How Much Can I Save with EV Salary Sacrifice? Real Examples

How Much Can You Save with EV Salary Sacrifice?

The biggest question: "How much will I actually save?"

Answer: Typically 30-60% compared to personal leasing, depending on your salary.

The Savings Formula

Savings come from:

1. Income Tax - Don't pay tax on lease amount
2. National Insurance - Don't pay NI on lease amount
3. Low BiK Tax - EVs have just 2% BiK rate

UK Tax Rates 2025/26

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Example 1: £30,000 Salary

MG4 EV (£29,000 P11D)

Personal Lease: £350/month

Via Salary Sacrifice:

• Pre-tax cost: £350
• Tax saved: £70 (20%)
• NI saved: £42 (12%)
• BiK tax: -£9.67/month
• Net cost: £247.67

Save £102/month (29%) = £1,228/year

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Example 2: £50,000 Salary

Tesla Model 3 (£44,990 P11D)

Personal Lease: £550/month

Via Salary Sacrifice:

• Pre-tax cost: £550
• Tax saved: £110 (20%)
• NI saved: £66 (12%)
• BiK tax: -£15/month
• Net cost: £389

Save £161/month (29%) = £1,932/year

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Example 3: £75,000 Salary

Tesla Model Y (£54,990 P11D)

Personal Lease: £680/month

Via Salary Sacrifice:

• Pre-tax cost: £680
• Tax saved: £272 (40%)
• NI saved: £13.60 (2%)
• BiK tax: -£18.33/month
• Net cost: £412.73

Save £267/month (39%) = £3,207/year

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Example 4: £100,000 Salary

BMW i4 (£62,000 P11D)

Personal Lease: £750/month

Via Salary Sacrifice:

• Pre-tax cost: £750
• Tax saved: £300 (40%)
• NI saved: £15 (2%)
• BiK tax: -£20.67/month
• Net cost: £455.67

Save £294/month (39%) = £3,532/year

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Example 5: £150,000 Salary

Mercedes EQE (£78,000 P11D)

Personal Lease: £900/month

Via Salary Sacrifice:

• Pre-tax cost: £900
• Tax saved: £405 (45%)
• NI saved: £18 (2%)
• BiK tax: -£29.25/month
• Net cost: £506.25

Save £394/month (44%) = £4,725/year

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Savings Summary

Key Insights:

• 💰 Basic rate: ~29% savings
• 💰💰 Higher rate: ~39-44% savings
• 💰💰💰 Additional rate: up to 44% savings

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Why Higher Earners Save More

Higher rate taxpayers save more because:

1. 40% vs 20% tax - Double the savings
2. Same low 2% BiK - Still only 2% for EVs
3. Bigger absolute amounts

But basic rate taxpayers still save significantly - £100-200/month typically.

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Hidden Costs to Consider

1. Reduced Gross Salary

Affects:

• 🏠 Mortgage applications
• 💳 Loan applications
• 💰 Pension contributions
• 🏥 Life insurance

2. Electricity Costs

You pay for charging:

• Home: ~£8-12 per 100 miles
• Public: ~£15-25 per 100 miles
• Still cheaper than petrol!

3. Extra Mileage

Beyond included miles (4,000-8,000):

• 5-10p per mile extra
• Can add £50-100/month

4. Early Termination

If you leave job:

• 3-6 months' payments typically
• Some providers: "Zero Risk Guarantee"

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Is It Worth It?

For most people: YES!

Even with hidden costs, you save £100-400/month vs personal leasing.

Worth It If:

• ✅ Need a car anyway
• ✅ 3-4 year commitment OK
• ✅ Employer offers scheme
• ✅ Earn above minimum wage

Reconsider If:

• ❌ Changing jobs soon
• ❌ Applying for mortgage soon
• ❌ Drive < 3,000 miles/year
• ❌ Need specific unavailable car

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Real Customer Examples

Sarah, £55k:

• VW ID.4
• Saves £185/month (32%)

"Costs less than my old Qashqai lease, everything included!"

James, £85k:

• Tesla Model 3
• Saves £298/month (41%)

"As higher rate, savings are incredible. Tesla for Nissan Leaf price!"

Emma, £40k:

• MG4 EV
• Saves £118/month (28%)

"On modest salary, still save £1,400/year plus free insurance!"

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Calculate Your Exact Savings

Use our calculator for your situation:

Calculate Now →

Enter:

• Your salary
• Tax code
• Desired car
• Mileage

Get instant:

• Monthly cost via salary sacrifice
• Savings vs personal lease
• Annual tax savings
• Total cost over term

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Compare Providers

Full comparison →

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Next Steps

1. Calculate Savings - Your exact numbers
2. Compare Providers - Find best scheme
3. Get Quotes - Personalized quotes

Start saving today!

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Last Updated: November 2025