How the scheme works,
Current thinking on the provision of cars to employees is split. Many companies still provide the "traditional" expensed company car, while a growing band are offering employees a supplement to salary to allow them the freedom to choose and maintain their own vehicle.
The basic idea is that the vehicle is provided and funded by the employee and not the employer. However the provision is in effect "sponsored" by the employer, meaning that the employee can have their current choice of car without suffering any kind of financial detriment.
ECOS can also be designed to be financially attractive for employees, as well as allowing them at the employers' discretion to benefit from a wide choice of cars, upgrades and downgrades are much more attractive than under a company car arrangement and negotiated discounts can also be incorporated.
ECOS covers the whole 'hassle free' package you might expect from a company car, including: guaranteed servicing and maintenance, reimbursement for business miles, emergency recovery, road fund licence and employer provided insurance cover.
Employee's obligations are that they must maintain the car in the agreed manner, and keep and submit a monthly record of business mileage.
"Employee Car Ownership Schemes can be tailored to save either the company money, or the employee the choice is yours, however you need to have your scheme agreed by your local HMRC office and must still ensure that your duty of care and corporate manslaughter responsibility are covered. Just because the vehicle is NOT a company vehicle you are still at risk if it is used for business purposes"
- Employee funded vehicles
- Company retains overall responsibility
- Duty of Care responsibilities are the same as company owned vehicles
- Attractive to employees & employers
- Utilises AMAPS payments