Staff are motivated by more than their wages, like using a company car especially if it is new. This is also beneficial for business owners, because clearly their company is doing well. However, it's not as easy as just handing over the keys. There are several driver checks that must be carried out as well as paperwork that must be completed.
This article is aimed at first-time business owners providing company cars to their staff. We look at what the business needs to do, starting from deciding to buy or rent insurance and the tax implications. The responsibility of the car lies with the business, not the driver. Here are some tips quoted by Otodiva.com from businessblogshub.com. Come on, let's see!
1. This Is Not Their Car
The vehicle does not belong to the person using it. Responsibility for the car is with the business. Responsibility for everything from car maintenance, including service and maintenance, to insurance, is in the hands of the company, not employees who drive company cars for compensation.
2. Coverage
Either rent out a company car and pay a fee that covers maintenance etc, with a fleet management plan. If your business buys vehicles, get a competitive company auto insurance deal.
3. Tax
Did you know that there will be tax implications for your business when you own a company car? Your business will pay National Insurance on the value of the car at a rate 13,8%.
4. Maintenance
Some drivers will behave a little differently with a company car, i.e. they will be less smart about the maintenance than they will be knowing they will foot the bill for repairs.
For example, the driver may not care much about the cleanliness of the car or how it drives. Mereka lebih cenderung memarkir terlalu dekat dengan mobil lain dan berisiko mengalami penyok di dalamnya karena pintu mobil lain terbuka dan menabrak mobil. Dan juga mereka akan mengambil risiko mengambil mobil jalan off-road ketika mereka pada akhirnya tidak bertanggung jawab untuk itu.
Did you know that up to 25% of all road traffic accidents involve company cars, which may not sound like a bad statistic, until you consider that it's only approx 10% until 15% vehicles on the road which are company-owned vehicles.
5. Have a Written Policy
Any business with any type of fleet of vehicles driven by employees is strongly advised to have a written policy detailing everything from how the vehicles should be maintained from keeping them clean to ensuring they are serviced promptly to fines if the driver is found to be at fault in the event of an accident, whether during working hours or not.
The policy should be short and clear and should be given to every employee who will receive a set of company car keys.
6. Check Driver's License
Although the honor system is noble and admirable, when it comes to the safety of your employees, your vehicle, and other people on the street, it is up to you to check the driver's license and if you have the slightest doubt as to authenticity check the details.
Someone driving your car without a license can do more than just damage your business reputation, but can also lose your fleet. Police crackdowns on uninsured cars and unlicensed drivers and overly lenient bosses may find themselves in legal trouble for not ensuring that their drivers are truly qualified for the job at hand.
7. Invest in Advanced Level Driving Skills
Advanced and defensive driving skills are a great way to ensure that your driver is driving carefully on the road.
For example, look for potential dangers and take preventive measures early and accordingly, with luck, avoid incidents altogether.
A sure way to know that your company car drivers are best equipped to handle cars is to contact a driving school about coming to give a mass lecture to all your drivers and if necessary, pay for their attendance at a defensive driving course. If this is not feasible for your company due to budget constraints, You can offer a bonus to anyone who shows up with their advanced driving certificate.
8. It's Your Responsibility to Provide a Safe Car
One fact that sometimes surprises business owners is that you are responsible for providing safe cars for your employees to drive. Even though they are usually alone when traveling to or from work, You are responsible for driving as part of their job duties.
When your business owns its fleet, it needs to ensure they are fit for purpose and roadworthy. Remember, company car drivers will wear out their tires more quickly due to hard driving, said London-based Iverson Tires.
Read Also, Tips to Prevent Your Car from Being Stolen
