Trouble with ECOSs. From 6 October 2025 some types of employee car or van ownership scheme (ECOSs) that currently fall outside the scope of benefit in kind rules will be caught.
What are ECOSs? They are an alternative to employer-provided cars and vans. Typically, ECOSs involve an employer making or arranging a loan to athe employee who uses the money to buy a car which they use for their work and private journeys. The employee makes the loan repayments funded in whole or part from tax and NI-free approved mileage allowance payments from their employer for business journeys.
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