The three major compliance risks when self-administering an Employee Car Ownership Scheme
How can employers continue to provide the benefits of ECOS to employees whilst remaining compliant?Tags: Automotive ECOS Taxation
The rising cost of company car tax has led to many motor dealer groups looking for alternate ways to provide a staff car benefit
With an increasing number of franchised dealers migrating away from traditional company car arrangements, some have considered running their own Employee Car Ownership Scheme (ECOS) without the support of a specialist provider such as CBS.
Upon review, whilst these schemes can remove the restrictions of company car tax, they often expose employers, senior management and their employees to significant risk.
Within this paper we explore three major compliance risks when self-administering an ECO Scheme and highlight the potential repercussions which include;
• Significant tax liabilities
• Committing a criminal offence
• Unlimited fines
• Removal of permissions to broker car finance and other financial products