HR Support for Trade Businesses

Company van or car usage

Some of the stories we’ve heard about misuse of company vehicles are the stuff of legend. But using a company vehicle sensibly and within prescribed guidelines is very important. Misuse can lead to invalid insurance, financial loss and reputational damage.

If the employees in your company need a vehicle provided by the business to do their job, then they must be made aware of their responsibilities. We help companies prepare rules and regulations regarding the use of company vehicles for work purposes. A good starting point (most of the time) is to emphasise that employees take the same level of care with company vehicles as they would do if they were their own.

Before driving off

The employee must have a valid driving licence for the type of vehicle they are using and provide a copy so that the Company can be satisfied that they are authorised to drive.

Motoring offences

The employee must notify the company of motoring offences, so the company can advise their insurer. If traffic fines are imposed, these are the responsibility of the employee. If offences committed ultimately lead to a driving ban, the company must be told immediately, and the employment status of the driver may be in jeopardy.

Vehicle running costs

The company is responsible for the running and maintenance of vehicles. The company owes the employee a duty of care in respect of maintenance.

Vehicle modifications

Companies normally don’t allow any modifications, i.e. stickers, tow-bars, mobile phone systems to be made to the vehicle without prior written approval.

Vehicle loss and damage

Loss of, or damage to, the company vehicle should be reported straight away, A report to the police might also be needed.

Standards of driving

An employee must drive within the law, including ensuring that:

• traffic signs and statutory speed limits are observed;
• prohibited areas of the road are avoided;
• the vehicle is sensibly parked and not in breach of any regulations;
• mobile phones are not used whilst driving a company vehicle.

Shared vehicles

If a vehicle is shared between two or more employees, log books or similar must be kept up to date as to who was driving and when. If any driving incidents need investigating, the log book will be the reference source to determine who was driving.

Private use of company vehicles

Employees may not be permitted to use the vehicle for private use and if they are, they should be made aware of the tax implications. Trackers can be fitted to vehicles to ensure the vehicle may be used in connection with company business only. If the employer finds out that a vehicle has been used privately, the penalties can be severe and may include dismissal.

If a company finds out an employee is using the vehicle for private use, they may notify HMRC.