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The take-up of any alternative cash option will be significantly influenced by: The choice of cars available on the company car list; the alternative amount of cash being offered and the business mileage reimbursement rate – which may also influence business miles travelled!

car and calculatorMany organisations recognise that offering cash allowances and allowing occasional business travel in a private vehicle has benefits. However it also carries certain risks. For example:

  1. The cost of business travel can quickly become higher than the cost of providing a company, pool or rental car.
  2. The employer must be aware of and manage the associated duty of care risks*
  3. A migration to cash may limit an organisations ability to negotiate fleet discounts

*An organisation’s duty of care extends to those staff that have chosen to take the cash option instead of a company car and then use their (privately owned) car for business travel, often referred to as Grey Fleet drivers. 

Fleet and Fuel can also help you create a policy that mitigates risk; ensures cost-effective cash allowances and offers drivers mileage reimbursement that ensures they are compensated accurately for business travel.

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