IF you are an employer who has employees driving as part of their business duties, what is the best option for their motoring needs?
Especially given that each individual is likely to cover different mileages and have differing business driving patterns?
Is it best to give the employee a company car or a car allowance? Or perhaps even use public transport?
The Decision Tree
Fleet Evolution have produced a simple yet comprehensive guide for businesses called the “Decision Tree” – helping employers come to making an informed decision by following some easy steps.
Director of Fleet Evolution, Andy Leech, said: “Our unique Decision Tree will help businesses of any size see what options are available to them and what will be the most cost effective route for their business car needs.
“Our transparent and honest guide follows our company ethos of giving businesses fair advice that is designed to save them money over rather than focusing on maximising our own profits.
“All business circumstances are different, but we find many companies can relate to situations within our Decision Tree; we group car users based on average business mileage and provide advice based on usage.”
Fleet Evolution’s Decision Tree basics
Scenario 1. Occasional journey employees
It is seldom recommended that they should drive their own car. By doing so, it could cost their employers 45 pence per mile in mileage allowance and also expose them to road risk and duty of care complications.
For occasional journeys, Fleet Evolution recommend public transport, car hire or even a salary sacrifice car scheme, which has low administration implications and it is also cost neutral.
Scenario 2. Regular business journeys that accumulate less than 500 miles per month
This type of vehicle usage can have some potential to make significant savings for both the employer and the employee. A cash allowance could be offered to employees, but Fleet Evolution recommend that this is changed to a salary sacrifice scheme in order that employers meet their duty of care.
In some instances, a salary sacrifice car is often recommended, or a pool car which can sometimes be funded from the employers’ NI savings on salary sacrifice cars. In some cases where EVs have been chosen, this has resulted in just the cost of the battery charge!
Scenario 3. Employees who drive between 5000 – 10000 business miles per annum
Solution: Fleet Evolution recommend a salary sacrifice car with a cash allowance.
