EV vs Petrol Salary Sacrifice Comparison
Enter the details for both an electric and a petrol car to see a side-by-side comparison of the net monthly cost through salary sacrifice. The difference in BIK tax rates makes EVs significantly cheaper.
Frequently asked questions
Why is an EV cheaper through salary sacrifice even when the lease is more expensive?
The BIK tax rate for EVs is just 2% of the P11D value, compared to 15-37% for petrol cars depending on CO2 emissions. This means the tax clawback (BIK) is tiny for EVs, so almost all of the income tax and NI savings flow through to you. A petrol car with a lower gross lease can end up costing more after tax.
Does this comparison include fuel savings?
No. This calculator only compares the salary sacrifice net cost (lease, tax relief, and BIK). Electricity is significantly cheaper per mile than petrol — typically 4-6p/mile vs 14-18p/mile — so the total cost advantage of an EV is even larger than shown here.
What if the petrol car has lower CO2 emissions?
Lower CO2 reduces the petrol car's BIK rate, narrowing the gap. But even mild hybrids at 100 g/km face a BIK rate of 18% vs 2% for an EV. The EV advantage only disappears for PHEVs with over 130 miles electric range, which also qualify for the 2% rate.
Should I always choose the EV option?
From a pure cost perspective through salary sacrifice, EVs almost always win due to the BIK advantage. But consider your driving patterns, access to charging (home or workplace), and whether the available EV models meet your practical needs.
Will the EV BIK advantage last?
The government has confirmed BIK rates through 2028/29: 2% for 2025/26 and 2026/27, rising to 3% in 2027/28 and 4% in 2028/29. Even at 4%, EVs remain far cheaper than petrol through salary sacrifice. Rates beyond 2028/29 have not been announced.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.