Employee Car Ownership (ECO)

Supporting the UK car dealership network with an alternative to a traditional company car

Contact us today:  0161 888 2811

Close Brothers Leasing have developed the Employee Car Ownership (ECO) scheme as a solution to support the UK car dealership network with an alternative to a traditional company car.

By introducing an ECO scheme, dealers and their employees may be able to benefit from a tax efficient scheme where the employee owns the vehicle from day one and company car tax and national insurance contributions are significantly reduced as a result.

How does Employee Car Ownership (ECO) work?

Typically employees make a monthly contribution from their net salary for the vehicle, which must be sold to the employee on day one by the dealer at net cost. 

A credit sale agreement is used to document the contributions to be collected and also outlines the final payment that the employee must make to satisfy this agreement.  In lieu of the final payment the employee can opt to invite the dealer to buy the vehicle back from them.  

If this option is selected the vehicle is taken back into stock by the dealer. This transaction removes the obligation on the employee to make the final payment, terms for the credit sale agreement can vary, but tend to be between 3-12 (max) months in duration.

ECOS

What are the benefits of an Employee Car Ownership (ECO) scheme?

Working in conjunction with the Close Brothers ECO team, there are significant financial savings to be generated from a well structured, documented and HMRC approved scheme, where employees are also able to benefit from savings when compared to a traditional company car scheme.

Any ECO scheme provided by Close Brothers will be submitted to HMRC for clearance in the name of the dealer group. ECO schemes are not suitable for all dealer groups and we will work with you to understand the opportunities and challenges presented. 

We will also work with an independent Tax Advisor appointed to you to ensure you get the support you need to make an informed decision around your options.

ECOS

Contact Close Brothers Leasing

0161 888 2811

Close Brothers Leasing

Olympic Court
Third Avenue
Trafford Park Village
Manchester
M17 1AP

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