Dylan RobertsonSalary sacrifice provider EZOO has reported that the proposed changes to Employee Car Ownership (ECOS) schemes could present an opportunity to employers.
EZOO said that it has seen significant interest from companies looking to switch to a salary sacrifice scheme, in order to get ahead of the proposed changes.
Changes would see Benefit-in-Kind (BiK) levied on ECOS participants, increasing the cost of such schemes.
The updates are likely to take effect from October 2026.
EZOO said that salary sacrifice agreements offer cost savings when compared with traditional leasing, while offering employers a hassle free and cost-neutral benefit scheme.
Lash Saranna (pictured), CEO at EZOO, said: “There is huge potential for businesses to ensure that ECOS regulation changes don’t impact the way they operate or cost additional money.
“By switching to a salary sacrifice scheme, employees still have the benefit of a new car, capable of use for personal or business mileage, while saving tax.
“For employers, the benefits of offering salary sacrifice are numerous, but compared to ECOS, it’s a lower risk scheme that aligns more closely with tax incentives for electric vehicles and removes the risk of compliance issues.”
