Have you just received your ECS invoice? You understand How the Electric Car Scheme Administration Fee is calculated but the numbers just aren't adding up to you?
If you have read page 2 of the ECS invoice and its still not clear, don't worry! The Scheme definitely runs at a net zero cost. But we know that sometimes the numbers can get confusing, so we wrote this article for the most common reasons why it may not be clear at first glance.
Accelerated payment profile
Your employee has chosen an accelerated payment profile. This is where they agree to have higher monthly salary sacrifice amounts for the first 6-12 month of their lease. This is because they are paying for the ECS Admin Fees in those first months, rather than for the whole lease period.
Therefore, your ECS fees may look higher than expected but you as a company are recovering this through your employees salary. You will see a breakdown of this if you look at page 2 of your invoice.
For more information on salary sacrifice profiles read: What is the difference between a flat and accelerated salary sacrifice profile?
Additional charges
The ECS invoice can also include additional charges outside of our Admin Fees.
- Home charger
- Car insurance
ECS pay for these directly, then we recover the payment from the company. The company in turn, recovers it from the employee, meaning you are not at a loss.
The ECS invoice does not match the car providers invoice
That's because it's not supposed to. We are invoicing for different things. The ECS invoice is just our Admin Fees and charger or insurance costs (if applicable). The car provider's invoice is for the cost of the lease, maintenance and one off costs, such as excess mileage or fines.
If you still aren't sure about the numbers, please feel free to reach out to our team at support@electriccarscheme.com