Why employees shouldn't use their own cars for business

The company car park probably has a variety of different vehicles - some might look like they belong in a rap video, others may be reminiscent of Dell Boy’s three-wheeler.

The UK scrappage scheme in 2009 might have prevented most people from owning the latter, but it is still recommended that staff don’t use their own cars for business purposes.

This recommendation comes from The British Vehicle Leasing and Rental Association (BVRLA) whose latest report explores ‘grey fleet’ use.

According to the BVRLA, the average grey fleet car is 8.2 years old (not quite a Robin Reliant) and produces twice the emissions of a London bus (8,156 tonnes of NOx).

The study shows that some 12 billion business miles are driven each year on Britain’s roads by employee-owned cars, costing organisations more than £5.5billion a year in mileage claims and car allowances. Furthermore, in the private sector alone, grey fleet vehicles emit 3.2million tonnes of CO2 and 7,038 tonnes of NOx.

The problem is that there is no incentive for employees to drive less miles and reduce their emissions says Gerry Keaney, Chief Executive of the BVRLA. And so, he has called on the government to tackle these issues in its transport strategy; “the Approved Mileage Allowance Payments (AMAP) system used for reimbursing grey fleet drivers is the only part of the motoring tax regime that provides no incentive to drive fewer business miles or use cleaner vehicles. This blind spot is wasting taxpayer money, costing businesses millions of pounds, damaging our environment and making our roads more dangerous.”

The added dangers are indicated by further findings from the report that suggest that grey fleet vehicles account for a significant proportion of the £2.7billion costs associated with work-related road accidents.

The report recommends that businesses should mandate car rental for any work-related vehicle journey over 55 miles and that employees driving more than 10,000 miles a year should lease a company car. Other recommendations include using car clubs, video-conferencing and incentives to encourage the use of public transport or cycling.