Find your dream car based on your salary with The Electric Car Scheme
Sustainable choices should be obvious and affordable. When the choice is better for your wallet and the environment - it’s a no-brainer. Salary sacrifice saves 30-60% on the cost of any electric car by paying from your salary before tax.
As an HR director exploring salary sacrifice, you may want to assess potential employee savings through this scheme. Similarly, if you're an employee, you might be interested in discovering the affordability of various cars based on your current salary. We've selected two cars for each tax bracket as examples, highlighting the range of options available across different salary levels when considering vehicle choices. It’s important to remember there is a car for everyone!
How your tax salary sacrifice savings are calculated depending on your salary
Benefit-in-kind tax is a tax on employees who receive benefits or perks on top of their salary. This is otherwise known as company car tax and is calculated based on three factors:
The level of CO2 emissions produced by a car - an electric car has none,
The P11D value of a car - this is the on-road price of a car,
Your tax bracket.
The amount of Income Tax you pay each tax year is determined by two main factors:
The portion of your tax that exceeds your Personal Allowance
What tax band you fall into.
We have included a table that shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,570.
| Band | Taxable income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
You can learn more about the Electric Car Benefit-in-Kind tax in our comprehensive guide that also covers how the BIK rate will change in 2025 and compares petrol to electric cars.
What can I get on a £40k salary?
Someone classified as a basic rate taxpayer earns between £12,000 and £50,000 per annum, meaning the tax range is 20%. We've used our quote tool to show what's available for someone earning £40,000 annually and the portion of their gross pay they would need to sacrifice. Your savings depend on the salary you earn. We've chosen the following two vehicles due to their varying sizes and different purposes.
Volkswagen ID.Buzz Estate
The Volkswagen ID. Buzz Estate is a family vehicle that is a mix of van and ‘multi-purpose vehicle.’ Visually it looks like a modern remake of the original Volkswagen T1 from the 40s/50s.
The 77kWh battery pack can offer up to 258 miles of range on a single charge. It can go from 0 to 60 mph in 7.4s.
The interior is very large with a lot of boot space. As Autocar puts it, “it is a strict five-seater with an open floor.” The interior is said to be relatively simple in terms of infotainment and navigation systems.
| How are your savings calculated? | Breakdown per month |
|---|---|
| BEST LEASE PRICE AVAILABLE | £975 |
| EMPLOYEE TAX SAVINGS | -£312 |
| AVERAGE BENEFIT IN KIND TAX | £27 |
| YOU PAY | £690 |
Mini Cooper Electric Hatchback
It looks the same as any other 3-door Mini Hatchback but has a 32.6kWh battery and can reach 143 miles on a single charge. Mini claims that “a typical owner will cover far fewer miles each day, and a lighter battery equates to lower weight, lower costs and quicker charging times.” The Electric Mini Hatchback can go from 0-60 mph in 7.3 seconds.
Charging the Mini Electric to full at home will take a little over 3 hours, but if you’re using a rapid charger (50kW) it’ll take 36 minutes.
This vehicle offers a comfortable driving experience in urban areas as well as on highways, positioning it as an ideal everyday electric vehicle (EV). However, due to limited space in the rear, it might not qualify as a spacious or accommodating family car.
| How are your savings calculated? | Breakdown per month |
|---|---|
| BEST LEASE PRICE AVAILABLE | £626 |
| EMPLOYEE TAX SAVINGS | -£200 |
| AVERAGE BENEFIT IN KIND TAX | £15 |
| YOU PAY | £441 |
What can I get on a £70k salary?
If you’re earning between £50,271 and £125,140, you’re a higher-rate taxpayer (with a tax rate of 40%). Again, we have used the quote tool to select two different cars to calculate your savings if you earn £70,000 per annum, and want a 3-year lease with 10,000 miles.
Volvo c40 Estate
Equipped with a 66kWh battery, this model boasts an official range of 287 miles on a full charge and can achieve 0-60mph acceleration in 7.3 seconds.
Internally, Volvo has replaced leather with vegan upholstery and introduced 3D-printed dashboard panels. The driving experience has been streamlined, eliminating the need for a starter button or handbrake—simply shift to Drive and embark on your journey.
Purposefully crafted as an electric family SUV, this vehicle prioritises both passenger and driver comfort, ensuring a relaxing and enjoyable ride for all occupants.
| How are your savings calculated? | Breakdown per month |
|---|---|
| BEST LEASE PRICE AVAILABLE | £765 |
| EMPLOYEE TAX SAVINGS | -£321 |
| AVERAGE BENEFIT IN KIND TAX | £45 |
| YOU PAY | £488 |
Hyundai Ioniq 6 Electric
Auto Express hailed this as a "remarkable electric car with a distinct design and outstanding technology."
Each Ioniq 6 variant runs on a 77.4kWh battery, delivering an impressive range of up to 339 miles. It manoeuvres adeptly on highways and in urban settings, positioning it as a versatile vehicle for daily commutes.
Internally, the Ioniq 6 boasts two sizeable displays, a user-friendly layout, and ample storage. To accommodate the sloping ceiling and ensure ample headroom, the seats have been lowered, resulting in a comfortable cabin with reduced legroom.
| How are your savings calculated? | Breakdown per month |
|---|---|
| BEST LEASE PRICE AVAILABLE | £618 |
| EMPLOYEE TAX SAVINGS | -£259 |
| AVERAGE BENEFIT IN KIND TAX | £43 |
| YOU PAY | £402 |
What you can get if you’re earning £120k
An additional rate taxpayer refers to those who earn over £125,140, whose tax rate is 45%. Here’s what you can get for that amount.
Porsche Taycan Saloon
Porsche has referred to the Taycan as “the pure expression of a Porsche electric sports car” which is extremely exciting for the wider EV industry. It can reach a top speed of 143 mph and accelerate from 0-60 mph in just 5.4 seconds. The Taycan is also practical with rear doors, room for people in the back and a decently sized boot.
Inside, “the Porsche Taycan beats all rival electric cars for interior quality”. It features four giant screens in the front: one behind the steering wheel, two touchscreens in the middle of the dashboard and then you can pay extra for the fourth which would sit in front of the passenger.
| How are your savings calculated? | Breakdown per month |
|---|---|
| BEST LEASE PRICE AVAILABLE | £1,598 |
| EMPLOYEE TAX SAVINGS | -£927 |
| AVERAGE BENEFIT IN KIND TAX | £110 |
| YOU PAY | £717 |
BMW iX3-e Electric Estate
The BMW iX3-e comes equipped with an 80kWh battery, providing an impressive range of up to 285 miles. Charging from empty using a home charger typically takes around 12 hours.
Notably, this car offers a serene driving experience, ideal for navigating towns and highways effortlessly. Its exceptional practicality shines through its ample boot space and rear-seat roominess, catering perfectly to families.
In terms of both driving experience and interior design, the iX3-e closely resembles its petrol and diesel counterparts. An ingenious feature of its navigation system automatically adjusts the car's speed when approaching areas with reduced speed limits, ensuring a seamless transition to the new speed zone.
| How are your savings calculated? | Breakdown per month |
|---|---|
| BEST LEASE PRICE AVAILABLE | £952 |
| EMPLOYEE TAX SAVINGS | -£590 |
| AVERAGE BENEFIT IN KIND TAX | £89 |
| YOU PAY | £450 |
It is important to note, the cars mentioned in this article are not confined to these salaries. We selected two cars for each tax bracket to show the savings available depending on how much you earn. There is a car available for everyone! Explore the wide range of cars we have available and customise with your information by visiting our quote tool
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
