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Pauline Aubigne
Member - 1 post
Some employees in the Company have car allowances.
For employees with car allowance we require them to have their personal insurance to cover for business miles.
This generally is at no cost to employees but we have one employee that needed to pay an additional fee to cover business miles.
My question is: Should the company reimburse this employee for this additional fee or this is covered by the car allowance anyway?
We do not pay for example for new tyres or any car maintenance, but we asked employees to have insurance cover for business miles
Thanks
Gladys
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Jane Byford - Martineau Solicitors
Online advisor - 9 posts
Dear Gladys
Thank you for your recent query.
Provided that your contracts make it clear that those employees who receive a car allowance will have to insure their cars for business use at their own expense, you are under no obligation to reimburse this employee for the additional fee.
Yours sincerely
Jane Byford
Partner
Martineau Johnson
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Anonymous
My company provides leased vehicles for the Executive Director and the Director of Operations only. Another position has been added to the organizational chart that is equivalent to the Director of Operations. The person in the new position does not have a leased vehicles, but receives mileage reimbursement. We need to develop a written policy. Can you refer or provide me with a sample car allowance policy?
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