The Grey Fleet word gets battered around the fleet offices of many businesses and it can prove quite a headache. But as the employer, you are responsible for making sure your employees vehicles are in a good state of repair, when they use it for business use.
What is Grey Fleet?
Grey fleet is the use of an employee’s car for business travel. To be classed as Grey Fleet, this means that the vehicle is privately owned by the employee or employee’s spouse, leased, rented or as part of an employee ownership scheme.
When the employee drives this car on behalf of your business, this falls under the company’s grey fleet and therefore, you are responsible.
Managing Grey Fleets
Running a fleet of company vehicles can be time consuming and expensive, it is usually cheaper for an employer to reimburse their employees business mileage. But because the vehicles are not owned by the employer, it is very difficult to ensure that they are maintained on a regular basis, meet legla requirements such as insurance (with business use) and road & safety requirements.
The Health and Saftey at Work Act 1974 is applicable to all Grey Fleet vehicles, meaning the employer is responsible at all times.
Communication between the employer and employee is neccessary to ensure that the vehicles being used for business purposes are fit for purpose.
Owning a "Grey Fleet" Car
As an employee who owns their own car that is used for business purposes, you’ve got to consider some key points.
Whilst you may be expected to use your own vehicle for business use, your employer should reimburse you for the mileage driven, which is usually paid through an expenses process or when you get your salary.
The car is still your responsibility and in your name.
Employers are responsible for ensuring the vehicle you use, whether owned outright, leased or subscribed, is in a good enough state of repair for the use of business.
Everything else is the employees responsibility. As the employee, you also need to make sure that you have the correct insurance cover. Keep all documentation for your vehicle including maintenance records.
Remove the headaches of Grey Fleets
Grey fleets can be difficult to manage, but so can company car schemes. But it may be worth looking at alternatives such as Salary Sacrifice Schemes.
Salary Sacrifice Schemes
We offer a flexible approach to your traditional salary sacrifice schemes. We utilise our car subscription fleet for your employees to drive around in a shiny new car, which comes complete with maintenance, breakdown assistance, manufacturers warranty and road fund licence.
All you need to do is have an arrangement between the employer and employee and deduct the amount from the Salary, this saves both parties National Insurance and the employee saves on their income tax.
In return they get a flexible car that the company pays for but will not get stuck with, should the employee leave.