Salary Sacrifice EV Calculator
Enter your gross salary, monthly lease cost, and car details to see exactly what a salary sacrifice EV scheme costs after tax relief, NI savings, and benefit-in-kind tax.
Frequently asked questions
What is salary sacrifice for an EV?
Your employer leases an electric car and deducts the cost from your gross (pre-tax) salary. Because the deduction happens before income tax and National Insurance, you pay less than if you leased privately. For EVs the benefit-in-kind rate is just 2% in 2026/27, making it extremely tax-efficient.
How much can I save with salary sacrifice?
A higher-rate taxpayer typically saves 40-50% compared to a personal lease. A basic-rate taxpayer saves around 30-35%. The exact saving depends on your salary, the car's P11D value, and CO2 emissions.
Does salary sacrifice reduce my pension contributions?
If your pension is calculated on your pre-sacrifice salary (known as a salary reference scheme), there is no impact. Check with your employer — most large schemes protect pension contributions from salary sacrifice.
What happens if I leave my job during a salary sacrifice lease?
You typically have three options: transfer the lease to a new employer, take over the lease personally (at a higher cost since you lose the tax benefit), or make an early termination payment. The exact terms depend on your employer's scheme.
Can I salary-sacrifice a used car?
No. HMRC salary sacrifice rules require the vehicle to be a new car ordered through the employer's leasing provider. Used or pre-registered vehicles are not eligible.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.