Electric car salary sacrifice calculator
What a fully electric car through salary sacrifice costs you a month in the current tax year.
Your estimate
This estimate combines the reduction in take-home pay from salary sacrifice with the income tax on the car benefit. It is for a fully electric car available for the whole tax year.
Enter your details above to see your estimate.
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How your annual take-home pay is worked out
Two halves: the salary sacrifice, which saves tax and NI, and the benefit in kind, which adds tax. Every step is shown annually; monthly figures above are one twelfth. Income tax uses annual bands; National Insurance is an annualised estimate, since NI is actually assessed per pay period.
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How an electric car through salary sacrifice works
You give up part of your salary and your employer leases the car for you. The lower salary can reduce income tax and National Insurance. This calculator combines those savings with the tax on the car benefit to estimate the overall cost. The saving depends on your income. Between and of income, the sacrifice can also restore some personal allowance.
Private use of a company car is a taxable benefit, called a benefit in kind (BIK). Its cash equivalent is the P11D value times an appropriate percentage set for each tax year by the car's CO2 emissions. For a fully electric car in that is , the zero-emissions percentage. The car’s P11D value multiplied by this percentage gives the taxable benefit added to your income. No employee National Insurance is charged on it. The percentage is set each year and can rise, so check the rate for later years before signing a multi-year lease.
This calculator is for fully electric cars only. Hybrids and petrol or diesel cars use higher percentages, which depend on their emissions and electric range. It uses the scheme cost you enter. It does not add costs outside that quote, such as insurance, maintenance, tyres or charging. Your employer may include its Class 1A National Insurance cost in the quote. The same limits apply as to any salary sacrifice, including the pension salary sacrifice: your pay cannot fall below the minimum wage, and lower pay can affect anything worked out from your salary, such as mortgage borrowing or statutory pay.