Menu .ST0{FILL:#FFFFFF;} The CBS Solution What is an Employee Car Ownership Scheme? Click play to find out. Employee Car Ownership Schemes (ECOS) are a method recognised by HMRC of providing a car to an employee in a way that means that the Benefit in Kind taxation restrictions of other employee car schemes do not apply. Car Benefit Solutions design, implement and manage Employee Car Ownership Schemes which remove the limitations of a traditional company car provision, whilst allowing businesses to determine the level of benefit they provide to their employees and how those savings are distributed. Contact Us How do Employee Car Ownership Schemes work? Unlike other company car arrangements, in an Employee Car Ownership Scheme, the employee is the owner of the car from the outset. By using this structure, company car tax (alternatively known as Benefit in Kind taxation) is not payable and the employer does not pay Class 1A National Insurance (NIC) on the car benefit. View Our Fleet Solutions This can provide significant savings when compared to traditional company car and salary sacrifice schemes. The employer determines which vehicles are available for selection and employee eligibility. An ECOS can be utilised for employees who currently have company car entitlement or as a wider staff benefit. Within the low monthly repayment, the driver could also enjoy benefits such as servicing, maintenance and insurance, retaining all of the convenience of a company car. Employee Benefits: No deposit Low monthly repayments No hidden fees Access to a range of new vehicles Maintenance & servicing included No credit reference agency check* Able to hand the car back at the end of the term *Please view the FAQs here for further details What are the advantages of an Employee Car Ownership Scheme? Reduced fleet costs Material business savings which can be utilised by the employer or passed on to the employee Reduces admin burden Removes the need for company car tax reporting Bespoke choice lists Employers select the vehicles available, driven by business requirements and preference Keeps credit lines available Off-balance sheet funding (IFRS 16) is available from CBS CBS provides a complete service solution, which includes full implementation, training and long-term management of ECO schemes using CBS’ tailor-made digital platform and bespoke systems. Thorough consultation and employee fleet analysis ensures that each scheme is tailored to meet business objectives. Find out how an Employee Car Ownership Scheme could help your organisation Contact Our Experts Legal information Slavery Statement Privacy Statement Cookie Policy Terms & Conditions Tax Strategy Authorised and regulated by the Financial Conduct Authority Car Benefit Solutions, The Barracks, 400 Bolton Road, Bury, Lancashire, BL8 2DA © Car Benefit Solutions 2021 Website by Pixel Kicks .st0 { fill: #FFFFFF; }