Salary Sacrifice Calculator
Calculate your exact net cost and tax savings for any electric vehicle through salary sacrifice
Your Details
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Based on your £35,000 salary. You can manually change if needed.
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How the calculation works
Salary Sacrifice: You exchange part of your gross salary for the EV lease cost, which reduces your taxable income before tax and National Insurance are calculated.
Tax & NI Savings: Because the exchange happens before tax, you save both income tax (20%, 40%, or 45%) and employee NI (12%) on the sacrificed amount.
BiK Tax: You pay Benefit-in-Kind tax on the car at 2% of the P11D value (list price). This low rate is locked until 2028 for electric vehicles.
Net Cost: Monthly lease cost - Tax savings - NI savings + BiK tax = Your actual monthly cost
What's Included?
- • Comprehensive insurance
- • All maintenance & servicing
- • Breakdown cover
- • Road tax (£0 for EVs)
- • Home charger (usually)
- • Tyre replacement
Typical Savings
- • 20% tax band: 30-35% saving
- • 40% tax band: 45-50% saving
- • 45% tax band: 50-60% saving
- • Plus employer NI savings
Important Notes
- • Must stay above minimum wage
- • Reduces pensionable salary
- • Typically 2-4 year commitment
- • May affect mortgage applications