'Zero tolerance' on business miles

The chief executive of a car rental association has called for a "zero tolerance" policy on workers who cannot prove details of their driver's licence, insurance or vehicle maintenance.

At the Office of Government Commerce's (OGC) Annual Grey Fleet Conference, BVRLA chief executive John Lewis also said that high mileage payment rates were encouraging staff to drive more miles.

"Many employers are giving mileage payments of 50, 60 or even 70p per mile, which is far above the maximum tax free AMAP rate of 40p per mile," he said.

He added that companies were wrong to use running costs produced by the AA and other motoring organisations, as these were based on newer cars and include costs like insurance and road tax.

"Mileage allowances should be based on fuel, the cost of maintenance and any loss of value through driving extra miles," he said.

"They should not include these additional costs, which are borne by the owner of a private car regardless of whether they are using it at work."

"Our own estimates suggest that a realistic AMAP rate for the average grey fleet car would be more in the range of 20-30p per mile."

He also urged fleet operators to consider other options such as teleconferencing and public transport.

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