With the added pressure on business finances and potential time-consuming administration of company fleets it’s important to consider employer and employee needs when deciding who may need a company car or need to use their own vehicle. As a leading fleet management company, Fleet Evolution have produced comprehensive guide for businesses, including a simple-to-use decision tree which objectively helps business owners to come to an informed conclusion.
Andrew Leech, Director of Fleet Evolution said, “We are here to provide as much assistance as possible for companies with the need for a company fleet, and our wealth of expertise in the field is second to none. We give businesses fair and honest advice, putting exceptional customer service ahead of prioritising profits for our own benefit. This is why we have created the exclusive Fleet Evolution decision tree, so businesses can see transparently which option will provide the most cost effective solution for them.
“Every business circumstance is different, but we find many companies can relate to situations within this tree. Loosely we group car users into groups based on average business mileage.”
For employees doing an occasional journey, perhaps a training course or annual meeting, the experts at Fleet Evolution claim very seldom recommend asking them to driver their own car as an ideal option. Not only could it cost employers 45 pence per mile in petrol claims but it could also expose them to occupational road risk complications; having to ensure that both employee and employer are ‘fit for the purpose’ of the journey. Fleet Evolution advise employers to consider public transport, a hire car or even a salary sacrifice car scheme which could be ideal as it’s cost neutral and low admin. If an employee is doing a 100 mile round trip they could possibly reclaim £45 in petrol, and in this case a hire car could be cheaper.
Regular business journeys which accumulate less than 500 miles per month have the potential to yield significant savings for both the employer and member of staff. For this type of employee, a salary sacrifice car should be considered as a top choice in terms of efficiency and cost effectiveness. It may also be worth looking at a pool car, which in some cases Fleet Evolution can fund from the employers’ NI savings on salary sacrifice cars. In the past the company has provided electric cars to customers purely from these savings, making pool car usage completely free with the exception of a few pence for a battery charge! A cash allowance could also be offered to employees, but Fleet Evolution would recommend this is converted to a salary sacrifice car in order to ensure employers meet their duty of care.
For staff that regularly accrue more than 5,000 but less than 10,000 business miles per annum, the logical choice is a salary sacrifice car with a cash allowance. When employees edge closer to 10,000 miles a company car can also be considered, as both will meet the required duty of care standard and both will guarantee controlled costs for the employer.
Fleet Evolution advise that any member of staff driving over 10,000 business miles per annum should definitely be entitled to a company car. Fleet Evolution can administer any desired number of vehicles and ensure they are fit for the purpose, working individually with businesses to ensure their needs are met. It works with businesses across the country, with a workforce ranging from 15 – 10,000, to set them up with the most cost efficient company fleets.
For more information visit http://www.fleetevolution.com.
About Fleet Evolution
Fleet Evolution design and implement salary sacrifice car schemes which enable employees to save money on motoring costs at no cost to the employer. It works with businesses from 15 to 10,000 employees delivering schemes that are low admin with maximum reward.
Andrew Leech: email [email protected] or Tel 08448 483 455.