Telematics companies missing the Point?

posted by -
- 40% of companies report privacy concerns
- 20% refuse to implement tracking because of those concerns
- 52% of companies use telematics systems with no privacy option

Over 5.5 million cars are used for work purposes each year in the UK. Over 80% of these vehicles fall into the category of grey fleet. Both company cars and grey fleet allow drivers both private use of the vehicle alongside their work duties.

Traditional GPS telematics companies push factors such as fuel savings, wear and tear and reduction in unauthorised travel as reasons to implement telematics. All of the above suggest that employees are untrustworthy speed freaks. Telematics are the solution to control the work force.

The RAC has this week launched their new Telematics solution. The Bluetooth enabled ID fob allows the driver to turn the telematics device on or off prior to trips. Fantastic! This is great or privacy rights of the employee. They are in control. No big brother, no micro managing, no problems!

Not quite. Why should telematics be used in company cars or grey fleet? To overcome the pitfalls of mileage expense claims of course! HMRC have strict guidelines on what needs to be included in mileage expense claims. Telematics gather all of the information needed to compile mileage records.

ABAX know that HMRC is clamping down on false or exaggerated mileage claims through the use of Task forces. That is why ABAX design our products to be tax compliant and respect the privacy rights of the employee - all before we look at the traditional factors of telematics.

Why have a telematics system that the employee can choose to turn on or off? Why rely on human error to compile mileage claims - you may as well stick with a pen and paper log book if that is the case. Why not use telematics to gather ALL of the data, but then allow the driver of the vehicle to administrate the collected data first?

By allowing a driver to compile a mileage claim from a list of completed trips, say at the end of a working week, the driver is in control of what they allow the business to see. Of course all of the private travel will remain hidden. All of the business travel will be submitted and claimed for. However the driver is now in a position where it becomes very risky, if not impossible to submit false claims.

For more information on tax and privacy, speak to ABAX today!