NFDA is deeply concerned by the Government’s decision to make vehicles supplied through the Employee Car Ownership Scheme (ECOS) liable for company car tax. The draft legislation, published by HMRC in July, will subject all company cars made available under a relevant ECOS on or after 6 October 2026, to benefit-in-kind (BIK) taxation. Sue Robinson, Chief Executive of the National Franchised Dealers Association, commented: “From speaking with our members and gathering evidence over the last few weeks, NFDA believes this will damage the attractiveness of employment in the industry and reduce the number of new cars being registered, ultimately slowing the transition to electric cars.” Statistics indicate the ending of ECOS will negatively impact staff recruitment and retention for almost half (45%) of dealerships. Additionally, around 150,000 vehicles enter the ‘nearly new’ market annually through ECOS, many of them EVs. “Removing ECOS to benefit-in-kind taxation would restrict large and small dealer groups in their ability to retain and recruit staff and impede progress towards decarbonising road transport. Sue Robinson concluded: NFDA has submitted our serious concerns to HMRC about the ECOS changes to the Finance Bill 2025-26 technical consultation, and we are urging the Government to re-think its proposal and support the motor industry and its workforce at this critical time by maintaining ECOS as a valued and effective employee benefit. We will be following this up in Government meetings in the coming months.”