For some car allowances are used as a tool for delivering ‘company cars’ in a more tax efficient manner, these are commonly known as ECO or ‘Employee Car Ownership’ schemes. ECO schemes make effective use of ‘Tax Free’ business mileage rates to reduce the amount of taxable ‘Car Allowance’ necessary to fund the business car, and can be an attractive proposition if you have high mileage drivers.

Whereas the principles that govern these schemes are pretty much consistent across a range of products on the market, the methods of calculation and sometimes the components used vary dramatically from provider to provider and as such the evaluation of schemes can be exceedingly complex.

Couple the complexity with the necessary variations in compensation and tax efficiency that will be inevitable with a driving population driving different vehicles, with different mileage patterns and with different tax codes, you may find that you have only the product provider’s word and sometimes loaded calculations as the basis for critical decisions.

Additionally, these schemes, regardless of the sales speak, are quite demanding in terms of resource, and as such you will need to take account of internal and outsourced structure when taking decisions.

Fleetworx have experience with many different schemes, and can help you evaluate these from a level playing field. We also know where licence is taken on ‘projected savings’ and can highlight the militating circumstances that need consideration.

We have the tools and experience that you need on your side of the table, to help create ECO solutions where both parties have their eyes open and that can be effectively measured going forward.