When your employees use their own private vehicles for business use it is referred to as a grey fleet.
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When your employees use their own private vehicles for business use it is referred to as a grey fleet. Running a grey fleet may be beneficial for some businesses, however this will depend on how many miles your employees travel on behalf of the business. Employers also need to bear in mind that they still have a duty of care regarding the Health and Safety of their employees when driving for the business.
If employees use their own vehicles the business does not have to purchase vehicles or pay to maintain them, which delivers obvious savings.
If your business has fluctuating transportation needs, having employees use their own vehicles offers greater flexibility. This approach is especially beneficial for businesses operating in remote areas where access to vehicles might be limited.
Employers still have a duty of care regarding the Health and Safety of their employees when driving for the business. The employer will therefore be responsible for checking compliance for the vehicle tax, MOT, insurance cover and drivers' driving licences.
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January 17th, 2025
If you drive for business, understanding HMRC’s mileage rates is essential for claiming fuel and other expenses. These rates, known as Advisory Fuel Rates (AFRs), apply to company cars and vans.
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