Volkswagen's UK salary sacrifice scheme makes EVs and hybrids affordable

Volkswagen has launched a salary sacrifice program in the UK that lets employees access a car by giving up a portion of their pre-tax pay. Managed through Volkswagen Financial Services, the initiative is aimed squarely at promoting hybrids and fully electric models.

The mechanics are straightforward: the vehicle is arranged via the employer, and monthly payments are taken from gross salary, lowering taxable income and trimming income tax. In Britain, the benefit-in-kind tax for electric cars and hybrids can be as low as around 3%, while petrol models can climb to 30% and beyond. With that contrast, the monthly arithmetic naturally tilts in favor of electrified options.

The scheme extends beyond Volkswagen’s own lineup to include other brands that meet CO2 emission limits, with the BMW iX1 and Tesla Model 3 among the available choices. The offer bundles servicing, repairs, tire replacement and insurance, and it includes support if an employee changes jobs. Aimed at those eyeing new 2026 cars with an emphasis on cleaner powertrains, the package removes several friction points at once—predictability becomes the main draw.