Employee Car Ownership Schemes (ECOS)
Employee Car Ownership Schemes, or ECOS for short, give you and your employees the benefits of a company car without the associated company car tax – increasing flexibility, improving controls and generating savings.
Video: ECOS Explained
31.12 Sec
Your business and employees can enjoy the operational benefits of a company car, but without the associated company car tax.
Benefits of ECOS
Generate Savings
Gain Full Control
Fleet Freedom
How ECOS Works
Employees choose a vehicle
Selection, ordering and delivery all managed on the CBS Portal.
Vehicle is sold to employees
Employees no longer subject to company car tax.
Employees pay monthly
Contribution via net pay and no impact on credit score.*
Easy renewal process
At the end of term, employees can choose a brand new car.
Employee Benefits
Provide a market leading car benefit, helping you to attract new talent and retain the best staff.
*See FAQs for further information.
We’ll help and support you throughout the duration of your fleet contract.
Breakdown Support & Tyres
Service, Maintenance & MOT
Fines & Charges Management
Windscreens
Replacement Vehicle
Driver Dedicated Helpdesk
Let’s Talk Tax
Is ECOS Right
For You?
Remember, our ECOS can be one part of your overall solution alongside our other products, creating a blended car benefit package.
Discover all our solutions for employee car benefits.
- You want to generate savings on your current fleet.
- You are happy to continue running the cars that work for your business and employees.
- Your employees drive business miles.
- You want to remove the P11D admin burden of your current solution.
An Employee Car Ownership Scheme (ECOS) is an efficient method of delivering a vehicle to your employees with the benefits of a company car, but without the usual associated tax. The car is sold to your employee via a Credit Sale Agreement (CSA) and as ownership is transferred to them, the car is no longer classed as a company car and Benefit-in-Kind tax (known as company car tax) isn’t payable.
HMRC only need to be notified if your employee is changing from a company car to an ECOS vehicle. Your employee should let them know that they are no longer in a company car so their tax code can be updated accordingly. They can update HMRC online here after logging into their Government Gateway account, or by downloading the HMRC app. Alternatively, they can call on 0300 200 3300.
The employer insures ECOS vehicles on the fleet policy, so employees can drive the vehicles for business, social, domestic and pleasure purposes.
Settle the outstanding finance and retain the vehicle; or exercise the option to sell the vehicle back to CBS for the pre-agreed price stated in your CSA. Subject to unfair wear and tear, the proceeds are normally enough to settle the outstanding balance(s).
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