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 2020, benefit-in-kind tax (BiK) for zero-emission vehicles was reduced to zero 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.
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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 £3,000 per vehicle**. Our scheme is also carbon-neutral: every vehicle is carbon-offset, a great addition to your Corporate Social Responsibility (CSR) targets.
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
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.
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:
* This article is not tax advice; seek advice from a certified tax practitioner if you need more information on employee or business taxation
** OLEV grant provides 35% off the RRP of eligible zero-emission vehicles with a purchase less than £50,000, up to a maximum grant of £3,000.
† Limitations may apply