How can I enjoy the benefits of an ECOS immediately?
Accessing the benefits of an ECO Scheme without significant investment in additional resource and systemsTags: Automotive ECOS Taxation
We examine the people, processes and systems needed to implement an ECO Scheme
As the taxation cost of providing a company car benefit rises, it has an increasing impact on both dealer and employee behaviour, creating limitations and restrictions based on viability, expenditure and employee affordability. The result is often a company car scheme which is neither working well for the business or its employees.
At a time when the automotive industry is facing downwards pressure on profitability and challenges to recruit and retain key personnel, it is critical that the benefits of an ECO Scheme can be accessed easily without the dealership having to make significant investment in additional resource and systems.
Whilst the concept of ECO Schemes may seem simple, the design, inception and delivery of a robust solution is far more complex and requires the necessary systems, processes and expertise to administer in a compliant and effective manner.
Why choose an Employee Car Ownership Scheme?
The primary benefit of an ECO Scheme is that the repayments are not derived from CO2 emissions,
so the same uncertainty and restrictions that surround company car tax do not apply.
- ECO Scheme vehicles do not constitute a company car and are not subject to company car tax.
- An ECO benefit can provide a fantastic recruitment and retention tool.
- Employee savings deliver a cost effective alternative to a pay increase.
- ECO Schemes can be utilised for employees with car entitlement or as a wider staff benefit.
- A properly structured ECO Scheme can help dealerships to manage and reduce write down costs.
- The cost of the car to the employee and employer is fixed over the term of the agreement as opposed to being subject to increasing tax and NIC costs.
In our latest white paper, we explore what resources are required to set up a robust ECO Scheme, focusing on the people, processes and systems required.