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Company car policy: get it into gear

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Fleet managers need to provide company car users with clear rules about the allocation and use of a vehicle owned by the employer. This could also include light commercial vans and larger vehicles.

Compact Law is offering AccountingWEB readers a formal policy document, drawn up by lawyers to help employers manage their vehicles and ensure that they are not used incorrectly or for private use, unless specified. This policy is essential for keeping transport costs down.

The clauses in this agreement include:

  • Employer can specify make and model of vehicle to be used by an employee.
  • Employer can select when to replace any vehicle.
  • Duty to notify organisation if driving status changes.
  • Ability to nominate a third party to use a company car.
  • Comprehensive coverage of tax and insurance issues.
  • Coverage of road toll charges and congestion charges, if introduced in the future.
  • Vehicle maintenance covered by the employer and everyday maintenance by the employee.
  • Comprehensive coverage of fuel costs and payment.
  • Detailed driving policy, including use, (where applicable) of tachographs, security systems and speed limiters.
  • Action to be taken in the event of an accident, breakdown or injury.
  • Fines and criminal proceedings.
  • Return of vehicle and keys on termination of employment contract.

The completed document consists of approximately 5 pages.

The online process asks for some basic information before generating the policy document.

The policy document costs just £35.00 (inc. VAT) and can be accessed from the Employment Law area of the Compact Law page on AccountingWEB.


For more resources and articles on company cars, see our Company Car TaxZone.

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