Let your next car make you feel electric!
There’s never been a better time to go electric with only 2% company car tax until April 2025. Our Car Benefit Scheme is the most cost effective way to drive electric. The scheme is a salary sacrifice car scheme and so monthly reductions are taken from your salary so no need to set up any direct debits and no need to pay any deposit! With tax and National Insurance savings plus a comprehensive motoring package accompanying your brand new car, this really is a better way to drive electric!
Log in and view the cars available to see what savings you could make.
How does it work?
Like Cycle to Work and Childcare Voucher schemes, employees can offset some of their salary in exchange for a brand new fully insured and maintained car. It’s the new way to drive! Simply choose your car to meet your needs and let us take care of everything for you. With every type of car available, from high performance cars to the latest in electric vehicles and hybrids, we have something to suit everyone and we’ll support you 24/7, mile by mile.
Each of our cars comes complete with insurance, routine servicing, maintenance and repairs, annual road tax and RAC breakdown assistance. All you need to do is add fuel/electricity and top up any vehicle fluids listed in your vehicle handbook*. When you come to return your car, you simply hand it back subject to any excess mileage or vehicle damage costs.
*You’ll also need to pay any fines you incur.
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Once you’ve logged in, select the car you want and customise it, choose the length of the agreement and your expected annual mileage. Click ‘Order Now’ and we’ll send you your documents electronically for you to read through and sign.
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Your order will then be sent to your employer for approval. Once approved, we’ll order it, allocate a production slot and keep you updated with an approximate delivery date.
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Your chosen car will get built to your requirements and once this has been done, it’ll be delivered to your local dealer who will then get in touch with you to arrange a date from them to deliver your brand new car to a UK location of your choice!
How does Volkswagen Financial Services compare?
A great perk that means you can enjoy a nice new set of wheels without any deposit or ongoing running costs. The scheme includes road tax, insurance, MOTs, maintenance, accident management, breakdown assistance and routine repair bills.
It really is the easiest way to run a brand new car.
Log in and choose your car| Volkswagen Financial Services | |
|---|---|
| No upfront deposit | |
| Running costs included | |
| Car insurance | |
| Full RAC breakdown cover | |
| Routine service, repair and MOT | |
| Replacement tyres | |
| Tax savings available on electric cars | |
| Manufacturer and fleet discounts |
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Understanding Benefit in Kind Tax
When organisations provide a car as a benefit to their employees, HMRC class it as a Benefit in Kind (BiK). All taxable benefits have to be valued so HMRC can determine the correct amount of tax to be charged. As a result, this means that with our car benefit scheme, you will need to pay a Benefit in Kind (also known as company car tax). Some employee benefits have a specific value but with a car, the tax is based on the ‘use’ of the car so is calculated differently to other benefits. Our online quotation system will automatically calculate the correct BiK value of the car you’ve chosen based upon the CO2 emissions, additional options, fuel type, P11D value and applicable tax rate according to the salary you’ve entered in the system. It will also take into account whether or not the car is electric.
We’ll also display the ‘Monthly Net Amount’ (which is the impact on your take home salary) for the next three years as the tax rates charged by HMRC increase each year.
Frequently asked questions
No hidden fees, no deposit and only the best cars available. Drive your way to bigger savings today.
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How many makes and models are there?
There are hundreds available across all different makes and models. For electric cars, the number available continues to increase month by month and there are now electric cars in every style of vehicle from the supermini to the large SUV.
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Why choose a ULEV on the Car Benefit Scheme?
Choosing an electric or an ultra low emission car on a salary sacrifice scheme allows employees to make income tax and National Insurance savings as the monthly amount is taken from gross salary. Benefit in Kind will be 1% on pure electric vehicles in 2021-22 and lower new bands for cars below 75g/ km have also been introduced which lower the company car tax due.
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How long do I keep the car for?
You can choose to have the car from 2yrs up to 4yrs with no initial deposit or credit checks needed. At the end of the agreement, you can choose to exchange the car for a new one, purchase the car or simply hand it back.
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What if I leave my employer?
Your employer has lifestyle protections in place for the scheme so should you leave your organisation due to redundancy, resignation or long term sick, there'll be no early termination fee to pay for leaving the scheme early as long as you've had the car for an initial 3 month period. (For full details please check your scheme policy found once you have logged in).
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What are the benefits of salary sacrifice?
The main benefit is an inclusive motoring package and the ability to drive a brand new car which you might not otherwise be able to afford. With no deposit to pay, you also benefit from manufacturer and fleet discounts as well as tax savings for electric cars taken on the scheme.
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Are there any downsides to salary sacrifice?
As the scheme is classed as a benefit, drivers do have to pay a Benefit in Kind tax depending on the CO2 of the car so those cars with higher emissions will have a higher tax to pay. Once you agree to a car on the scheme, you're then signed up to the scheme for the duration of the agreement or until you leave your employer at which point you have to give the car back. Your net salary will also be lower which could affect your ability to get finance.