Salary Sacrifice on the Rise – But Don’t Overlook the Power of Affinity

With salary sacrifice schemes expected to play a significant role in employee benefits in 2025, as reported by Fleet News, it’s clear that employers are looking for smarter, more sustainable ways to support staff mobility, particularly when it comes to electric vehicles (EVs). But while salary sacrifice remains a good option, it isn’t the only route to better employee access to vehicles.

At VPS, we believe Affinity schemes deserve just as much airtime—and here’s why.

A Different, More Flexible Channel

Salary sacrifice is tax-efficient, yes—but it only works for certain employees (those with enough gross salary) and is typically restricted to ultra-low emission vehicles (ULEVs) due to the CO2 thresholds. That means it often doesn’t work for all job types or personal preferences.

Affinity schemes, like those managed by us at VPS, offer a no-BIK alternative. They’re open to all fuel types (petrol, diesel, hybrid, EV), with no impact on payroll or salary deductions. Employees can access exclusive discounts on new cars simply by being part of an eligible organisation or group—without the limited choice or eligibility barriers of salary sacrifice.

Why OEMs Are Turning to VPS Affinity

1. Incremental sales through a new channel – Direct access to engaged, employed audiences, raising awareness and brand visibility

2. No discount dilution – Offers are targeted and controlled, separate from traditional retail or fleet channels

3. Fully managed – VPS provides a complete technical solution and handles everything from scheme setup and marketing to comms and dealer engagement, reducing internal resource burden

4. Greater customer loyalty – Drivers feel they’re getting an exclusive perk, creating stronger brand affiliation

5. All fuel types supported – OEMs can promote full range line-ups (ICE, hybrid, EV) without BIK restrictions

In Summary

Salary sacrifice schemes are a great tool for offering tax-efficient access to EVs—but they’re not a one-size-fits-all solution. VPS Affinity schemes provide an accessible, flexible and inclusive alternative route that Automotive manufacturers can offer to select organisations alongside salary sacrifice, expanding choice for employees and boosting your organisation’s overall benefits offering.

References: Fleet News