Laboursite exceeds savings through cash allowance scheme

Laboursite, a Middlesex-based construction logistics company, expects to exceed projected savings targets after implementing a cash allowance scheme.

Simon Mills, fleet and expense control manager, said the firm has already saved £34,000 in income tax and national insurance contributions in the seven months since the scheme has been operating. It initially hoped to save £40,000 a year, which he believes it will now exceed.

"We give an enhanced fuel reimbursement rate that gives a margin over the true cost of fuel, so the more miles [staff] do, the more contribution they’ve got towards additional costs such as maintenance and depreciation," he said.

The outsourced contract is managed by The Miles Consultancy, and reimburses drivers at 20p per mile. Mills refuted the suggestion that such schemes fail to adequately protect employer duty of care obligations. The firm’s arrangement includes vehicle and driver licence checks, while drivers must sign that they understand business driving risks.