HMRC internal manual

Employment Income Manual

EIM31500 - Employee Car Ownership Schemes (ECOS): contents

Introductory remarks, common to this section of the guidance

Unlike car benefit (EIM23000) and car fuel benefit (EIM25500), no single body of legislation deals with ECOS. Instead, the relevant law when considering ECOS is drawn from various parts of the employment income and NICs legislation.

This guidance does not attempt to cover all relevant parts of the legislation in detail. Instead, it seeks to draw the essential aspects together in order to identify where tax and/or NICs can be payable under the normal benefits and expenses rules as they apply to ECOS.

The same principles apply to ECOS vehicles as to any privately-owned vehicles used for business travel.

Unlike the remainder of this manual, EIM31500 to EIM31599 cover both tax and NICs.


Basic guide to tax and NICs treatment of payments in connection with business mileage (tax) or use of the vehicle (NICs)
  1. EIM31580
    Payments to the employee in person in connection with business mileage: tax treatment
  2. EIM31585
    Payments in connection with use of the vehicle: NICs treatment