Salary Sacrifice EV Full Model Calculator 2026/27
UK EV salary sacrifice full model 2026/27 - lease cost via salary sacrifice + BIK 4% + Employer NI 15% saving + pension stack. Octopus EV / Tusker / OnTo schemes.
Full economic model of EV salary sacrifice - lease cost + tax saving via sacrifice + BIK 4% cost + Employer NI saving.
EV models + cost scenarios
| EV model | Annual lease | Tax saving from sacrifice | BIK income tax | Net 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. Benefit in Kind (BIK) 4% on car value taxed. Employer saves 15% Employer NI on sacrificed amount.
What is the electric-car benefit-in-kind rate for 2026/27?
2026/27 EV BIK 4%. Rising to 5% (2027/28), 6% (2028/29), 7% (2029/30). Still well below petrol/diesel 25-37%.
How much does an EV salary sacrifice save against a personal lease?
Typical 30-50% saving vs personal lease for higher-rate employee. Bigger for additional rate.
Is employer-provided home EV charging taxable?
Employer-provided home charger - capital expense, possibly BIK if for personal use too. Workplace charging exempt.
What mileage rate applies to business miles in an electric car?
EV business miles 5p / mile via Approved Mileage Allowance Payments (AMAP). Employer can pay this tax-free. Personal use considered in BIK calculation.