The employer puts the tools in place and the employee gets the job done. Good road risk management is essential to both parts.
