Electric Car Salary Sacrifice Calculator
Turn the gross deduction on an employer EV quote into its real monthly cost after PAYE, National Insurance, student loan and company-car Benefit in Kind. Then compare it with a personal lease paid from net salary.
Use the gross deduction and P11D list price shown in your employer quote. Compare it with a like-for-like personal lease paid from net pay.
Include insurance and maintenance if they are included in the scheme quote.
Like-for-like verdict
£3,584 cheaper per year
Scheme net cost £401/month versus £700/month paid from net salary.
Real Monthly Cost
£401Tax, NI & Loan Saving
£2,384After EV BIK tax
Taxable EV Benefit
£1,6004% BIK · £640 tax
Adjusted Net Income
£54,400Cash salary after sacrifice + BIK
What the comparison includes
Payroll tax saved
PAYE and employee NI are recalculated on the lower cash salary, using the selected UK tax region.
Student loan effect
Plan 1, 2, 4, 5 and postgraduate deductions use post-sacrifice payroll earnings.
EV Benefit in Kind
The P11D price is multiplied by the tax-year EV rate, then added to taxable income rather than cash pay.
Important limits
Cars with CO₂ emissions of 75g/km or less remain outside the normal OpRA higher-of test, so the ordinary company-car cash equivalent applies. Salary sacrifice still cannot reduce minimum-wage pay below the legal floor.
The personal-lease comparison is only meaningful when both quotes cover the same insurance, maintenance, tyres, mileage and early-termination protection. It does not value pension or statutory-pay effects created by a lower contractual salary.
Frequently asked questions
How is an electric car salary sacrifice calculated?
Your gross salary is reduced by the lease deduction, lowering PAYE, employee National Insurance and usually student-loan deductions. A separate Benefit in Kind charge is based on the EV's P11D list price and the relevant electric-car BIK rate.
What is the electric company car BIK rate for 2026/27?
The zero-emission company car appropriate percentage is 4% for 2026/27, up from 3% in 2025/26. The taxable benefit is the P11D list price multiplied by that percentage.
Can EV salary sacrifice restore my Personal Allowance?
It can reduce adjusted net income, but the EV Benefit in Kind is added back. The calculator shows cash salary after sacrifice plus the taxable EV benefit so you can see whether the result falls below £100,000.
Can salary sacrifice take pay below minimum wage?
No. An employer must not allow salary sacrifice to reduce pay used for National Minimum Wage purposes below the applicable hourly rate. This calculator provides an indicative age-21+ check using contracted hours.