Employee car ownership
HMRC are reviewing employee car ownership schemes as announced in the Budget 2006. These schemes essentially are run by employers to allow an employee to acquire a car, often within a specified finance framework. This often happens where an employee has opted not to take a company car.
The aims of the review are to find out:
Employee car ownership
HMRC are reviewing employee car ownership schemes as announced in the Budget 2006. These schemes essentially are run by employers to allow an employee to acquire a car, often within a specified finance framework. This often happens where an employee has opted not to take a company car.
The aims of the review are to find out:
- how such schemes work (including financial arrangements);
- what the factors are that have contributed to the expansion of these schemes;
- what the impact of the schemes has been on carbon dioxide emissions and local air quality compared with company cars;
- whether the schemes offer an advantage to employees or employers that should be taxed as a benefit-in-kind and if so how; and
- the wider impact that such a charge might have, for example on the schemes themselves or on the used car market etc..
HMRC are seeking representations from a wide range of organisations with an interest in ECOS and will hold a series of meetings on the review in June 2006. Interested parties should e-mail pa.harris@hmrc.gsi.gov.uk for more information.
www.hmrc.gov.uk
