What are employer's responsibilities?
The difference between Kilometre Reimbursement and company cars is the way the vehicle is funded, however the employer's duty of care remains the same. As an employer you need to consider several factors, including:
- A company's mileage allowance policy requires appropriate management. Any benefit offered to an employee using a vehicle rented by or owned by the company must also be offered to employees receiving the kilometre allowance.
- Any benefit offered to an employee using a vehicle leased by or owned by the company must also be offered to employees benefiting from the kilometre allowance.
- Defining this policy can take a long time, and the responsibility often lies with a fleet manager or HR department.
The end result is that very few companies manage their kilometre allowance drivers adequately.
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What are alternatives to Kilometre Reimbursement usage?
A good solution to Kilometre Reimbursement management can be the use of rental vehicles and car sharing.
Daily rental and car share vehicles are typically newer, cleaner and safer than private vehicles; this means they are more efficient, have reduced emissions, and comply with health and safety regulations. In addition, the rental company has responsibility for taxation, MOTs and maintenance of the vehicles, rather than that being an added administrative task for your company.
Objectives you should consider when reviewing alternative solutions:
- CO2 emissions & kilometrre reimbursement reduction
- Reduced cost of travel
- Compliance with duty of care policies
- Encouraging use of public/shared transport & active travel
- Improving employee efficiency & benefits
What are the benefits to using alternative solutions?
The main benefits of effectively managing your Kilometre Reimbursement policy through the use of rental vehicles and car sharing are:
- Cost control
- Rental vehicles are typically newer, cleaner and safer
- Reduction in vehicle emissions
- Health and safety of staff
- Increased vehicle choice
- Reduced risk to the employer
- Reduced parking costs
- Improved environmental credentials
