Salary Sacrifice EV Full Model Calculator 2026/27

Full economic model of EV salary sacrifice - lease cost + tax saving via sacrifice + BIK 4% cost + Employer NI saving.

EV models + cost scenarios

EV modelAnnual leaseTax saving from sacrificeBIK income taxNet annual cost
Tesla Model 3£6,600£2,772£720£4,548
Polestar 2£7,440£3,125£800£5,115
Audi Q4 e-tron£8,160£3,835£990£5,315
Tesla Model Y£8,400£3,528£880£5,752
Volvo EX30£5,040£2,117£560£3,483

Frequently asked questions

How does EV salary sacrifice work?

Employer leases car. Employee sacrifices salary in exchange. Saves Income Tax + Employee NI on sacrificed amount. BIK 4% on car value taxed. Employer saves 15% Employer NI on sacrificed amount.

BIK rate 4%

2026/27 EV BIK 4%. Rising to 5% (2027/28), 6% (2028/29), 7% (2029/30). Still well below petrol/diesel 25-37%.

Net cost saving vs lease

Typical 30-50% saving vs personal lease for higher-rate employee. Bigger for additional rate.

EV charging at home

Employer-provided home charger - capital expense, possibly BIK if for personal use too. Workplace charging exempt.

Mileage allowance

EV business miles 5p / mile via AMAP. Employer can pay this tax-free. Personal use considered in BIK calculation.

EV Company Car Tax calc | BIK Complete guide

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