The CBS Solution

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.

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.

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.