Business miles increase and more drivers opt for company car schemes

More than three-quarters (78%) of fleet decision-makers have reported an increase in the amount of business miles being driven, new research suggests.

The survey by Alphabet GB of smaller fleet operators also revealed that many employees are relying on their own car for work-related journeys, with almost two-thirds (63%) of fleet managers reporting a hike in the number of staff driving privately-owned vehicles for business - the so-called grey fleet.

However, with the growing trend towards car usage and favourable benefit-in-kind (BIK) tax rates set to remain for lower-emission vehicles, drivers are seeking greater support from their employers to facilitate travel and business miles.

In fact, two-thirds (66%) of small fleets have seen an upsurge in employees opting into company car schemes.

A further 67% said demand for salary sacrifice car schemes has also risen across their business.

Worryingly, there also appears to be a lack understanding when it comes to their duty of care requirements – with more than half (59%) stating that uncertainty around this topic is impacting the running of their fleet.

Carol Burgess, corporate and SME manager at Alphabet GB, said: “All companies are required to manage health and safety in the workplace and make sure policies and safeguards are in place to minimise risk.

“When vehicles are used for business, they are considered places of work. Consequently, employers are responsible for ensuring they are fit for purpose and properly maintained, taxed, and MOT’d.

“They also need to check that employees have business use insurance cover; hold a valid licence for the category of vehicle being driven; and receive appropriate training.

“A robust and proactive driver risk management strategy is key to helping fleet managers identify and mitigate potential risks.”

Any uncertainty around duty of care could result in businesses failing to take appropriate action to safeguard their drivers and members of the public, which can lead to significant legal, financial, and reputational consequences, says Alphabet.

Employers are legally required to manage the risks and hazards associated with business travel and ensure vehicles are safe to drive at all times. This responsibility applies to any vehicle being driven for occupational purposes, regardless of whether it’s a company car, rental, or privately-owned vehicle.

If grey fleet vehicles aren’t properly maintained, businesses could be held responsible for any accidents or damages that occur when employees are driving for work.

It’s therefore imperative that fleet managers are aware of the implications private vehicle use has on their business, says Alphabet. Good record-keeping is vital and regular checks should form part of the risk management process to help ensure smaller fleets remain compliant and employees complete business trips in a safe and responsible manner.

“Unfortunately, our research tells us that the majority of managers responsible for SME and smaller corporate fleets don’t always feel confident when it comes to their understanding of duty of care,” continued Burgess.

“If a company requires its employees to use vehicles for business purposes, even if this is simply driving to an offsite meeting in their own private car, duty of care obligations must be prioritised and met.

“It doesn’t matter if a company has hundreds of employees or a handful, managers need to carefully consider how duty of care affects their fleet and take necessary steps to manage the risks associated with occupational driving.”