Employee car ownership (ECO) schemes are tax efficient schemes in which an employee owns their vehicle from day one, significantly reducing company car tax and National Insurance contributions as a result.
With the increasing levels of benefit in kind being levied on company cars, the use of these schemes may be a sensible way of sheltering your employees from the tax increases. Further benefits of the scheme include employer savings in Class 1 National Insurance and improved levels of employee retention, as well as financial assistance (through the employee contributions) towards the running costs of the demonstrator fleet.
We’ve put together a sheet outlining ECO schemes and how they could benefit your dealership. Download it below.