Simon C

Got a bit of a problem, I'm hoping some of you can shed light on.

At work some of us recieve a car allowance, the company have just sent round some info saying amongst other things

These are now classed as company cars
The comp in the event of an accident will laise with your insurance company to determine fault and if its you give a disaplinary!


Would your insuance company talk to your employer? I am under the impression they wouldn't.

As for them being company cars, would this mean you would have to make your own car available to anyone?

Cheers.

Scooby Snacks 23

Interesting one that.

If they are a private car (i.e. owned by you and not the company) then I don't know how they can consider them to be a company car. Fair enough, they may be (by definition) paying towards them. but if they gave you £300p/m and you were leasing one for £600p/m, it's hardly fair is it.

Your company won't be able to liaise with your (private) insurance on the grounds of data protection.

I'm guessing this may be to do with insurance and the corporate manslaughter issues??

hodgy0_2

I have had a company car allowance for the past 10 years and the rules have defiantly got tighter

i.e. I now have to provide my company with photocopies of my insurance (and it must have work cover) tax disk, and driving licence every year – I did not have to do this 5 years ago

I suppose it may come down to whats in you contract

Scooby Snacks 23

Something else I forgot to mention in my earlier post - tax.

A company car is a benefit in kind so - there's no tax applied on the monthly cost on the car, so there's a corresponding P11D charge based on emmissions and the list price of the car. That means the company will have to stop taxing you on your allowance and then submitting P11D to the Revenue based on your own private car - how do they undertake the list price for older cars?? Emissions won't be known for older cars either.

The more I think about it, the more I think they can't do it.

Tidgy

for a personal car a company has to legaly show they make sure a car and person is road legal.

easiest way photocopy of insurance, tax, MOT and drivers license.

as far as a car allowance being a company car, i don't think thats so, although guess it would depend on the terms of your contract. Check what the small print says and if in doubt just ask

Boro

iTrader: (1)

Depends what they mean by classed as a company car?

Also, i guess you could give your insurance company permission to speak to your employer in case of an accident.

Tidgy

i'd also question if they could legaly disaplin you unless the police presecute for dangerous driving or drink driving etc etc.

Simon C

Cheers all, keep em coming. At the mo we are refusing to sign the new terms because of this.

Coffin Dodger

I get a car allowance too. It a bit pointless really as I never need to drive anywhere on business. If for some odd occasion I did have to then I'd hire a car to do so. I don't insure my own car for business use. In so far as our own company is concerned they just use it as a way of paying us extra but without the NI and pension contribution that would go with normal salary.

In fact I was told by the manager recently that the health and safety issues around using your own car for business are a real grey area. Okay you should keep it maintained and in roadworthy condition but if you use it for a business trip the the responsibility lies with the company to prove the car is safe for use. Now are they going to inspect my car for roadworthiness every time I need to go somewhere in it, or ask me to provide proof that I'm maintaining it as the manufacturer intended. The what about consumables like tyres etc.

Anyway the conclusion was that we weren't to use our own cars for business use any more Told we should use public transport and/or taxis now (and they keep copies of the MoT certs from the taxi company we use!). Paranoid or what! Suits me though Still get a car allowance

Scooby Snacks 23

If they're paying it to you as salary (albeit in excess of your basic salary) then NI is being paid by both you and the company.

Most private companies would not deem their car allowances to be pensionable, but there may be legacy arrangements whereby it is.

urdad

WE recently had the "corporate manslaughter" chat at work.
It basicaly "covers" the company from any claim arising from an employee having an accident whilst on company business not just for salespeople either,this could also mean traveling between a work place and meetings(or such) held elsewhere.
The insurance is a strange one as you can get a cover note etc,etc,what they really want is access to your licence status/details.
If they can prove that they checked and your licence is valid then they see themselves as in the clear:if they employ a 3rd party to check and you sign a waiver of you rights(data protection),you are allowing the 3rd party access to your information at DVLA.
A lot of people won't do this(read any 3rd parties website about information and their rights to use it) and as a result our company has now got to lay on transport for an annual meeting,very soon in fact...
I think some of these companies are varying their interpretation of the laws governing this,and I'm pretty sure a photocopy is not valid for anything other than a brief inspection...

Steve vRS

My company is very hot on driving as we recognise it as our riskiest activity - including travelling off shore and working on Top Tier COMAH chemical sites.

To this end, I have driver training every 2 years.

It's bobbins but it's a good tick in the box

Steve

Gordo

[QUOTE=Simon C;8459108]

The comp in the event of an accident will laise with your insurance company to determine fault and if its you give a disaplinary!


QUOTE]

this is unworkable - discipline you for what most of the time would be a civil offence at worst? and what would they do when, for many accidents, no fault is agreed and the claim is split between the parties? sounds like someone in HR wants bollocking for this - a half-decent lawyer would run rings around them.

bugeyeandy

Depends what you mean by car allowance - ie do you get paid a monthly amount or do you get paid mileage?
I drive a lot of different vehicles for work but don't own any of them, the company does. I know if I caused an accident whilst driving one of them i'd get disciplined and possibly fired.
You need to get them to define what they mean in more detail. I'd guess they mean if you cause an accident while driving on company business you can expect to be disciplined.
Refusing to sign is the best option so long as you all stick together until all of you are happy with the wording.