For Immediate Release                                                                       6 October 2008

SMALL COMPANIES CAN REDUCE COSTS THROUGH STRUCTURED VEHICLE MANAGEMENT SAYS COMPARECONTRACTHIRE.COM

Most small companies may not even dream of running a structured company car and van policy as they may only have a few vehicles. Often vehicle purchase and in-life management are dealt with by an individual as part of a much wider job function and therefore doesn’t always get the focus and attention it deserves.

Comparecontracthire.com is the new vehicle contract hire price comparison website which has been set up specifically to help SMEs source company cars and vans more efficiently. Managing Director Robert Wastell believes adding process and structure to buying, running and disposing of company cars and vans can help reduce cost and make sure employers and employees meet their legal obligations. He has posted a company vehicle fleet policy guide document on his website (www.comparecontracthire.com) which is free for SMEs to download.

There are 12 key points to consider:

  1. Company policy statement – what is the purpose of the company vehicle and who is eligible for one. What choice do they have and how do they choose their vehicle? (usually by list price or monthly contract hire rental for consistency)
  2. Who does what? – What are the responsibilities of the driver and employer in the provision and upkeep of the car and making sure this is reflected in the employee’s contract or employer’s HR handbook if you have one.
  3. Guidelines for using company cars and vans – how should they be used, what are the considerations around Duty of Care i.e. can vans be taken home and if so used for private use? What happens when a driver has an accident and what are the servicing arrangements with the vehicle; these are just some of the considerations in this section.
  4. Who gets a company vehicle? – What level of employee gets offered a car or van and how much can they spend each month on a typical contract hire agreement. Can they add some of their own money to trade their choice up and what is the policy for the company signing off an order with the contract hire supplier? Insurance and driving licence checking are also a consideration here, particularly when you run commercial vehicles where drivers have limitations on what they can drive.
  5. Fuel policy – Do employees have to pay for their own fuel and claim it back or are they issued with fuel cards? Can they claim for their private mileage as well and if they have to claim fuel back, do they need to present a VAT receipt.
  6. Driver responsibilities – What is the policy when a driver breaks down? Parking and speeding fines are other key areas which need clarification on who pays for them. Using mobile phones whilst on company business is a key area within a company’s Duty of Care responsibilities.
  7. Insurance – Who is insured to drive a company vehicle and what happens if a driver’s personal effects or company laptop are stolen if a car/van is broken into.
  8. Taxation – Each car and some van drivers will have to pay Benefit in Kind tax on their vehicle. If you provide free fuel, this will also have to be declared as part of an annual employee tax return. The HM Revenue and Customs website will tell you more about tax and how it works on company vehicles.
  9. Disposal of company vehicles – Informing the driver of the condition a company expects the vehicle to be returned is important to protect a company from any charges potentially made by the leasing supplier.
  10. Health and Safety/Environmental awareness – What is your Health and Safety policy and how do car and van drivers adhere to this? Helping drivers reduce accidents, ensuring drivers have regular eye tests and what hours would a driver normally expect to be at the wheel for are all considerations in this area.
  11. Company vehicle withdrawal and termination of employment – defining areas where a company considers withdrawing the driver’s vehicle or fuel card should leave the employee in no doubt where they stand when they join the company.
  12. Driver acceptance form – getting a driver to sign a form which accepts all of the conditions on their vehicle before you hand it over is often a wise move.

ends…

Editors’ note:
www.comparecontracthire.com aims to inform smaller companies about how contract hire works and its financial and administrative benefits. The site also offers guidance and useful links to other areas associated with running a vehicle including fuel costs, CO2, daily rental, accident management, company vehicle policy and Duty of Care.

For further information call Steve Carman at Nobull Communications on 01628 526208.