Whilst Pool Cars aren’t as common as they once were, today many businesses utilising these to avoid delving into the complexities of Grey Fleet. By utilising our short-term car leases and subscriptions, you not only save money against daily rental prices but you also avoid the commitment of 2/3 year leases.
What is a Pool Car?
A pool car is a car of van that is not driven by one particular employee. Therefore, it is not classed as a company car, this is very important when it comes to HMRC and your tax affairs.
A Company Pool Car must be kept at the business premises overnight and not at an employees home, unless that employee will be going somewhere other than his usual place of work for business reasons.
It is important to introduce a pool car company policy in the workplace so that all employees understand the rights and wrongs of a Pool Car to avoid HMRC classing this vehicle as a traditional company car.
We would highly recommend keeping the following information:
Who is driving the car
Keep a log book in the car that is completed by the drivers of the vehicle. It is ideal if you include the drivers name, the date, the start and end mileages, the reason for travel and if any fuel was required.
The Vehicle's routes
Keep proof that the vehicle has been used for essential business purposes only. Major fleet providers can provide software to do this, but a simple spreadsheet will suffice. (See GPS Below)
Whilst not mandatory, it is a good idea to invest in a tracker (or ask Cocoon to fit one). This way you can see if the log book in the car is being kept up to date and to avoid any discrepancies in mileage.
Make sure that the vehicle is insured at all times and it covers the type of work that you offer. An insurance broker is usually your best option to set-up a fleet or mini-fleet policy for your business.
It is important to make sure that the vehicle is taxed so that the drivers are legally driving the car or van. When you take a vehicle from Cocoon Vehicles, we do this for every vehicle we offer on our short-term fleet.
Maintenance and Servicing
It is the employers responsibility to ensure that the vehicle is maintained and serviced, whislt maintenance comes included with our car subscription service, it is still the responsibility of the hirer to ensure that the vehicle is serviced to manufacturer guidelines. Make sure you have all documents in the vehicle ready for inspection.
What are the benefits of a Company Pool Car?
Here are a few benefits of how a company pool car can benefit a business:
Benefit it Kind (BIK) Tax
With a traditional company car, the employee has to pay a Benefit in Kind tax for the access of a vehicle for business and personal uses. The company also has to contribute additional monies towards the emolyees national insurance contributions.
With a pool car, because HMRC does not consider car-sharing or car-pooling as a perk due to the vehicle only being made available for business use, employees are not liable for the Benefit in Kind payments.
Cheaper to run
On top of the tax benefits above, it is far easier and more affordable to obtain a pool car for the use by mulitple employees than separate vehicles for each of the team.
Maintenance and fuel costs will also be lower as the cars will not be doing the additional mileage for personal use and it also free’s up HR in doing mileage claims.
Using the short-term vehicles from Cocoon, will also allow you to keep your vehicles up-to-date, gaining access to the latest fuel efficient or electric vehicles available in the marketplace.
Avoids Grey Fleets
If you allow your employees to ustilise their personal cars for business use, the company becomes responsible for ensuring that the vehicle is roadworthy and insured correctly for business use. This can be a major headache for most companies to manage.
Available to all employees
Pool cars are available for all employees to utilise (so long as they have the correct driving licence and they are insured). Trying to organise transport to an event or a meeting, is a thing of the past. Just allow the booking of one of your Pool Cars for the employee to use, get them to log their journey and away they go. Much simpler than providing each employee with a company car.
How can Cocoon Vehicles Help?
We have been providing Pool Cars since our incorporation in 2007, whether your a small business to a major international brand, our team can help.
The other major benefit is utilising our short-term solutions which can save time and hassle factor when comparing it to leasing a car for 2/3 years or even purchasing. It allows you to increase or decrease your fleet extremely quickly.
Let’s look at the available options available:
Pool Car Subscriptions
If you like flexible vehicle solutions, then a vehicle subscription for your car pool needs is ideal. We require just a 1-month commitment, but you can unlock some great savings by committing to our ‘minimum qualifying period’ from just 90 days.
The majority of the vehicles come with maintenance, servicing, tyre provision, road tax, warranty and 24hr breakdown assistance.
If we have a vehicle in physcial stock, we can usually deliver this to your company premises in 3-5 working days (when a credit line is in place).
Off-hires require just 5 working days notice, you can return the vehicle to the de-fleet centre for free or we can collect for a nominal charge. If you are swapping cars the same day, we don’t charge for collection of the returning vehicle.
Short-Term Car Leases for Pool Cars
Our short-term car leases do require some level of commitment, with our most popular lenght being 6-months and 12-month car leases. These are fixed contracts that cannot be reduced or extended.
All vehicles are brand new and will be delivered in 1-3 weeks when showing as in-stock. They come with a generous mileage allowance along with the manufacturers warranty and 24hr breakdown assistance.
Whilst not as flexible as Car Subscriptions, they do offer cheaper monthly rentals.
We don’t just concentrate on cars, we also offer vans, crew vans, Luton’s and pickup trucks all available to be utilised on your pool car fleet.
For more information on how we can help you with Pool Cars for your business, please speak to the team on 01332 290173 or complete the ENQUIRY FORM below.