All images have been sourced from Volkswagen Press
The best Volkswagen to salary sacrifice depends on how you drive. The ID.3 Neo suits most commuters; the ID.Polo is Volkswagen's cheapest electric car from £23,945 but isn't yet on the scheme; the ID.7 Pro S offers the longest range at up to 437 miles WLTP, and the ID.4 and ID.5 add SUV space. Every pure-electric Volkswagen sits at 4% Benefit-in-Kind for 2026/27, so electric car salary sacrifice can cut the monthly cost of any of them.
Every Volkswagen, apart from the ID.Polo, is available through The Electric Car Scheme, and the lease cost comes out of gross pay before tax, so employees typically save 20-50% compared with a personal lease. Monthly costs are for a higher-rate (40%) taxpayer on a £65,000 salary, taken from The Electric Car Scheme’s quote tool. They include insurance, servicing, maintenance, breakdown cover and road tax (VED), and factor in Benefit-in-Kind tax.
What's the difference between the Volkswagen ID.3 and ID.3 Neo?
The Volkswagen ID.3 Neo is the current ID.3. It replaces the original car with a redesigned interior, physical controls in place of touch-sensitive sliders and up to 390 miles of WLTP range, and UK orders opened on 13 August 2026. The original (2020 to 2026) was praised for its dynamics and space but criticised for cheap plastics, glitchy software and fiddly touch sliders, all of which the Neo targets, and it's still available new and used.
What's New With the ID.3 Neo?
Each change below answers a criticism of the original.
Physical controls: the steering wheel and climate controls return, replacing the touch sliders
Interior: premium materials and a 12.9-inch screen, standard on the Life trim
One-pedal driving: brings the car to a complete stop without the brake
Vehicle-to-load: an optional adapter powers external devices at 3.6kW
Battery: a new 79kWh option charging at up to 183kW, plus updated Travel Assist
ID.3 Neo vs the MG4 and Renault Mégane E-Tech
Buyers usually compare the Neo with the MG4 and Renault Mégane E-Tech, and each leads on a different measure.
Price: the MG4 is typically the cheapest
Range: the Neo's 79kWh battery leads
Practicality: the Mégane E-Tech has the biggest boot and better-rated infotainment, and the Neo's 385 litres trails both rivals
ID.3 Neo Range, Charging and Tax
The Neo's three new batteries include a 79kWh version, the longest-range ID.3 Volkswagen has offered, and the Life 50kWh starts from £33,080 on the road. The table sets out power, range and charging for each.
| Battery | Power | WLTP range (up to) | Max DC charge rate | 10-80% charge time |
|---|---|---|---|---|
| 50kWh | 125kW (170PS) | 258 miles | 100kW | 24 minutes |
| 58kWh | 140kW (190PS) | 306 miles | 105kW | 26 minutes |
| 79kWh | 170kW (231PS) | 390 miles | 183kW | 29 minutes |
Benefit-in-Kind is 4% for 2026/27, against up to 37% for petrol and diesel. Every Neo version is listed by Volkswagen as eligible for the £1,500 Electric Car Grant under the £42,000 cap. For a higher-rate taxpayer on £65,000, the Life 50kWh costs £425 a month net, after £257 of Income Tax and National Insurance savings and including £70 of Benefit-in-Kind tax.
| Volkswagen ID.3 Neo Life 50kWh 5dr Auto (£65,000 salary, 40% taxpayer) | Per month |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £612 |
| Employee Income Tax savings | -£245 |
| Employee National Insurance savings | -£12 |
| Average Benefit-in-Kind tax over term | £70 |
| Net cost (what you pay) | £425 |
You can pay £425 per month for a Volkswagen ID.3 Neo Life 50kWh and save £257 on Income Tax and National Insurance with The Electric Car Scheme.
What Is the VW ID.Polo? Price, Range and Release Date
The ID.Polo is Volkswagen's most affordable electric car, with prices from £23,945 on the road. It's a front-wheel-drive supermini on the MEB+ platform, built as a purpose-built city car below the ID.3, and it previews the ID.EVERY1 concept while introducing Volkswagen's "Pure Positive" design language. Order books opened on 30 July 2026 with two launch editions, followed by the series Life and Style trims from 10 September 2026.
VW ID.Polo Range, Charging and Specs
Power: 116PS, 135PS or 211PS
Charging: DC at 90kW to 105kW, with 10-80% in around 24 minutes
Boot: 453 litres, bigger than the petrol Polo
Grant: the 52kWh 211PS version qualifies for the £1,500 Electric Car Grant
Inside, physical climate switches make a comeback alongside the 12.9-inch touchscreen. The Life trim includes parking sensors, a rear-view camera and wireless phone charging, and the Style trim adds matrix LED headlights, ambient lighting and 18-inch alloy wheels.
The ID.Polo GTI is Volkswagen's first fully electric GTI, with 226 PS (166kW), a 0-100km/h time of 6.8 seconds, and a front differential lock. German pre-sales are priced below €39,000, and the UK price, estimated at around £33,500, has not been confirmed.
It is not yet available to lease via The Electric Car Scheme, because providers need confirmed supply and pricing before a car joins. It sits in the 4% Benefit-in-Kind band for 2026/27, which on the £23,945 entry price is an estimated taxable benefit of around £958 a year. That's roughly £16 a month for a basic-rate taxpayer and £32 for a higher-rate taxpayer. These are estimates from list price, not a quote, so use the EV salary sacrifice calculator to price comparable cars such as the ID.3 Neo.
Salary Sacrifice a Volkswagen ID.4
The ID.4 is the SUV sibling of the ID.3, with 52kWh to 79kWh batteries, a WLTP range of 222 to 351 miles and a 543-litre boot that rises to 1,575 litres with the rear seats folded. Volkswagen has confirmed the ID.Tiguan will take over from the ID.4 and ID.5, with a full reveal due in October 2026 and a European launch expected in early 2027. The ID.4 remains available to order in the meantime. Drivers can also compare ID.4 alternatives.
On the road, the ID.4 offers smooth power delivery, an elevated driving position and a refined motorway cruise, with adaptive cruise control, lane assist and a driver fatigue alert standard on every trim. Trims run from the Pure Essential to the GTX Edition, with 170PS on the Pure and 286PS on the Pro Essential.
Volkswagen lists the Pure Essential, Pure Match and Pro Essential as eligible for the £1,500 Electric Car Grant under the £42,000 cap. At the same time, the Pro Match, Black Edition and GTX Edition are excluded. For a higher-rate taxpayer on £65,000, the ID.4 Match Pure 52kWh costs £474 a month net, after £282 of Income Tax and National Insurance savings and including £84 of Benefit-in-Kind tax.
| Volkswagen ID.4 Match Pure 52kWh 5dr Auto (£65,000 salary, 40% taxpayer) | Per month |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £673 |
| Employee Income Tax savings | -£269 |
| Employee National Insurance savings | -£13 |
| Average Benefit-in-Kind tax over term | £84 |
| Net cost (what you pay) | £474 |
Lease a Volkswagen ID.4 Match Pure for £474 per month and save £282 every month on Income Tax and National Insurance savings. These savings are a result of EV salary sacrifice.
Salary Sacrifice a Volkswagen ID.5
The Volkswagen ID.5 is the coupe-style version of the ID.4, with a sloping roofline that trims rear headroom for taller passengers and a 549-litre boot, six litres more than the ID.4. It's available as a Pure with a 58kWh battery or a Pro with a 79kWh battery, and a public 130kW charger takes it from 10% to 80% in around 30 minutes.
Surround parking sensors, a rearview camera, adaptive cruise control and lane assist come standard, and the 12.0-inch infotainment screen includes Apple CarPlay, Android Auto and sat nav. The ID.5 offers a 4% (2026/27) Benefit-in-Kind rate, and road tax (VED) is included in the monthly cost.
Volkswagen lists the ID.5 Pure and Pro as eligible for the £1,500 Electric Car Grant under the £42,000 cap. At the same time, the Pro Match, Pro Black Edition and GTX are excluded. For a higher-rate taxpayer on £65,000, the ID.5 Match Pure 58kWh costs £448 a month net, after £261 of Income Tax and National Insurance savings and including £87 of Benefit-in-Kind tax.
| Volkswagen ID.5 Match Pure 58kWh (£65,000 salary, 40% taxpayer) | Per month |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £622 |
| Employee Income Tax savings | -£249 |
| Employee National Insurance savings | -£12 |
| Average Benefit-in-Kind tax over term | £87 |
| Net cost (what you pay) | £448 |
Lease a Volkswagen ID.5 Match Pure for £448 per month and save £261 on Income Tax and National Insurance with The Electric Car Scheme.
Volkswagen ID.7 Available to Lease At The Electric Car Scheme
The ID.7 is Volkswagen's flagship electric car, a family saloon with a full-length smart glass roof, a 15.0-inch infotainment screen and an augmented reality head-up display as standard. The boot holds 532 litres, rising to 1,586 litres with the seats folded, and the ID.7 Tourer estate offers 605 litres, rising to 1,714 litres.
At speed, the ID.7 is quiet and comfortable, though climate control sits in the touchscreen because the hazard light button is the cabin's only physical switch. It offers up to 386 miles WLTP on the 77kWh Pro and up to 437 miles on the 86kWh Pro S, and DC charging at up to 175kW takes the battery from 10% to 80% in 28 minutes.
The ID.7 sits above the £42,000 Electric Car Grant cap, so it doesn't qualify. For a higher-rate taxpayer on £65,000, the Match Pro Plus 77kWh costs £610 a month net, after £363 of Income Tax and National Insurance savings and including £109 of Benefit-in-Kind tax.
| Volkswagen ID.7 Match Pro Plus 77kWh (£65,000 salary, 40% taxpayer) | Per month |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £865 |
| Employee Income Tax savings | -£346 |
| Employee National Insurance savings | -£17 |
| Average Benefit-in-Kind tax over term | £109 |
| Net cost (what you pay) | £610 |
Lease a Volkswagen ID.7 Match Pro Plus for £610 per month and save £363 on Income Tax and National Insurance through The Electric Car Scheme. You can browse all of the cars we have available to lease via our quote tool.
Salary Sacrifice a Volkswagen ID.Buzz
The ID. Buzz blends a multi-purpose vehicle with a van, with flat sides and a design that pays homage to the original T1. The 79kWh model offers up to 283 miles, while the long-wheelbase version adds an 86kWh battery, up to 293 miles, seating for up to seven and a 1,340-litre boot in five-seat mode. A GTX version adds 335bhp and all-wheel drive.
Almost five metres long, the Buzz drives smaller than it looks, with an 11.1-metre turning circle and extra cameras to help in tight spaces. The standard-wheelbase boot holds 1,121 litres, and the Buzz can be adapted for camping, though drivers who want a dedicated camper can compare electric camper vans.
DC charging at up to 170kW takes the Buzz from 10% to 80% in 30 minutes. It sits in the 4% Benefit-in-Kind band for 2026/27, and above the £42,000 cap for the Electric Car Grant. For a higher-rate taxpayer on £65,000, the Life Pro 79kWh six-seater costs £747 a month net, after £449 of Income Tax and National Insurance savings and including £126 of Benefit-in-Kind tax.
| Volkswagen ID.Buzz Life Pro 79kWh 5dr Auto (6 seat) (£65,000 salary, 40% taxpayer) | Per month |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £1,071 |
| Employee Income Tax savings | -£428 |
| Employee National Insurance savings | -£21 |
| Average Benefit-in-Kind tax over term | £126 |
| Net cost (what you pay) | £747 |
Volkswagen ID.Buzz is available to lease via The Electric Car Scheme for £747 per month for the Life Pro 79kWh six-seater, with £126 a month of Benefit-in-Kind tax factored into every quote.
Frequently Asked Questions
How Much Is the ID.3 Neo on Salary Sacrifice?
The ID.3 Neo Life 50kWh costs £425 a month net for a higher-rate taxpayer on a £65,000 salary. Your figure depends on salary, tax band, trim and battery size, and employees typically save 20-50% compared with a personal lease.
VW ID.3 Neo vs MG4: Which Should I Choose?
Choose the ID.3 Neo for range and the MG4 for price and boot space. The Neo reaches up to 390 miles WLTP, while the MG4 typically costs less and has a larger boot.
Which Volkswagens Qualify for the Electric Car Grant?
Selected ID.3 Neo, ID.4 and ID.5 versions and the 52kWh 211PS ID.Polo qualify for the £1,500 grant where the purchase price is under £42,000, while the ID.7 and ID.Buzz sit above that cap. The grant reduces the monthly cost on eligible cars.
Is the VW ID.Polo Available to Salary Sacrifice?
The VW ID.Polo isn’t available through The Electric Car Scheme yet. Providers need confirmed supply and pricing before a car joins a scheme, so check the quote tool for current availability. At 4% Benefit-in-Kind for 2026/27, it would sit in the same tax band as every pure-electric Volkswagen.
Is Volkswagen Replacing the ID.4?
Yes, Volkswagen has confirmed the ID. Tiguan will take over from the ID.4 and ID.5, with a full reveal due in October 2026 and a European launch expected in early 2027. The ID.4 remains available in the UK in the meantime.
The Electric Car Scheme is an employee car benefit scheme: your employer leases the car on your behalf, and you pay through gross pay, before tax. Benefit-in-Kind is set at 4% for the 2026/27 tax year and factored into your quote, so check out our EV salary sacrifice calculator to find your next car.
Benefit-in-Kind rates are set by HMRC and can change, and the savings shown are illustrative, based on a £65,000 salary and a 40% tax band. Read HMRC's guidance on tax on company benefits.
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Last updated: 06.09.2026
Information and prices provided are accurate at the time of release and may be subject to change. Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms: using a flat payment profile, 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions: England & Wales, 40% tax rate. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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