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Formulation and Implementation of a Car Policy

Formulation and Implementation of a Car Policy. Dennis Dugen Andrew Houston Nigel Grainger. Formulation and Implementation of a Car Policy. Dennis Dugen Andrew Houston Nigel Grainger Introduction We will cover some key points to consider when producing a policy for your whole fleet.

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Formulation and Implementation of a Car Policy

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  1. Formulation and Implementation of a Car Policy Dennis Dugen Andrew Houston Nigel Grainger

  2. Formulation and Implementation of a Car Policy Dennis Dugen Andrew Houston Nigel Grainger Introduction We will cover some key points to consider when producing a policy for your whole fleet. The session is 10.30 to 11.00 am with time for Q & As

  3. Car Policy - Essentials

  4. Car Policy - Essentials What your policy should cover – Company Cars; Cash Allowance; Grey Fleet; Private Use, Vans, Bikes

  5. Car Policy - Essentials • What your policy should cover – • Company Cars; Cash Allowance; Grey Fleet; Private Use, Vans, Bikes • Who gets a company car • Allocation rules; Car levels

  6. Car Policy - Essentials • What your policy should cover – • Company Cars; Cash Allowance; Grey Fleet; Private Use, Vans, Bikes • Who gets a company car • Allocation rules; Car levels • Issues for Company Car Driverscover – • For example – Licence checks - Mandated

  7. Car Policy - Essentials • What your policy should cover – • Company Cars; Cash Allowance; Grey Fleet; Private Use • Who gets a company car • Allocation rules; Car levels • Issues for Company Car Driverscover – • For example – Licence checks- Mandated • Reimbursement of fuel: • Expenses; Fuel Rates; Claiming other travel costs; purchasing rules; fuel cards; mis-fuelling

  8. Car Policy - Essentials • Cash Allowance Drivers - • Licence & Insurance + MOT / Maintenance / Tax / Choice

  9. Car Policy - Essentials • Cash Allowance Drivers - • Licence & Insurance + MOT / Maintenance / Tax / Choice • Use of a company vehicle – • Private Use; Driving Abroad; Availability; Breakdowns

  10. Car Policy - Essentials • Cash Allowance Drivers - • Licence & Insurance + MOT / Maintenance / Tax / Choice • Use of a company vehicle – • Private Use; Driving Abroad; Availability; Breakdowns • Driver’s Responsibilities for the car – • Car Care; Car Safety; Car Cleanliness, Technology

  11. Car Policy - Essentials • Cash Allowance Drivers - • Licence & Insurance + MOT / Maintenance / Tax / Choice • Use of a company vehicle – • Private Use; Driving Abroad; Availability; Breakdowns • Driver’s Responsibilities for the car – • Car Care; Car Safety; Car Cleanliness, Technology • Driver’s Duties of Company Car Ownership – • Driver Fines; Driver Incidents; Driver Conduct Rules

  12. Car Policy - Specifics

  13. Car Policy - Specifics • What constitutes business travel • Any trip undertaken under instruction from or in the course of business: for example - Need drivers in sales; Inter-site travel, (can even be commuting to a different site from normal place of work); Trips related to training courses and events; Organising the Christmas party (but not going to it, unless compulsory - say lawyers!)

  14. Car Policy - Specifics • What constitutes business travel • Any trip undertaken under instruction from or in the course of business: for example - Need drivers in sales; Inter-site travel, (can even be commuting to a different site from normal place of work); Trips related to training courses and events; Organising the Christmas party (but not going to it, unless compulsory - say lawyers!) • Cash Allowance/Salary Sacrifice Issues • Manage the Car Choice – fit for purpose; CO2 limits; Duty of Care applies; Check Servicing, MOT & Insurance

  15. Car Policy - Specifics • Adherence to the Law • Define key issues in the policy – for example: no smoking in any car provided for business; a valid licence (note: no paper counterpart soon); mobile phone usage Road Rage Seat Belts and Child Restraints

  16. Car Policy - Specifics • Adherence to the Law • Define key issues in the policy – for example: no smoking in any car provided for business; a valid licence (note: no paper counterpart soon); mobile phone usage Road Rage Seat Belts and Child Restraint • Company Insurance Issues - • Accident/Incident; • Emergency Assistance; • Restrictions to cover – Class 3 CM reqd? • Certificates; • MID Reporting

  17. Car Policy - Compliance

  18. Car Policy - Compliance • Damage - • Policy needs to specify how damage costs will be handled • Recharge to employee; in full or part; • Define any appeal process

  19. Car Policy - Compliance • Damage - • Policy needs to specify how damage costs will be handled • Recharge to employee; in full or part; • Define any appeal process • Personal Taxation: Company car drivers - • How BIK tax is calculated; escalation % • What drivers might pay; • Car choice impact on taxation;

  20. Car Policy - Compliance • Damage - • Policy needs to specify how damage costs will be handled • Recharge to employee; in full or part; • Define any appeal process • Personal Taxation: Company car drivers - • How BIK tax is calculated; escalation % • What drivers might pay; • Car choice impact on taxation; • Corporate Tax Considerations

  21. Car Policy - Compliance • Must be a living document.

  22. Car Policy - Compliance • Must be a living document. • Evidence that employees have read and understood it

  23. Car Policy - Compliance • Must be a living document. • Evidence that employees have read and understood it – signed return! • Evidence of compliance – • If you ban the use of mobile phones whilst driving, DO NOT make a call to an employee who is driving. • Document Quiz

  24. Formulation and Implementation of a Car Policy Summary

  25. Formulation and Implementation of a Car Policy Summary All that applies to owned/company leased cars applies to any car used for business

  26. Formulation and Implementation of a Car Policy Summary All that applies to owned/company leased cars applies to any car used for business Imagine you are standing in a court after a serious accident explaining how you managed this driver and their car – that is when you will need a formal & agreed Policy

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