Overview of EV salary sacrifice
How salary sacrifice schemes let you lease a brand-new electric car through your employer with savings of 30–60% compared to personal leasing, thanks to tax and NI benefits.
How salary sacrifice works
The mechanics of salary sacrifice — how your gross pay is reduced, how BIK tax applies at just 2–3%, and why it’s so much cheaper than buying or leasing privately.
How much can you save?
Real-world savings examples across different salary bands and tax rates, showing monthly costs for popular EVs through salary sacrifice versus personal finance.
Eligible cars & providers
Which electric cars are available through salary sacrifice, the main scheme providers (Octopus Electric Vehicles, Tusker, Loveelectric, The Electric Car Scheme) and how they compare.
What’s included in the package
What a typical salary sacrifice package covers — insurance, maintenance, breakdown, tyres, road tax and whether home charger installation is included.
Tax & BIK rates explained
Current benefit-in-kind rates for electric cars, how they compare to petrol and diesel company cars, and the confirmed BIK trajectory through to 2028.
For employees: getting started
How to check if your employer offers salary sacrifice, what to do if they don’t, and how to request a scheme — including a template letter for your HR team.
For employers: setting up a scheme
How employers can set up an EV salary sacrifice scheme, the NI savings for the business, provider options, and what HR and payroll changes are needed.
Risks & things to watch
Early termination fees, what happens if you leave your job, the impact on pension contributions and student loan thresholds, and insurance excess responsibilities.
EV salary sacrifice calculator
Use our calculator to estimate your monthly cost and total saving for any electric car through salary sacrifice, based on your salary, tax band and chosen vehicle.