Tel: 01736 795753
This email address is being protected from spambots. You need JavaScript enabled to view it.

Employee Car Ownership Scheme (ECOS)

Source: HM Revenue & Customs | | 14/05/2019

An Employee Car Ownership Scheme (ECOS) is a set of arrangements whereby employees acquire cars from a specified, often single source and within a specified financing framework. The use of an ECOS can be seen as a halfway measure between providing a company car and leaving an employee to make all their car arrangements privately.

An ECOS gives employees similar benefits to having a company car, for example a new car on a regular basis, and/or central organisation of insurance and servicing but is structured in such a way that the normal car and fuel benefit provisions do not apply.

As the normal car and fuel benefit charges do not apply to an ECOS, HMRC is clear that each transaction has to be considered individually for both tax and NICs purposes to identify whether tax or NICs apply. One of the most important conditions that must be met for an ECOS to be in place, is that the ownership of the car in an ECOS is transferred to the employee at the outset otherwise car benefit will be due.

An ECOS may be designed and administered by the employer, by a company within the same group as the employer, or by a third party that specialises in provision of alternative packages to the company car.



Search Archive


Latest News

New checker tool to help businesses prepare for Brexit
11/09/2019 - More...
The government has launched a “Get ready for Brexit” public information campaign to help

Immigration rights of EEA citizens in the event of a no-deal Brexit
11/09/2019 - More...
The Government has now announced the revised transitional arrangements that will apply in the event

Get information about a company
10/09/2019 - More...
There is a significant amount of information that can be obtained from Companies House. Companies

Search

Our Address

Greenwood Wilson
The Old School
The Stennack
St Ives
Cornwall
TR26 1QU

Contact Us

tel: 01736 795753
fax: 01736 798642
This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login