It has devised an employee car ownership scheme which acts as an alternative to the traditional outright purchased company car. The Structured Employee Car Ownership Plan (SECOP) sees employees receive a cash allowance to fund a car, but in a scenario which replicates the comfort factors of a company car. Drivers remain in a tax neutral position.
SECOP avoids the benefit in kind tax charge and employer's national insurance, and uses a combination of the Fixed Profit Car Scheme to reimburse drivers' business miles alongside top-up cash payments to make the cash allowance. Drivers acquire their cars under an umbrella package which includes maintenance and fully comprehensive insurance, taking advantage of the bulk purchasing power of their employer.