SECO is a way of offering a company car scheme but with savings to both employer and employee.
In a Structured Employee Car Ownership scheme, the employee is the owner of the vehicle from day one, so BiK is not payable on the car benefit itself.
With traditional company car schemes if the vehicle is made available to the employee for private use, in addition to business use, then BiK will be payable.
However, increasing Benefit in Kind has seen employees opting out of employer schemes and choosing a cash allowance alternative.
|Full Maintenance (inc. tyres)
Potentially significant savings for both employers and employees over some traditional company cars
Retain control of the fleet policy including vehicle choice and employee grades
BIK is no longer payable therefore employees can save
All cars are brand new, come fully maintained and include benefits typically associated with a company car
A balanced and well structured scheme helps to attract and retain employees
The employer retains control of the fleet policy so can decide what vehicles are made available to employees based on their profile and grade.
|> 5,000 business miles per annum
|< 5,000 business miles per annum
|40% tax payer
|20% tax payer