Employee Car Ownership Schemes (ECOS) have been in operation since 2001 as an alternative to the traditional company car scheme. With increasing levels of benefit in kind being levied on company cars, the use of an ECOS could protect your employees from tax increases. They also offer controlled costs for the organisation whilst ensuring the business meets their duty of care obligations easily.

For employees, ECOS feels like a company car scheme in that vehicles are fully maintained and run on a contract of three or four years. However, the vehicle is owned by the employee, not the company, meaning it sits outside of the company car taxation system.

ECOS can be an excellent option for both employees and employers alike, however, it does not work for every business. If you are considering an ECOS, Solve can undertake a feasibility study to establish if this is the right decision for the business. If it is, we will work with you to put a policy in place and ensure you are fully trained on how the system works. At the end of each financial year we can provide a tax illustration for each driver along with your annual reconciliation statement.

If ECOS is not right for your business, Solve will help to find the solution that is.