Our Grey Fleet Management Service ensures your drivers using their own vehicles are subject to regular unobtrusive compliance checking as recommended by the Health and Safety at Work Act.
The questions you need to ask are:
Do you really know how many of your employees use their own vehicle to carry out business journeys?
Are they insured for business?
Are their vehicles legally on the road and roadworthy with a current MOT and Vehicle Excise Duty?
Our services aide compliance for an employer that
Causes or permits individuals to drive their own vehicle, not owned or provided by the employer, on their behalf and reimburses the expenses for doing so.
Causes or permits individuals in their employ to drive on their behalf by the provision of cash in lieu of a vehicle to individuals who then drive a privately owned vehicle on behalf of the employer.
Business Use Insurance and MOT Verification
Is provided by highly trained and skilled members of our driver document verification team and the Vehicle and Operator Services Agency (VOSA).
Vehicle Service Tracking & Vehicle Excise Duty
Is delivered by the completion of a self declaration document and provides a history trail of service intervals and mileage. Optional is the inclusion of vehicle excise duty (VED) and driver health question.
For owner drivers also known as Grey Fleet, Licence Bureau can check drivers licence status online so reducing risk, cost and hassle when managing your drivers please contact us today.
Key Features of Grey Fleet Services:
- Confirms appropriate business use insurance
- Driver Alerts ahead of document expiry dates
- Document expiry countdown via web
- History Trail of mileage and service dates
- Web based reporting and management information tool – available 24/7
- System and data security to ISO27001 standard
- Bar coded “Self Declaration Document” to eliminate duplicate driver/vehicle entries
- Flexible driver/vehicle enrolment options
- Fast track same day service
- Dedicated customer service resource
Grey Fleet FAQ’s
What Is Grey Fleet?
‘Grey Fleet’ is a term used to describe the business miles travelled by an employee in their own vehicle. This ‘fleet’ of employee‐owned cars is deemed ‘grey’ as the vehicles in use are in somewhat of a grey area of responsibility for the employer; these responsibilities are often overlooked and misunderstood. In the UK, employees travel more than 12 billion miles in grey fleet vehicles each year at a cost of around £5.5 billion.
Grey Fleet employees spend over 110,000 hours a year driving in cars whose age, condition and fitness for purpose are not controlled by the company. This large number is of concern to many organisations with a grey fleet due to worries over environmental sustainability, financial efficiency and the health and safety of their staff.
What is the law?
Health and Safety – Under the Health and Safety at Work Act 1974, employers have a duty to ensure the health, safety and welfare at work, including whilst driving for work, of their employees. This is relevant in relation to grey fleet vehicles as this statutory duty would apply when employees are undertaking driving for work in their own vehicles. You as an employer are required to ensure that your employees have a safe working environment and this extends to any vehicle driven at work.
You have the same duty of care towards grey fleet drivers as to other drivers, i.e. to ensure that:
- the car is fit for purpose
- the car has a valid MOT (if applicable)
- the car is insured for business use
- the employee has a full and valid driving licence
- Alternative methods of transport have been offered
When private cars are used for business purposes, they must meet or exceed your policy requirements for:
- New Car Assessment Programme (NCAP) star rating for adult occupant safety
- your stated business CO2 emissions levels
- Vehicle age and mileage
What insurance cover do grey fleet drivers need?
The Certificate of Insurance is the document that confirms the level of insurance cover purchased. Read the Certificate and the small print carefully to ensure your cover is as expected. Other documents such as a Schedule or Policy Document are not proof of cover the driver must always produce the Certificate. The Certificate will tell you who is covered – e.g. policyholder and spouse; it will also tell you what circumstances are covered – e.g. Social Domestic and Pleasure, or driving to and from a permanent place of work. In order to be covered for your business travel, the Certificate must specify this – if you are not sure, you must check with your insurer. Also remember the types of journeys conducted that your insurer may deem to be business, for example paying a brief visit to another location to conduct a task for business.
What is an example of a business journey?
Driving to a client site, an airport prior to a business trip or to a railway station for an annual conference, as well as travelling between different work locations are all classed as driving for work and do not form part of the daily journey to work. Non‐work travel and the normal daily commute are classed as social domestic and pleasure commuting. If a vehicle is driven in connection with work beyond simply commuting then it is classed as being used for business use and the correct level of business use insurance cover must be held.
What information do I need to manage?
You must make sure that all your grey fleet vehicles are properly serviced, maintained and insured for business use. Before any privately-owned vehicle is used for company business, its owner must provide:
- A valid insurance certificate including cover for business use
- A signed declaration that the vehicle is fully serviced and maintained to the manufacturer’s standards
- A valid MOT certificate for vehicles more than three years old
- The vehicle has a Vehicle Excise Duty paid and within date.
It is also important to keep good records that relate to your grey fleet. You should keep these documents on file and then request replacements. If they lapse, or if the vehicle is changed, it is the driver’s responsibility to provide updated documentation.
How do I manage “Cash allowance” vs grey fleet owner drivers?
A problem that clients can have is the identification of “cash allowance” vs owner drivers when a business mile is made.
Cash allowance drivers receive a lump sum (perk) instead of a company car. Internally they might not be classified as an owner driver (driving a business mile) because their job role doesn’t always say they are required to drive on business. However on occasions they may periodically jump into their “cash allowance” car and drive to a meeting etc.
Owners drivers are more normally “business mile” drivers as they are employed as business drivers but do not get a cash allowance, these claim mileage etc. each month. These are easier to identify as they are in the system as claiming vehicles expenses because they drive a business mile.
The issue for clients is identifying “cash allowance” drivers who sometimes drive on business but do not always claim mileage etc.
The Licence Bureau Audit of course overcomes this.
Licence Bureau’s grey fleet service will provide all of the above and will help:-
Reduce risk : Keeps you compliant with your legal obligations and helps protect against fines.
Save time and resource : Letting us do the work minimises the hassle in finding alternative resource within your own company.
Gain peace of mind : You can rest assured that this often overlooked area of your responsibilities is covered and you have an audit trail available should you need it.
To control information : Our online portal enables you to be kept fully up-to-date and informed. It also gives you control over the alerts that you want to set up.