Offer a salary sacrifice car scheme as an all-employee benefit

There has never been a better time to consider a salary sacrifice car scheme as an employee benefit for your business. From 6 April 2021, benefit-in-kind tax (BiK) for zero-emissions vehicles is set at one per cent, providing a powerful incentive for company car drivers to switch to electric vehicles. But it's not just for EVs, all vehicles can benefit from this great opportunity, at minimal cost to your business.

Choosing salary sacrifice from Volkswagen Financial Services | Fleet means that by simply agreeing to a reduction in their gross salary in return for the use of a non-cash benefit, your employees get a brand-new car with all the running and maintenance costs included. There are tax-relief advantages for your business, too*. It's a great way to offer all the benefits of a company car to employees who wouldn't normally qualify.

Enquire about Salary Sacrifice

Even bigger savings for electric vehicles

Salary sacrifice is available for any make or model of vehicle, but it works best for ultra-low emission vehicles (ULEVs) with CO2 emissions of 75g/km or less. Pure electric vehicles offer the greatest BiK and National Insurance savings for employees and businesses, whilst also benefitting from the Government plug-in car grant, worth up to £1,500 per vehicle**. Our scheme is also carbon-neutral: every vehicle is carbon-offset, a great addition to your Corporate Social Responsibility (CSR) targets.

How it works


The employee can choose a safe, reliable new car from an approved list every 3-4 years and at the end of the contract they can:

  • Exchange the car for a new one
  • Buy it at a competitive rate
  • Simply hand it back

Your business can make savings, especially if employees take a ULEV:

Like Cycle to Work, childcare vouchers and corporate healthcare schemes, employees cover the car cost by agreeing to a reduction in their gross salary in exchange for the benefit of a car, offering the potential for significant savings in National Insurance and Income Tax.*

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

  • Insurance
  • Breakdown cover
  • Accident management
  • Servicing
  • Tyres
  • Lifestyle protection against early termination costs†
All these are included in the price, so nothing to worry about (for you and your employees).

Because we know you're busy, our experts can advise you on all the key choices:

We will set up your scheme to deliver the right mix of benefits, and help you explain the scheme clearly and simply to your employees - we can even give them unbiased advice on which car to choose, and run the whole thing through a straightforward online portal.

Employer benefits:

Minimal cost to the employer and no early termination fees†

National Insurance savings, with significant tax relief for electric vehicles*

Low risk; excellent risk protection included as standard

Newer, safer cars that help to reduce Grey Fleet risk and support CSR targets

Employee benefits:

A brand-new car with a choice of mileage and lease terms

Income tax and National Insurance savings*, subject to vehicle choice

All running and maintenance costs are included, and benefit from the same tax savings*

No upfront costs, deposit payments or credit checks required

Protection for you and your employees

Salary sacrifice car schemes can form a valuable part of staff recruitment and retention packages. Every vehicle comes with a risk protection package: if an employee needs to return the vehicle before the end of its contract, you won’t pay early termination fees†.

It’s never been easier or more cost-effective to make electric vehicle adoption a reality within your business. If you’re interested in finding out more about how to offer salary sacrifice as an employee benefit, then why not get in touch with our expert team; simply send us your details and we’ll be in touch.

How does an EV Work

Here to help

First of all we’ll listen, and come up with the right setup and delivery to increase the benefits that mean the most to you:

  • Striking the right balance between maximising financial benefits for employees and minimising your costs

  • Choosing the most appropriate vehicle options to offer your staff

  • Defining contractual arrangements to limit risk should workers take maternity leave, fall ill or leave their employment

  • Support with implementation and explaining and communicating the scheme to employees

* This article is not tax advice; seek advice from a certified tax practitioner if you need more information on employee or business taxation
** OZEV grant provides 35% off the RRP of eligible zero-emission vehicles with a purchase price less than £32,000, up to a maximum grant of £1,500.
† Limitations may apply