Thanks to their complex architecture, ECO systems can generate some cost advantages, so the total cost of the tax is lower than that of a company car. The ability to achieve these cost savings is clearly limited for low-carbon vehicles, for which tax costs are already well controlled. Processing schematic requests and explaining available options. From a worker`s point of view, ECO systems can certainly bring valuable benefits to everyone, but they can be particularly beneficial when other methods of financing, such as wage victims, have a negative impact on taxation and social security. This is most often seen when workers who pay higher taxes choose cars with high CO2 emissions. ECO programs have been around for many years, but have recently been somewhat overshadowed by victims of wages. However, changes in the way biK is calculated for pay-affected cars mean that employees` private car ownership systems are being revived. Once an ECOS is set up, a company is not obliged to pay NIC on the system, while the worker is not taxed as a company car and is not taxed on the private power of the fuel. ECO systems can be adapted to many types of organization and fleet, depending on their objectives for staff performance and transportation needs. Although cars are not technically “company cars,” systems are generally structured to look exactly the same as a company car. For some, ECO systems seem too complicated, but when dismantled, they are actually relatively simple mechanisms.
From the driver`s point of view, they look a lot like a normal function car, but there are some important differences in the way the systems work. As mentioned above, to ensure that benefits tax is not payable, the property is transferred through a credit purchase contract to the staff member at the beginning of the contract. Alternatively, the system can be open to all employees who will maximize recruitment and engagement benefits, commonly referred to as the All Employee Car Ownership Scheme or AECOS. Since these systems are not intended to recreate a kilometre of business in a company car (as in a SECOS), this is generally not a determining factor when it comes to the suitability for an AECOS. However, it is very important to consider the possible pitfalls of an employee`s car ownership system, and professional advice is essential. In addition to the benefits already mentioned, ECO systems offer a wide range of benefits to organizations and their employees.