Olive Green Škoda Enyaq and Race Blue Elroq back to back in a forest setting

Škoda. Available via salary sacrifice.

Find out how salary sacrifice works – and what it means for you.

Leasing a new, fully maintained EV through salary sacrifice is more popular than ever – among fleet decision-makers and employees. So, if you’re looking to learn more about this compelling employee benefit, you’ve come to the right place…

Here’s how it works…

Employees with access to a salary sacrifice scheme choose a vehicle, annual mileage and lease length.

Payment for the vehicle is deducted each month from your gross, or pre-tax, salary – reducing your taxable income and, typically, the amount of income tax and National Insurance you pay on your monthly earnings.

You’ll have to pay company car tax (Benefit-in-Kind, or BiK) in return. But EVs qualify for just 4% BiK in 2026/27, creating potential savings overall.

How much you could save depends on:

Your monthly salary (pre-tax)
Your income tax rate
The monthly vehicle rental
The vehicle’s value, or P11D price
Associated company car tax

It’s not just employees who stand to benefit either. Employers can too. For each employee leasing via salary sacrifice, businesses pay a reduced rate of employers’ National Insurance Contributions (NICs), while also progressing their electrification plans.

I’m an employer

There are plenty of reasons businesses make EVs available to employees via salary sacrifice, all of which contribute to wider business goals or initiatives:

Tax saving opportunities

As employees pay for the lease from their pre-tax salary, their taxable income is reduced. This can also lower the amount your business pays in employers’ NICs.

Talent attraction and retention

Access to a new EV, with potential tax savings, is a highly desirable work perk – meaning these schemes can support your talent attraction and retention strategy.

Emissions reduction targets

EVs have the potential to reduce your reportable emissions and contribute to corporate social responsibility (CSR) targets.

Duty of Care

Providing new cars with the latest safety tech can help you meet Duty of Care obligations to your staff, whether they’re commuting or travelling for work purposes, alongside reducing ‘grey fleet’ administration.

Download guide

I’m an employee

Alongside access to a new EV, salary sacrifice schemes can deliver other benefits:

Potential tax savings

With monthly payments made directly from your salary before tax, salary sacrifice could reduce your income tax and NI liability. In some cases, it can lead to savings of up to 40% of the amount ‘sacrificed’ to pay for the vehicle lease.

One monthly payment

Insurance, road tax, maintenance, servicing and roadside assistance can all be included when leasing via salary sacrifice – streamlining the number of payments you have to budget for each month.

Download guide

Our electric range

Premium, practical and packed with advanced tech as standard. The multi-award-winning Škoda Elroq and Škoda Enyaq are available via salary sacrifice and perfect for balancing the demands of work and family life.

Škoda Enyaq

Autocar - 4*

WhatCar? - 4*

Top Gear - 8/10

Explore Enyaq

Škoda Elroq

Autocar - 4.5*

WhatCar? - 5*

TopGear - 8/10

Explore Elroq

Take the next step

Ready to unlock the benefits of salary sacrifice? Request a 30-minute appointment with the Volkswagen Financial Services Salary Sacrifice team, who are on hand to answer any questions and set up a scheme for your business.

Request appointment