Salary Sacrifice

What is Salary Sacrifice?

Salary Sacrifice offers all the benefits of a company vehicle for those who wouldn’t usually qualify or have opted out.

Not only is it an excellent way for employees to drive a brand new car, but it’s tax-efficient too; salary is sacrificed before National Insurance and Income Tax, which saves employees money at no cost to the employer.

Our experts will ensure the right balance between maximising your employees’ financial benefits and minimising your costs.

VWFS | Fleet can offer any make or model on salary sacrifice as a multi-brand provider.


How it works


Employees choose a safe, reliable, brand-new car from VWFS | Fleet via a pre-approved list every 3 – 4 years.

At the end of the contract, they can:

  • Exchange the car for a new one
  • Buy it at a competitive price
  • Hand it back


Deductions are made from the employees’ gross salary in return for the vehicle, and the lease agreement sits with the employer, but the vehicle is the employees’ to use.

As a result, the employees pay less Income Tax and National Insurance but will need to pay company car tax, also known as BiK on the vehicle.


Employees and employers can make significant savings, especially if a ULEV or EV is chosen:

The BiK on EVs is as low as 2% until the end of the 2024/25 tax year, rising by just 1% a year until 2027/28. and with the BiK payable on the taxable benefit of the vehicle, this makes EVs and Plug-in hybrids (PHEVs) a financially attractive proposition for employees.


Like a company car, we take care of the extras:

  • Insurance
  • Breakdown cover
  • Accident management
  • Servicing and maintenance
  • Tyres
  • Glass repair

All included in the monthly cost.


Because we know you’re busy, let our experts advise you:

We’ll set up your scheme to deliver the right mix of benefits and support you in explaining how it works clearly and simply to your employees.  To make things even simpler, everything is run through an easy-to-use online portal allowing drivers the functionality to place and even track their orders.

Benefits for all

Address grey fleet concerns

Salary Sacrifice will ensure:

  • Employers meet their duty of care requirements
  • Safe, reliable vehicles are adequately insured for business
  • Vehicles are fully maintained and serviced by main dealer networks

Reduce company emissions

Benefits of offering Ultra Low Emission Vehicles (ULEVs) on the scheme:

  • Help towards scope 2 and 3 net-zero business targets
  • Reduce grey fleet emissions
  • Attractive employee benefit with Benefit in Kind (BiK) savings

No extra administration

We’ll provide all the in-life management such as:

  • Insurance
  • Tyres
  • Maintenance and breakdown cover
  • Vehicle quoting and ordering
  • Employer invoicing

  • A premium employee benefit at minimal cost
  • Helps with staff recruitment and retention
  • No early termination fees
  • Significant Class 1A National Insurance savings
  • Employees driving newer, safer cars
  • Supports Corporate, Social, Responsibility (CSR) targets
  • Reducing grey fleet risk
  • Opportunity to measurably reduce employee emissions
  • 24/7 Breakdown and accident management services 

  • Roadside assistance covered
  • Insurance, road tax, maintenance and servicing costs are included
  • No upfront payment required
  • No hidden costs
  • No early termination cost penalty
  • Lifestyle protection against early termination (limitations may apply)
  • Your choice of a brand new car from any manufacturer
  • 24/7 driver support with our Driverline service

We’ve got you covered

Charge points

We’ll also support your employees who pick a ULEV with a discounted home charge point from our partner, and we can advise on your workplace charging plans.

24/7 driver support

We also offer peace of mind with our 24/7 Driverline service, providing fast issue resolution and reduced downtime whether at home, work or on the road.

Other support

We’ll even help you limit the risk if employees fall ill, take leave or cease employment with clearly defined contractual arrangements.

Here to help

Whether it’s planning or delivery, we can help with scheme design, the process behind it, and ongoing reporting. We can also answer any of the detailed questions you may have about Salary Sacrifice, along with supporting the implementation and explaining the scheme to your employees.

This article is not tax advice; seek advice from a certified tax practitioner if you need more information on employee or business taxation.