Auto Allowance Claim

Jason told me that because of the long holidays last month to celebrate Spring Festival, he would not be able to make his usual

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auto allowance claim. His monthly claim is always backed up with receipts and from what I could tell Jason tries to take advantage of loose policy by putting in a claim even for personal use of the vehicle.

According to Jason, everyone does that and it makes me wonder if this could happen if the company adopts a mileage reimbursement program since it could be more accurate.

About twenty years ago, it was most common for companies to assign the use of company vehicles to their mobile employees but that wasn’t very practical since many of these mobile employees would use the vehicles for non-work related purposes. Now, mobile employees, like those in sales, are required to provide their own vehicles for work purposes and only those in upper management have access to company cars.

I think that it’s a fair deal for mobile employees to provide their own vehicles. This would enable companies to reduce liability, lower risk and better manage costs and at the same time, auto allowance paid to employees are tax free so it’s actually beneficial to both parties. My friends tell me that I only think so because I am not a mobile employee myself! LOL

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