EV salary sacrifice calculator
An electric car through salary sacrifice costs far less than the headline figure, because it comes out of gross pay. The benefit-in-kind charge takes some of it back.
How this is calculated
The sacrifice comes out of gross pay, so it reduces income tax, National Insurance and any student loan repayment. Your take-home therefore falls by considerably less than the gross figure.
Against that, having a company car creates a benefit-in-kind charge. For a zero-emission car that is 4% of the P11D value in 2026/27, taxed at your marginal rate.
Net cost is the drop in take-home plus the tax on the benefit. That is the number to compare against a personal lease.
The comparison usually favours sacrifice for a higher rate taxpayer and is closer for a basic rate one, because the tax saved scales with your marginal rate while the benefit charge is comparatively small.
Rates used · 2026/27
| EV benefit-in-kind 2026/27 | 4% |
| 2027/28 | 5% |
| 2028/29 | 7% |
| 2029/30 | 9% |
| Petrol and diesel | 25% to 37% |
| Capital contribution | reduces P11D by up to £5,000 |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
On £55,000, sacrificing £500 a month is £6,000 a year but take-home only falls by £3,658, because £2,342 of tax and National Insurance is saved. The 4% benefit-in-kind charge on a £38,000 car adds £304 of tax. Net cost is £330 a month, £120 less than a £450 personal lease.
Common questions
What is the catch?
Your gross salary is genuinely lower for the term, which affects mortgage affordability, pension contributions based on salary, and statutory maternity or redundancy pay. Leaving the employer during the agreement usually triggers an early termination charge too.
Why is the benefit-in-kind rate rising?
It was held at very low levels to encourage adoption and is now on a published path to 9% by 2029/30. A car taken on a four year term today will cost more in benefit tax by the end of it.
Does it include insurance and servicing?
Most schemes bundle insurance, servicing, tyres and breakdown into the monthly figure, which a personal lease usually does not. Check what is included before comparing the two.
Is it worth it on a basic rate salary?
Less compelling than at higher rate, because the tax saved is smaller while the benefit charge is the same. Run it against a personal lease before assuming.