EV Salary Sacrifice Calculator Trending
Calculate savings from EV salary sacrifice. See tax/NI savings, BiK at 3% and effective monthly cost.
Last updated: April 2026 · Source: GOV.UK — Tax on company benefits
EV: 3% (2025/26)
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% (2025/26). 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 2025/26 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.
Example: £45,000 salary, Tesla Model 3, £450/month lease
- Monthly salary sacrifice: £450 (from gross pay)
- P11D value: £42,000
- BiK at 3% (2025/26): £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. All calculations are performed in your browser using official UK rates and thresholds.
- Is this calculator based on 2025/26 rates?
- Yes. This calculator uses the current 2025/26 UK tax year rates for income tax, National Insurance and other deductions, effective from 6 April 2025.
- Does this include pension contributions?
- This calculator can factor in workplace pension contributions. Under auto-enrolment, the minimum is 8% total (5% employee + 3% employer) of qualifying earnings.