EV Salary Sacrifice Calculator Trending
Calculate savings from EV salary sacrifice. See tax/NI savings, BiK at 3% and effective monthly cost.
Source: GOV.UK — Tax on company benefits
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
EV: 3% (2026/27)
Net Monthly Cost (after tax/NI savings)
£717.50
vs £972.22/month gross sacrifice
Tax Saved/Year
£2,333.33
NI Saved/Year
£933.33
BiK Tax/Month
£17.50
Effective Cost (36mo)
£25,830.00
EV salary sacrifice: lease an electric car through your employer, saving income tax and NI. BiK rate for EVs is just 3% (2026/27). Includes insurance, servicing, breakdown cover and tyres. One of the most tax-efficient employee benefits.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
An EV salary sacrifice scheme lets you lease an electric car through your employer, paying from your gross salary before tax and National Insurance. The Benefit in Kind (BiK) rate for pure electric vehicles is just 2% for 2024/25, rising to 3% for 2026/27 and 4% for 2026/27. This makes salary sacrifice one of the cheapest ways to drive a new EV.
The saving works because you avoid income tax and NI on the sacrificed salary, and the BiK tax on the EV is minimal. A higher-rate taxpayer can save 40-50% compared to leasing the same car personally. The scheme typically includes insurance, maintenance, breakdown cover and tyres in one monthly payment.
This calculator compares the net cost of leasing an EV through salary sacrifice versus a personal lease or PCP deal. It shows the BiK tax payable, the tax and NI savings, and the effective monthly cost. Most schemes require a minimum contract of 2-4 years.
Why EV salary sacrifice is the best UK perk in 2026. BiK rate for pure electric vehicles: 3% in 2026/27 (was 2% to April 2025), rising 1% per year to 7% by 2030. On a £50,000 Tesla Model 3 at 3% BiK: £1,500 BiK value × 40% income tax = £600/year tax. Plus £255 employee NI (8% on first £24k of sacrifice, 2% above). Total annual tax cost: £855. The same £50k taken as salary would attract £25k+ in tax.
How EV salary sacrifice works mechanically. You sacrifice gross salary in exchange for a fully insured, serviced, maintained EV. Typically 3-4 year lease. Monthly cost on payslip: list price ÷ months × (1 - tax_savings). On £50k EV, £700/month gross lease cost, but only £400-£500 net cost to higher-rate taxpayer after income tax + NI + BiK tax. Often cheaper than personal car finance for any similar vehicle.
Compared to personal car ownership. Personal car finance on £50k EV: ~£800/month + insurance £700/year + servicing/MOT/breakdown £500/year + depreciation risk. Salary sacrifice: £400-£500/month all-in, no insurance/servicing/MOT/breakdown to pay (included), no depreciation risk (return at end). Catch: you don't own at end. Trade-off: cash + ownership vs perk + flexibility.
Things to watch in EV salary sacrifice. (1) Minimum Wage floor — sacrifice cannot take you below £12.71/hr × hours; (2) Termination — leaving employer typically requires paying off remaining lease (some employers cover); (3) Cars over £40k attract £410/year 'expensive car supplement' for years 2-6 (now applies to EVs since April 2025); (4) Future BiK rises — rate will be 7% by 2030; (5) Family use — partner/family can drive the company car (becomes BiK for primary employee).
Example: £45,000 salary, Tesla Model 3, £450/month lease
- Monthly salary sacrifice: £450 (from gross pay)
- P11D value: £42,000
- BiK at 3% (2026/27): £42,000 x 3% = £1,260/year
- BiK tax at 40%: £504/year (£42/month)
- Income tax saving: £450 x 40% = £180/month
- NI saving: £450 x 8% = £36/month
- Net monthly cost: £450 - £180 - £36 + £42 = £276
Source: GOV.UK — Tax on company benefits
Frequently Asked Questions
- What does the EV Salary Sacrifice Calculator do?
- Calculate savings from EV salary sacrifice. See tax/NI savings, BiK at 3% and effective monthly cost.
- Why EV salary sacrifice is the best UK perk 2026.
- BiK rate for pure electric vehicles: 3% in 2026/27 (rising 1% per year to 7% by 2030). On a £50,000 EV at 3% BiK: £1,500 BiK value × 40% income tax = £600/year tax. Same £50k as salary would attract £25k+ in tax — massive saving.
- How salary sacrifice EV works.
- Sacrifice gross salary for fully insured/serviced/maintained EV (3-4 year lease). Monthly cost on payslip: ~£700/month gross lease, but only £400-£500 NET cost to higher-rate taxpayer after IT + NI + BiK tax. Often cheaper than personal car finance for any similar vehicle. No insurance, servicing, or MOT to pay.
- Things to watch.
- (1) NMW floor — sacrifice cannot take you below £12.71/hr × hours; (2) Leaving employer typically requires paying off remaining lease; (3) Cars over £40k attract £410/year 'expensive car supplement' for years 2-6 (now applies to EVs from April 2025); (4) Future BiK rises — 7% by 2030; (5) Family use — partner/family can drive (becomes BiK for primary employee).