FAQ / Vehicle Cash Allowance Optimisation

How can I administer all the different elements of Vehicle Cash Allowance?

How can I administer all the different elements of Vehicle Cash Allowance? Either you or your fleet manager can become familiar with the legal obligations relating to the Health and Safety at Work Act 1974, the 2007 Corporate Manslaughter and the Corporate Homicide Act. You will then need to create a schedule for ensuring that all compliance obligations are met with all staff that use their own vehicles for business purposes. Depending on the size and nature of your business and the extent of your fleet, this may or may not be practical.

These five tips are a good starting point for managing your grey fleet:

  1. Support your drivers so that they make an informed choice about taking cash instead of a car. Demonstrate to them exactly what each choice means in terms of their tax obligations.
  2. Check driving licences. This is a legal requirement. The paper counterpart was abolished on 8th June 2015, so all checks are now accessed via the DVLA website.
  3. Restrict choices by excluding soft tops or old cars. Whilst staff may be resistant to any policy that comes across as heavy handed, it is fair enough to insist that the vehicle has four doors, four seats and is a professional colour! It also improves safety and minimises the risk of theft.
  4. Invest in a robust mileage tracking tool, preferably with a payroll reporting facility.
  5. Tighten up the management of a mixed fleet. Many companies offer a casual version of this by offering car allowances and company cars alongside each other, but a specialist mixed fleet provider will manage a mixed fleet in the most tax-efficient way, and take care of all the mile-logging, road risks and general administration tasks.

By using a grey fleet management expert such as Toomey Leasing Group, your business will have legal experts who understand and follow all changes in legislation, and know how to effectively implement the associated requirements with minimum disruption to your business. We provide Service Level Agreements (SLAs) to provide you with absolute piece of mind that all legalities are taken care of, leaving you to focus on your core business activities.

To learn more about our grey fleet management related services, give us a call on 0800 091 4252.