hi gang, im doing agency work at the moment and they are trying to
encourage car sharing ,ive sort of opted in to share but was wondering what
the legal requirements are.... my drivers licence says not for hire or reward
code 101 but does recieving petrol money count?
plus does it effect my insurance as im covered to and from my place of work.
cheers zoo
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1) provided you *only* receive expenses and there is no profit element, then you are completely fine.
2) What we regard as to and from work, is normally defined as something similar to; "to and from one permanent place of employment".
If you are travelling to multiple places where *you* are employed, then declare this to your insurance company since this is business use, not to and from. If you are merely referring to dropping people off where *they* work, then don't worry about it you're fine.
however, if you have doubt then simply send your insurer a letter and keep a copy. Something one should always do if one is unsure.
But from the sound of it, you're fine.
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The principle of lift share is that you sometimes drive, sometimes are a passenger thus reducing the overall miles you drive.
As long as no money is changing hands then there is no reward involved.
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Taken from the internet.
www.lawontheweb.co.uk/Road_Traffic_Law/Car_Insurance_Law
Car sharing
Many insurance policies do not cover you for journeys that could be construed as commercial. In order to protect car sharers the law provides certain provisions that stops insurers from regarding such a journey as commercial and ensures that you are covered. These provisions are:
- The vehicle does not carry 8 or more passengers.
- The fare paid by the passenger, or the aggregate fares paid by passengers, does not exceed the running cost of the journey. An allowance for depreciation and wear is applicable.
- The fares, if different for different passengers, were agreed before the journey was undertaken.
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In other words the passengers could pay you up to the HMRC accepted rate (45p per mile) between them and there would be no problem whatsoever.
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thanks, all replies gratefully acknowledged ...peace of mind assured now
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>> In other words the passengers could pay you up to the HMRC accepted rate (45p
>> per mile) between them and there would be no problem whatsoever.
>>
It doesn't say that anywhere. Do you know more than the rest of us?
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As 45ppm is not designed to make you a profit, I see no reason this would not be acceptable.
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>>As 45ppm is not designed to make you a profit,
It depends on the car you drive. A £450 1.1 Micra will make you a nice profit at 45p per mile.
45p is an arbitrary sum that HMRC consider to be acceptable. It doesn't have anything to do with insurance law.
Last edited by: Mapmaker on Wed 20 Mar 13 at 19:03
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>>
>> - The fares, if different for different passengers, were agreed before the journey was undertaken.
>>
>>
Curious.
Does that mean the actual fares were worked out in advance, or that there was an agreed fare rate, say 25p per mile, agreed in advance?
So if you give someone a lift, and later he insists that he must give you a contribution because you went a long way out of your way, that would be commercial?
But if you offered him a lift and before starting said "That'll be 6/8d gov." then it wouldn't be?
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>> But if you offered him a lift and before starting said "That'll be 6/8d gov."
>> then it wouldn't be?
>>
I think an extortionate fare like that would certainly be commercial Cliff, what with petrol at only five and a tanner a gallon.
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>> I think an extortionate fare like that would certainly be commercial Cliff, what with petrol
>> at only five and a tanner a gallon.
>>
only four and ninepence plus threepence for the shot of redex when I was a lad
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>> only four and ninepence plus threepence for the shot of redex when I was a
>> lad
>>
This reminds me of a girl from my school days who was known to all the boys as "Penny Farthing" because.....
Oh, never mind.
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>> plus does it effect my insurance as im covered to and from my place of
>> work.
Normal cover is to and from a single place of work.
To be honest, I'm not sure how agency work is regarded, but I suspect you perhaps oght to have Class 1 business use. Some policies include it as standard anyway and if not it's generally a minimal extra cost. If you're getting mileage from the agency then you should have it.
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car share...legality - No FM2R
