Have you recently got a new job? Will you be driving your own car for business? If so, there are a number of things to know that you may not have considered.
If you’re #DrivingForBusiness, you need business car insurance. If you lease a hyundai or own your car, and you’re driving anywhere for work (other than your daily commute), you’ll need to make sure you’re covered. In the UK, there are four types of insurance for this purpose. Business class 1 will cover you if you’re occasionally traveling to other events and sites- as long as you’re not primarily using the vehicle for business.
Business class 2 covers you and one other person for this purpose. If you have more extensive travel and higher mileage, you may need business class 3. This is perfect if you’re using your car for business most days- for example, if you’re a travelling salesperson.
The final option is commercial, which covers driving instructors and taxi drivers.
If you’ve just realized you need business insurance, this may be a shock. But keep in mind that your costs will differ depending on both your driving record and your experience. There are also plenty of ways you can bring these costs down. Add security features like trackers and alarms on your cars, pay your insurance premium up front, shop around for the best price, and check if you can add your car to company fleet insurance.
If you’re paying for your insurance, this should be recouped by the mileage your company pays for travel. If your employer is paying for it, you’ll need to keep any receipts so this can be claimed.
The HMRC has set Approved Mileage Allowance Payments which are recommended for work travel. These should cover insurance, fuel, and wear and tear for your vehicle. If you’ll be traveling with a passenger, you should add 5p per mile to your AMAP.
Your business should be giving you an allowance for food and drink (depending on how long your trip is). You should also be able to reclaim any parking expenses, although you’re ultimately liable for any fines or tickets.
If you’ll be driving for work, make sure you stay safe. Don’t drive while you’re tired, crack the window for some fresh air, and take regular breaks.