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 1A 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.