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FROM THE POSTBAG
Page 94
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A Midlands contractor states that he normally provides a small commercial vehicle for the use of his drivers. One such driver has asked to be put on a mileage basis for the-use of his own 1,000 c.c. car, and the contractor asks for comments on what would be a fair price for him to pay his employees for the use of this car. He adds that the distance so travelled can vary substantially.
The problem in all such circumstances is to determine an equitable proportion of the standing_ costs of a privately owned vehicle which should be met by the employer when a privately owned car is being used for business purposes. Relative to the type of vehicle specified, the standing cost per week as shown in the current edition of The Commercial Motor Tables of Operating Costs is £.5 9s. 8d., exclusive of any driver's wage. It is assumed, incidentally, that such payment already would be met by the wage paid to the person concerned in whatever capacity he was employed.
The running cost per mile, which presumably the employer would meet in full in any case when running on the turn's business, is 3.01d., so giving a total operating cost. of 7.40d, per mile at 300 mites a week, and 6-30d, a mile at 400 miles a week.