1. This is where an employee has a cash allowance added to their salary, so they are free to lease or buy a vehicle of their choice.
2. Great flexibility
3. Responsibility sits with the employee for insurance, maintenance, servicing, and other costs.
4. Cash allowance vehicles make up part of what is known as the “grey fleet” (this covering all privately owned vehicles that are used for business travel.

1. Employer run option.
2. Employee chooses to use some of their salary before it is taxed in exchange for the use of a brand-new car.
3. Pre-tax paid lease, so no NI and income tax paid on these earnings.
4. This allows employees to fund a more expensive
car then that they might have otherwise chosen.
5. Insurance, maintenance, tyres and breakdown cover are included in most salary sacrifice schemes.
6. As these vehicles are generally used for work purposes it provides comfort to employers that their duty of care obligation is met, and the employee is in a safe maintained vehicle.

1. Structure ECO scheme, alternative to car or cash allowance.
2. No company car tax for the employee.
3. Very tax efficient for both the business and employee.