With more UK businesses deploying ‘cash for cars’ company car schemes, there is a growing reliance on grey fleets, according to Europcar Mobility Group UK.
The firm’s latest whitepaper on mobility found that nearly half of decision makers responsible for business travel in UK businesses provide employees with a company car or van. However, nearly a third of companies expect their employees to use their own vehicles for business travel.
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The research revealed that grey fleet usage is common in larger companies with over 500 employees, with 49% of respondents relying on these types of vehicles. Three in 10 companies with 10-25 employees also let staff use their own vehicles for business travel.
In particular, the research suggests that the changing rules surrounding Benefit in Kind tax are impacting the control employers have over the mobility solutions their employees use. Nearly a third of businesses said that up to a quarter of staff have opted for ‘cash for car’, with 26-50% of the workforce choosing this option for 23% of companies.
“The high usage of grey fleet vehicles underlines the importance of monitoring employee travel”, said Gary Smith, managing director of Europcar Mobility Group UK. “Yet worryingly, nearly one in five respondents said they do not monitor employee travel at all. Only 45% of businesses monitor fuel expenses and this only rises to 56% for businesses with over 500 employees.
“The real concern is that the majority of the smallest companies don’t monitor employee travel at all. Combined with firms using less than accurate methods, such as self-reporting, this means employers could be failing on their duty of care to drivers.”
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By GlobalDataEuropcar noted that the average grey fleet vehicle is older than a company car, meaning they are generally worse for the environment and emissions targets. They are also more prone to breakdowns, creating a major drain on a business’s resources. In addition, without an easy way to collect data, employers cannot know whether a vehicle has a valid MOT, tax, insurance or when it was last serviced, raising safety concerns.
“It is clear we are at a turning point in the challenges faced by businesses to keep employees on the road – firms not only need to consider their duty of care responsibilities but the growing government pressure to reduce emissions,” concluded Smith.
