Eco Company Car Scheme

Employee car ownership eco schemes differ from company cars in one fundamental way.

Eco company car scheme. Employee car ownership schemes eco schemes are becoming increasingly popular with companies and their employees. An employer may transfer ownership of a leased car to an employee under an eco employee car ownership scheme. With this type of funding programme the car belongs to the employee but closely emulates a company car. Employee car ownership schemes.

Speaking to fleet world director david rawlings said company cars were no longer the default option. The key benefit to this is that we are able to manage the entire car salary sacrifice process and take care of all scheme administration and employer liaison. The example is based on a standard 22 tax payer earning. Having said that a number of cars are still provided through eco schemes.

Energy company obligation is an e serve scheme requiring suppliers to deliver energy efficiency measures to domestic premises find out more here. The car is owned by the employee. The figures below outline the bare bones of a structured employee car ownership scheme from the perspective of a company car driver. These came about in the 1990s because the old bik tax system penalised low mileage drivers.

Most businesses will probably need a combination of ecos and a company car scheme that allows employees to have a choice of cars that lie outside any contract hire selections at no more cost to the business. Like a company car but without the bik. Energy company obligation is an e serve scheme requiring suppliers to deliver energy efficiency measures to domestic premises find out more here. If flexibility and value are important then think ecos.

Eco schemes are seeing a major revival among fleets as massive changes within the company car sector prompt businesses to re evaluate their approach according to fleet consultancy firm bcf wessex. Employee car ownership schemes. Under an ecos the car is owned by the individual but paid for by the company. Running a company car scheme if you are thinking of setting up a company car scheme but dont know where to start nationwide vehicle contracts has put together a short guide to explain the different types of company car schemes available and the tax implications involved.

Total motion delivers supports and administers a wide range of schemes on behalf of its clients to complement their overall fleet policy. Employers that have implemented eco schemes have withdrawn these and reintroduced atraditional company car policy focused on low emission cars complemented by a salary sacrifice arrangement interest free loans.