MALCOLM Noyle, managing director of Noyle Fleet Solutions looks at the issue of private cars on business use  – often referred to as the ‘grey fleet’.

HERE’S a challenge for you. Think about your business: can you identify anyone who works for you who uses their own car for business use, someone you give a mileage rate to, or perhaps a cash allowance?

You do? Now, having thought of that person, go and have a chat with the manager responsible for your company’s vehicles if you’re a bigger business – or maybe yourself as the business owner responsible for your company’s business cars – and ask for the following:

• Copy of driving licence – less than 12 months old
• Proof of the right class of business insurance
• Copy of the latest MOT or service information
• Confirmation that the vehicle is fit for purpose for your company
• Driver training as assessment records

Got them? If not try the finance director – or maybe the book keeper in a smaller enterprise – who is possibly paying the going rate for every business mile under AMAPs. Do they have them?

I am sorry to say the likelihood is that most, if not all of these elements will not be in place for your grey business car drivers; if they are, congratulations to you. Because you will be doing far more than the majority of UK businesses.

The HMRC estimates that there are some 4.5m ‘grey fleet’ cars – private cars on business use – being operated in the UK today.

Grey fleet: what does it mean?

So-called ‘grey fleet’ are cars that belong to your employee but used for business mileage for your company. Every mile covered in this way comes under your company’s duty of care. It does not matter if the car is sourced under a cash allowance or paid AMAP rates, the impact is the same. These vehicles and drivers are the responsibility of the company – your business.

According to the Health & Safety Executive, “The Health and Safety at Work Act 1974 imposes on employers a statutory duty to ensure, so far as is reasonably practicable the health, safety and welfare at work of their employees. This is relevant in relation to ‘Grey Fleet’ as this statutory duty would apply when employees are undertaking driving for work.

Considering what you should be doing to protect your company is not easy as it is not defined exactly. But here are some helpful tips:

For the Driver

• Does the driver hold a current and valid licence – what endorsements?
• Is the driver insured for business use; is it the correct class and valid?
• Does the driver have breakdown recovery?
• How much business mileage is this driver doing on your behalf?

For the cars

• Is the vehicle fit for purpose?
• Has it got a valid MOT?
• Is it legal – tyres and so on?
• Has it got a current tax disc?
• Is it being maintained?

This list is not exhaustive but represents a reasonable approach to managing these private cars on business use – the ‘grey’ cars. In addition, you might want to consider the following as good business practice:

• Do you have a business car policy for your company?
• Do you reimburse at AMAP rates or more?
• Do you attempt to switch high mileage ‘grey’ drivers to company cars?
• Do you offer alternative options such as daily rental hire cars or public transport?
• Do you identify accidents occurring when staff driver their own cars on business?
• Do you provide any training and advice to drivers who use their own cars on business?

Further information

Confused by some of the terminology – such as AMAPs? For a fuller explanation – and the most up to date rates, click on the link Tax: Business mileage rates for using a private car