Volkswagen UK and VWFS help businesses and employees move towards a sustainable, cost-effective future. Their electric and hybrid cars are practical and reliable. A new salary sacrifice scheme from VWFS makes these vehicles more affordable and accessible for UK businesses and drivers. Businesses can contact VWFS to customise their fleet and benefit from tailored management services. This initiative is timely for those planning to go electric in 2026.
Why salary sacrifice?
Salary sacrifice lets employees exchange part of their gross salary for a non-cash benefit – in this case, a brand-new electric or plug-in hybrid car. This delivers significant financial advantages for both employers and employees:
- Tax efficiency: electric vehicles (EVs) currently attract a benefit-in-kind (BIK) rate of just three per cent – significantly lower than the 30 per cent rate applicable to many petrol and diesel cars. Plug-in hybrid electric vehicles (PHEVs) with low CO₂ emissions also enjoy the advantage of low BIK rates.
- National Insurance savings: Businesses can usually save £80 to £100 per employee each month on Class 1A National Insurance contributions, while employees benefit from lower National Insurance deductions (depending on circumstances). Many companies use their savings to reduce the overall cost of car rentals for their staff.
- Cost-neutral for employers: VWFS manages setup, compliance, insurance, servicing, maintenance, breakdown cover, and 24-hour Driverline support, reducing administrative tasks. Some upgrades or extra features may cost more; businesses should discuss potential expenses with VWFS to assess risks.
- Driving sustainability: the scheme supports corporate environmental, social, and governance (ESG) goals by encouraging low-emission travel. With the UK’s 2030 ban on selling new petrol and diesel cars approaching, salary sacrifice is a practical step towards achieving net-zero targets.
- Attract top talent: the boost in employee benefits helps companies to attract, reward and retain staff
Employee benefits
Employees still need to pay company car tax, but they gain access to a fully inclusive package from VWFS with:
- No upfront payment or credit checks
- Class-leading lifestyle support to cover unforeseen changes such as redundancy or long-term illness, ensuring that employees are not left at a disadvantage if their circumstances change. This support includes easy vehicle transfer or cancellation options without penalty, providing peace of mind for both the employee and the employer.
- Affordable monthly payments are taken from an employee’s gross salary, making EV ownership tax-efficient and easier than ever
Volkswagen’s award-winning electric and plug-in hybrid range
Volkswagen – the UK’s top-selling car brand since 2021 – provides a wide range of electric and hybrid models to fit all lifestyles, including business users.
From the compact ID.3 to the versatile ID.4, elegant ID.5, and the spacious ID.7 and ID.7 Tourer, Volkswagen’s all-electric range blends advanced technology with reliable performance.
The ID.7 models in particular are popular among company car drivers, offering supreme comfort, an impressive range of up to 433 miles (WLTP combined), and fast charging at up to 200 kw. Charging from 10 to 80 per cent can take as little as 26 minutes – ideal for short breaks on long journeys.
The Volkswagen Golf, Tiguan, and Passat eHybrid models can provide up to 88 miles of electric-only range, extremely low CO₂ emissions, and rapid charging capabilities. These vehicles effortlessly combine electric power for everyday travel with petrol confidence for longer journeys, offering flexibility without sacrificing performance.
The ID.7 Tourer was named Best Electric Estate and Best Large Family Car this year by What Car? and Parkers, respectively, while the ID.7 fastback model won Best EV at the Leasing.com Awards, and the ID.4 was named Electric Car of the Year at the Fleet Procure Awards. The Golf eHybrid was named Best Hybrid by both Autocar and Cinch this year.
Why choose Volkswagen Financial Services?
- Expert support and a dedicated online portal for easy scheme management
- Flexible contracts and access to the latest EV and PHEV models
- Financial support is available through grants and reimbursements for home chargers, making it easier for employees to install EV charging points at home. Additionally, discounts are offered for on-the-road EV charge cards, which can be used at various charging stations across the UK. Eligibility for these benefits includes employees participating in the VWFS salary sacrifice scheme, ensuring they can fully benefit from the financial support available for their electric vehicles.
FAQ’s…
What are the financial benefits of using salary sacrifice for electric or hybrid company cars?
Salary sacrifice for electric or hybrid vehicles offers tax efficiency with benefits-in-kind rates as low as three percent for EVs, and potential National Insurance savings for both businesses and employees, making vehicle ownership more affordable.
How does the salary sacrifice scheme support businesses in achieving their sustainability goals?
The scheme promotes low-emission travel by encouraging the use of electric and hybrid vehicles, helping businesses meet their environmental, social, and governance objectives, especially in light of the UK’s 2030 ban on new petrol and diesel car sales.
What advantages do employees gain from participating in the Volkswagen salary sacrifice scheme?
Employees benefit from an inclusive package with no upfront payment or credit checks, flexible vehicle transfer or cancellation options, and affordable monthly payments taken from gross salary, simplifying access to EV ownership.
What types of vehicles does Volkswagen offer for business users, and what are their features?
Volkswagen provides a range of electric and hybrid models such as the ID.3, ID.4, ID.5, ID.7, Golf eHybrid, Tiguan eHybrid, and Passat eHybrid, known for their reliability, long ranges, rapid charging capabilities, and low emissions, suitable for various lifestyles and business needs.
Why choose Volkswagen Financial Services for corporate electric vehicle schemes?
Volkswagen Financial Services offers expert support, a dedicated portal for scheme management, flexible contracts, access to the latest EV models, and financial assistance for home chargers and charging cards, ensuring comprehensive support for businesses and employees.
You can also visit https://www.volkswagen.co.uk/en.html for more about Volkswagen cars and https://www2.vwfsfleet.co.uk/ev-salary-sacrifice for more about the VWFS salary sacrifice car scheme.
