Once your employee has their car delivered, the Electric Car Scheme will begin sending the company monthly invoices. This article goes over all the possible items that might be on the invoice and what they mean.
One thing that is important to remember is that the Electric Car Scheme will always run at zero costs to the company.
VAT can be reclaimed on all items on the invoice.
Items on the invoice and what they mean
You can see all the items the company is being invoiced that month on the first page. Items you might find on your ECS invoice include:
- The ECS Admin Fee
- Home charger including standard installation
- Comprehensive car insurance
- Any refunds or discounts from ECS
The ECS Admin Fee
This is equivalent to the savings the company make by participating meaning the scheme runs at no cost to your business! The fee covers all administration costs, such as the monthly payroll instruction we provide; our market leading Risk Protection; access to our EV Specialists and more.
The Admin Fee is the sum of:
- Reduction in company NI contribution
- Reclaimable VAT
- Minus the tax on BIK
Check out this article for more information on how the fees are calculated: How is the Electric Car Scheme Administration Fee calculated?
Home charger including standard installation
If an employee chooses to have a home charger installed through ECS, this will be added to the invoice. ECS pays the installer directly and then collect the payment from the company in monthly instalments for thee first few months of the lease. The company then recoups this payment from the employee via salary sacrifice.
This article has more information on paying for the home charger: How do I pay for my home charger?
Comprehensive car insurance
If the employee has car insurance included in their EV salary sacrifice package, the company will also see this in their ECS invoice. ECS pays the insurance provider directly, then the company pays ECS and then the employee pays the company via salary sacrifice.
Any refunds or discounts
Any prior agreements with ECS for refunds or discounts will be shown on your invoice.