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SECO is a way of offering a company car scheme but with savings to both employer and employee.

What is SECO? An alternative way to fund your fleet

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.

What is included?

Contract HireSECO
Full Maintenance (inc. tyres)
Motor Insurance
BIK Payable
Comparing SECO and contract hire by feature

What are the benefits of SECO?

The main objective of a SECO scheme is to deliver cost savings to the employer whilst retaining control of the fleet policy.

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

Want to find out more? Get in touch here or call 0330 333 5678

How does SECO work?

A scheme is structured to look and feel like a traditional company car scheme. The key difference is that the employee is signing a Credit Sale Agreement (CSA) which transfers title in to their name.

The employer retains control of the fleet policy so can decide what vehicles are made available to employees based on their profile and grade.

The costs are covered using a combination of:

  • Approved Mileage Allowance Payments (AMAPs)
  • Employee contribution towards the car
  • Employer top-up (if required)

Is SECO right for my business?

At Ogilvie we work with our clients to determine what scheme will work best for them and their employees.

Typically a SECO scheme will work best where:

  • An employee is driving more than 4,000 business miles a year
  • An employee is a higher rate tax payer
  • A car policy includes diesel or petrol models

Our modelling software allows us to work out the most appropriate form of funding for your fleet, based on individual vehicles and driver needs.

Contract HireSECO
> 5,000 business miles per annum
< 5,000 business miles per annum
40% tax payer
20% tax payer
Diesel/Petrol Policy
BEV/PHEV policy
Comparing contract hire and SECO for different drivers

Want to find out more about SECO?

or call 0330 333 5678