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GREY FLEET: Where now for grey fleet?
Date: 24 September 2013
In addition to these more radical, recent moves, chairman of the Association of Car Fleet Operators, Damian James, points out that there has also been a more gradual lessening of grey fleet across the public sector: "There has been a gradual reduction over the years of mileage completed and payments given out. So there has been a general contracting of grey fleet anyway, some of which has been a result of budget cuts and people being made redundant. There's also a greater emphasis on journey planning - people are being questioned more about why they're making a particular journey, and they're having to justify it."
James also points out that there are not only cost benefits but also time and admin savings in sticking to the default mileage rate, rather than using a more expensive one.
"It's more viable for whoever's paying the rate," he says. "Everything over 45p is then taxable for the individual, so you have a P11D on it. You're paying a tax on that benefit. In terms of admin it makes it easier because they don't have to have a P11D."
Even if you know grey fleet isn't your best option, there is still a catch to ditching it in favour of other methods. If you're going down the rental/pool car route then there's an admin and accessibility element that goes with it. Your employees won't have their car keys in their pockets - they'll have to book a car in or reserve one from a limited fleet, which brings its fair share of organisational and managerial issues with it.
