9 Electric Car Salary Sacrifice Examples: With EV Calculator (May 2026)
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When people search for information on electric car salary sacrifice, most articles explain how the scheme works in theory. What they don't show is what it actually looks like on your payslip - the real monthly figure you'd pay for a specific car, based on your specific salary.
This guide fixes that. Below you'll find real salary sacrifice electric car examples across three tax brackets, covering a range of popular EVs available through The Electric Car Scheme. You'll also find a link to our free EV savings calculator so you can run the numbers for your own situation.
We cover:
How salary sacrifice affects your monthly cost depending on your tax bracket
Real examples across the 20%, 40%, and 45% income tax brackets
How the current 4% BiK rate for 2026/27 compares to petrol car tax
Why salary sacrifice saves higher earners more
How an electric car compares to a petrol car on total running costs
What the order process looks like from start to delivery
How salary sacrifice compares to a company car
What to ask your HR team if your employer doesn’t offer The Electric Car Scheme
Common objections, answered honestly
Use the section links to jump straight to your tax bracket, or read through from the top to understand how the whole calculation works.
How Does Electric Car Salary Sacrifice Work?
Before we get to the examples, a quick explanation of the mechanics - because understanding why the numbers come out the way they do makes the figures much easier to interpret.
With an electric car salary sacrifice scheme, your employer leases an electric vehicle on your behalf. The monthly lease cost is then deducted from your gross salary - before income tax and National Insurance are calculated. That means you're not paying for the car out of take-home pay. You're reducing the portion of your income that gets taxed.
In practice, this means the real cost to you is the lease amount minus the tax and NI you would have paid on that portion of your salary. That's where the 20–50% saving comes from.
The only taxable element is Benefit-in-Kind (BiK) tax, which is applied to the car as a company benefit. For fully electric vehicles in 2026/27, the BiK rate is 4% - compared to up to 37% for high-emission petrol or diesel cars. Our Benefit-in-Kind guide explains exactly how that's calculated.
You can also find out how salary sacrifice works in more detail on our resource hub.
What Is the BiK Rate for Electric Cars in 2026?
The current BiK rate for zero-emission electric vehicles is 4% for 2026/27. It is set to increase by 1% per year to 5% in 2027/28, then by 2% per year after that, capping at 9% in 2029/30. [Last verified: May 2026]
Even at 9%, that is well below the maximum 37% applied to high-emission petrol vehicles. For context, most mid-range petrol company cars attract a BiK rate of 25–35%.
The table below shows how BiK rates compare:
| Vehicle type | BiK rate 2026/27 |
|---|---|
| Fully electric (0g/km CO2) | 4% |
| Mild hybrid (21–50g/km, 70–129mi range) | 7% |
| Petrol (average family car) | 25–30% |
| High-emission petrol/diesel | Up to 37% |
This low rate is what makes salary sacrifice so effective for electric cars specifically. Our 2025 Spring Statement EV tax changes article has more on the trajectory of these rates.
Electric Car Salary Sacrifice Examples: 20% Tax Bracket (£12,571–£50,270)
If your gross salary falls between £12,571 and £50,270, you pay 20% income tax and 8% National Insurance on most earnings. That means for every £1 you sacrifice, you save around 28p in tax and NI combined.
The examples below are drawn from the most-leased electric cars on The Electric Car Scheme in 2026 so far, in the price range typical for basic-rate tax payers. Lease terms and mileage are based on a 36 month lease covering 8,000 miles per year. Use our EV salary sacrifice calculator for a personalised figure on any car.
Example 1: Omoda 5 Electric (Sarah, £35,000 salary)
Meet Sarah. A 28-year old Marketing Coordinator in Manchester earning £35,000. Sarah leases a Omoda 5 through her employer’s EV salary sacrifice scheme.
The Omoda 5 Electric is the most-leased EV through The Electric Car Scheme in 2026 so far, with hundreds of these cars delivered to UK customers already. It combines compact-SUV practicality with one of the most accessible monthly costs of any new EV on the market.
| Gross monthly salary sacrifice | £385 |
|---|---|
| Income tax saving (20%) | -£77 |
| National Insurance saving (8%) | -£31 |
| BiK tax (4% of P11D, /12) | +£31 |
| Net monthly cost | £308 |
A new electric SUV for a net cost just shy of £300 per month, fully maintained, fully insured (where included), with road tax and breakdown cover bundled in. For a basic-rate taxpayer, this is one of the most affordable ways to get into a brand-new EV in 2026. Over a three-year lease, that's around £2,760 back in your pocket on a car that's cheaper to run than petrol and qualifies for lower road tax.
“I didn’t think I could afford a new electric car on my salary. Then my company introduced The Electric Car Scheme, and my net monthly car cost is less than what I was paying in petrol. The Omoda 5 is fab and it’s much bigger than my old car.’ Sarah, Electric Car Scheme customer since February 2026.
Example 2: Volkswagen ID.3 (Denise, £42,000 salary)
Meet Denise. A 35-year old Project Manager in Birmingham earning £42,000. Denise leases a Volkswagen ID.3 through her employer’s EV salary sacrifice scheme.
The Volkswagen ID.3 has been a consistent top-seller through The Electric Car Scheme, with multiple deliveries in the first few months of the year. It's a practical, well-equipped family hatchback with a real-world range of around 200 miles. The Volkswagen ID.3 remains one of the best everyday electric cars to salary sacrifice.
| Gross monthly salary sacrifice | £425 |
|---|---|
| Income tax saving (20%) | -£85 |
| National Insurance saving (8%) | -£34 |
| BiK tax (4% of P11D, /12) | +£30 |
| Net monthly cost | £336 |
A saving of £89 per month, just under 21% on the lease price. For a basic-rate taxpayer, salary sacrifice consistently delivers savings in the 20 to 25% range.
“The whole process of ordering and getting the car delivered was seamless by The Electric Car Scheme. Zahir and Ben were really help throughout the process and answered any questions or concerns we had. Now I’m commuting to work and driving around town in an electric car I didn’t think I could get my hands on!” Denise, Electric Car Scheme customer since May 2026.
Example 3: BYD Seal (Priya, £48,000 salary)
Meet Priya. A 41-year old Senior Analyst in Leeds earning £48,000. Priya needed space for two children and the odd, long weekend trip to visit her family in London. Priya picked the BYD Seal through The Electric Car Scheme.
The BYD Seal is one of the standout new entrants in the UK EV market, with popular demand through The Electric Car Scheme in 2026 so far. It's a mid-size electric saloon with a real-world range of around 280 miles, premium interior fit, and pricing that puts it within reach at the top of the basic-rate bracket.
| Gross monthly salary sacrifice | £534 |
|---|---|
| Income tax saving (20%) | -£107 |
| National Insurance saving (8%) | -£43 |
| BiK tax (4% of P11D, /12) | +£46 |
| Net monthly cost | £430 |
A saving of more than £3,726 over the entire length of the lease. When you factor in lower home charging costs against petrol and reduced servicing expenses, the total saving over three years is considerably larger.
“I had an excellent experience and am now driving a car I wasn’t even considering, the BYD Seal. It’s been great for the family, and the kids enjoy all of the quirky features that come with the car - including the flipping screen! If I have any questions about the car, I can pick up the phone and speak to the ECS team.” Priya, Electric Car Scheme customer since April 2026.
Electric Car Salary Sacrifice Examples: 40% Tax Bracket (£50,271–£125,140)
At the higher-rate tax band, salary sacrifice becomes noticeably more powerful. You're now saving 40% on income tax rather than 20%, and the same BiK rate applies — so the gap between gross cost and net cost widens substantially. Higher earners typically save 35–45% through the scheme.
Example 4: Volkswagen ID.4 (Aisha, £65,000 salary)
Meet Aisha. A 38-year old Software Engineer in London earning £65,000. Aisha was previously driving a diesel BMW X5 on a personal lease and was spending a lot on diesel as well.
The Volkswagen ID.4 remains one of the most-leased electric cars through The Electric Car Scheme. The all-electric SUV step up from the ID.3, more space, more range, and a premium feel that suits someone with a little more headroom in their budget.
| Gross monthly salary sacrifice | £540 |
|---|---|
| Income tax saving (40%) | -£216 |
| National Insurance saving (2%) | -£11 |
| BiK tax (4% of P11D, /12) | £38 |
| Net monthly cost | £351 |
A saving of £189 per month. 35% off the gross lease price. Note that above the 40% threshold, National Insurance drops to 2%, which slightly reduces the NI element of savings compared to lower earners, but the much larger income tax saving more than compensates.
“I loved my BMW X5 it was big, spacious and it had a lot of road presence. But the ongoing high lease payments and creeping cost of diesel meant we had to part ways. I chose the Volkswagen ID.4 with The Electric Car Scheme as they had a special deal on it. I was going to get one from our local dealership, but it just made so much more financial sense to salary sacrifice it.” Aisha, Electric Car Scheme customer since January 2026.
Example 5: Tesla Model 3 (David, £80,000 salary)
Meet David. A 44-year old Finance Director in London earning £80,000. David has two young children, so needed room for a couple of car seats and enough range for a 25-mile round commute from London to Reading.
The Tesla Model 3 is one of the most-leased EVs through salary sacrifice schemes in the UK. Long range, fast charging, and packed full of technology that is best in class.
| Gross monthly salary sacrifice | £630 |
|---|---|
| Income tax saving (40%) | -£252 |
| National Insurance saving (2%) | -£13 |
| BiK tax (4% of P11D, /12) | £43 |
| Net monthly cost | £408 |
A £222 monthly saving which is 35% below the gross monthly lease cost. Over a 36-month lease, that's a total saving of around £8,000 versus leasing outside The Electric Car Scheme. Our Tesla salary sacrifice guide has more on the available models.
Charging note: the Tesla Model 3 RWD has a real-world range of around 280 miles. UK Supercharger coverage exceeds 1,500 locations, making the Tesla driving experience the most hassle free one amongst all EVs.
“I’d been eyeing up a Tesla Model 3 or Model Y for a long time. I had been to my local Tesla garage and even test drove the car, it’s safe to say once we got into it the Model 3, we were convinced! Plenty of fun to be had behind the wheel, and my kids can watch Netflix or Youtube in the back. I was driving a banged up Mercedes C-Class for ages, but it was costing my loads in maintenance and repairs. Happy with my decision to get the Model 3.” David, Electric Car Scheme customer since April 2026.
Example 6: Polestar 3 (Marcus, £105,000 salary)
For employees approaching the £100,000 personal allowance taper (where earnings above £100,000 effectively attract a 60% marginal tax rate due to allowance withdrawal), salary sacrifice can be even more powerful, it reduces taxable income, which can help restore some or all of the lost personal allowance.
Meet Marcus. A 47-year old Commercial Director in Edinburgh earning £105,000. Marcus has always enjoyed driving the latest cars, but was yet to try an electric one. He changed that when his company introduced The Electric Car Scheme.
The Polestar 3 is a compelling premium SUV choice at this level. It blends Scandinavian minimalism with advanced technology, serving as a sportier alternative to the Volvo EX90. It offers a 106-111 kWh battery, 350-mile+ range, and dual-motor AWD that can hit 60 mph in under 4 seconds in performance models
| Gross monthly salary sacrifice | £920 |
|---|---|
| Income tax saving (40% / effective higher rate) | -£368 |
| National Insurance saving (2%) | -£18 |
| BiK tax (4% of P11D, /12) | £60 |
| Net monthly cost | £594 |
A saving of £326 per month, which over the course of a three year lease can amount to nearly £12,000 in savings.
“I was on the fence about electric cars, but then work introduced our car scheme. I was toying with the idea of an expensive SUV and landed on the Polestar 3. Having driven lots of Volvos in the past, the Polestar brand has always had a solid reputation. You don’t see many Polestar 3s on the road, so I love that it has that wow factor. ” Marcus, Electric Car Scheme customer since February 2026.
For those caught in the personal allowance taper, like Marcus, the effective saving can be even greater. To learn more read our salary sacrifice and tax changes guide for more detail. We are not tax or financial experts, so please do seek financial advise independently of our website.
Electric Car Salary Sacrifice Examples: 45% Tax Bracket (£125,141+)
At the additional rate, salary sacrifice reaches its most significant impact. You're saving 45p in income tax on every £1 sacrificed, with BiK still fixed at just 4%. The result is that premium electric cars become genuinely affordable - and in some cases, dramatically cheaper than a comparable petrol alternative.
A pattern worth flagging from our 2026 customer data: top-bracket earners are not predominantly leasing the most expensive EVs available. The proportional saving on a £400-a-month car is larger than on a £1,500-a-month car, and the BiK rate is identical. That changes the calculation. The Electric Car Scheme additional-rate customers in 2026 are spread across the full price range, with many choosing the same models popular at lower salary bands.
Example 7: BMW i4 (Helena, £140,000 salary)
Meet Helena. A 51-year-old Managing Partner in London earning £140,000. Helena isn't particularly interested in cars, but the savings through her firm's salary sacrifice scheme made the BMW i4 an obvious choice.
The BMW i4 is the highest-volume premium electric car on The Electric Car Scheme in 2026, with multiple deliveries year-to-date. The i4 is a premium saloon that combines sporty driving dynamics with genuine long-range EV capability. It's a natural salary sacrifice choice for higher earners who want performance without compromise.
| Gross monthly salary sacrifice | £760 |
|---|---|
| Income tax saving (45%) | -£342 |
| National Insurance saving (2%) | -£15 |
| BiK tax (4% of P11D, /12) | £52 |
| Net monthly cost | £455 |
A £305 monthly saving, 40% off the gross lease cost. Over three years, that's over £10,980 in savings on a car that also costs a fraction of a petrol equivalent to run and insure.
“I recently took delivery of my new BM4 i4 via ECS. There website has a great selection of cars and even greater customer service at point of enquiry. Not being that into cars, I had lots of questions to begin with but the team were happy to help and kept me updated regularly between ordering and delivery. They even installed a home charger for me.” Helena, Electric Car Scheme customer since April 2026.
Example 8: Mercedes EQS (Daniel, £175,000 salary)
Meet Daniel. A 45-year-old Chief Executive in Coventry earning £175,000. With a 200-mile round commute to London twice a week, comfort and range are non-negotiable. He's already calculated that home charging will save him over £400 a month against petrol.
For those at the top of the earnings range, the Mercedes EQS is a flagship luxury electric saloon, acting as an EV counterpart to the S-Class, featuring a new 118kWh battery for up to 574 miles of range (WLTP) and a distinctive, aerodynamic "one-bow" design. The EQS is renowned for its immense 610-litre hatchback boot, optional 56-inch MBUX Hyperscreen, and exceptionally quiet, comfortable ride. All at a net cost that would be unthinkable outside of salary sacrifice.
| Gross monthly salary sacrifice | £1,350 |
|---|---|
| Income tax saving (45%) | -£608 |
| National Insurance saving (2%) | -£27 |
| BiK tax (4% of P11D, /12) | £89 |
| Net monthly cost | £804 |
Daniel saves £546 per month on the Mercedes EQS through salary sacrifice. Across his three-year lease, that totals more than £19,600, a 40% reduction on the gross lease cost.
“My first experience with The Electric Car Scheme has been fantastic. From searching deals, selecting and ordering your car and being kept up to date with your own dedicated support agent. It has been great from start to finish. My EQS arrived this morning and I am very pleased. A special thank you to Aaron Figgett, who kept me up to date along the way.” Daniel, Electric Car Scheme customer since April 2026.
Our Mercedes salary sacrifice guide covers the full EQS range and other available models.
Example 9: Porsche Taycan (Sophia, £200,000 salary)
Meet Sophia. A 49-year-old Founder in Bristol earning £200,000. With a passion for sports cars and fast cars, she has always been a bit of a petrol head. That was until she spotted the price of a Porsche Taycan with The Electric Car Scheme.
A note on this example: the Taycan is not a top-selling car on The Electric Car Scheme. Across the first four months of 2026, Electric Car Scheme additional-rate customers overwhelmingly chose mid-premium EVs like the BMW i4, the Polestar 2 and the Volvo XC40 Electric, not six-figure sports saloons. Sophia is the exception, not the rule. We've included the Taycan here because it shows the upper edge of what salary sacrifice can deliver: even at the most aspirational end of the market, the tax efficiency on zero-emission vehicles is significant.
| Gross monthly salary sacrifice | £1,580 |
|---|---|
| Income tax saving (45%) | -£711 |
| National Insurance saving (2%) | -£32 |
| BiK tax (4% of P11D, /12) | £100 |
| Net monthly cost | £937 |
A saving of £643 per month, 41% against the gross cost. That's over £23,000 saved across a three-year lease, with Porsche's three-year manufacturer warranty and eight-year battery warranty covering Sophia for the full term.
“I've driven petrol sports cars my whole adult life. Switching to electric wasn't on my radar, and a Porsche Taycan on a private lease was hard to justify against the alternative of keeping what I had. A colleague mentioned they had ordered a car with The Electric Car Scheme in passing and I ran the calculator more out of curiosity than anything else. The headline figure was a saving of over £600 a month.
Once I'd factored in fuel and servicing on what I'd been driving, the gap was wider still. The Taycan arrived three months later and it drives exactly the way you'd hope. The conversation I find myself having now is with other founders who assume the maths can't possibly work.” Sophia, Electric Car Scheme customer since March 2026.
For more on the fastest electric cars to salary sacrifice, see our dedicated guide.
Speak to an Electric Car Scheme specialist about your options
A 15-minute call covers how the scheme works, what's included in your monthly cost, and a personalised quote for the car you're considering. For tax planning specific to your situation, your accountant or financial adviser is the right starting point. Click here to book a call.
Why Chinese EV Brands Are Climbing The Electric Car Scheme’s Top 10
Roughly one in three cars delivered through The Electric Car Scheme in 2026 has been from a Chinese-market manufacturer. BYD, Omoda, Changan, Jaecoo and MG combined account for around a third of all deliveries year-to-date, with the Omoda 5 Electric and the BYD Sealion 7 occupying the top two volume positions.
There are three reasons this matters for an employee evaluating salary sacrifice.
Pricing: these brands typically deliver more car for the monthly figure, which compounds the salary sacrifice tax saving on top of an already-competitive lease price.
Specification: the newer Chinese-market EVs typically come with strong standard equipment lists, larger batteries and longer range than equivalently-priced European competitors.
Choice: the broker model behind The Electric Car Scheme gives access to the full UK market, which is why these volumes are showing up in the data.
For a deeper look at why these Chinese brands are gaining ground in the UK market, read our blog on the most popular Chinese EVs.
How Savings Compare Across Tax Brackets
One of the clearest ways to see the value of salary sacrifice is to look at the same car across different tax bands. Here's the Hyundai IONIQ 5 (gross monthly sacrifice: £590) for three different earners:
| Tax bracket | Gross cost | Net cost | Monthly saving | % saving |
|---|---|---|---|---|
| 20% (basic rate) | £590 | £465 | £125 | 21% |
| 40% (higher rate) | £590 | £373 | £217 | 37% |
| 45% (additional rate) | £590 | £360 | £230 | 39% |
The car is identical. The only thing that changes is how much tax relief you receive. Higher earners save proportionally more - but every employee benefits meaningfully.
Electric Car Salary Sacrifice vs Personal Lease: A Direct Comparison
Many drivers compare salary sacrifice against a personal lease or PCP deal. The key difference is that with a personal lease, you pay from net (after-tax) income. With salary sacrifice, you pay from gross income - so the government effectively subsidises part of your car.
Here's a quick comparison using the Tesla Model 3 at £630/month gross:
| Personal lease | Salary sacrifice (40% taxpayer) | |
|---|---|---|
| Gross monthly cost | £630 | £630 |
| Tax/NI relief | None | -£265 |
| BiK tax payable | None | £43 |
| Actual monthly cost | £630 | £408 |
That's a £222 monthly difference on the same car. Over three years, the salary sacrifice route saves over £8,000 - enough to cover all home charging costs for the term with money to spare. Use our EV savings calculator to run a direct comparison for your own salary and chosen vehicle.
You can also read more in our guide to the difference between leasing and buying an EV outright.
Electric Car vs Petrol Car: What Does It Actually Cost to Run?
Salary sacrifice changes what you pay to access the car. But once you're driving it, the day-to-day running costs are where electric vehicles pull further ahead. Petrol cars cost significantly more to fuel and maintain - and those costs come out of your net pay, with no tax relief.
Here's a like-for-like monthly running cost comparison for a typical driver covering 10,000 miles per year:
| Cost | Electric car (via salary sacrifice) | Equivalent petrol car |
|---|---|---|
| Monthly lease / net cost | From £267 (20% taxpayer) | From £380 (personal lease) |
| Monthly fuel / charging | ~£52 (home charging at 7p/kWh) | ~£102 (petrol at current prices) |
| Monthly servicing & maintenance | Included in lease | ~£17 (estimated average) |
| Road tax (VED) | Included in lease | £195/year (~£16/month) |
| BiK tax | ~£22–£100/month (EV rate) | Up to £300+/month (petrol rate) |
Electric motors have far fewer moving parts than petrol engines - no oil changes, no exhaust system, no cam belt. Servicing an electric car typically costs around 30–40% less than an equivalent petrol model over a three-year period. When you factor that into the all-inclusive salary sacrifice lease (where maintenance is bundled in), the effective saving widens further.
On fuel alone, the difference is considerable. Charging a typical 60kWh EV at home on an EV-specific tariff costs roughly £4–£5 for a full charge (covering 200+ miles). Filling a petrol car to cover the same distance costs around £18–£22 at current prices. That's a gap of £600–£1,500 per year depending on your mileage - money that stays in your pocket every month. See our electric cars vs petrol cars cost comparison for the full breakdown.
The total picture — lower net monthly lease cost, lower fuel bill, lower maintenance, lower BiK tax - means an electric car through salary sacrifice is the cheapest way to run a car for the majority of UK employees.
What's Included in a Salary Sacrifice Lease?
Unlike a standard personal lease - where you may need to arrange servicing, breakdown cover, and insurance separately - an electric car salary sacrifice lease through The Electric Car Scheme includes everything in one simple monthly payment:
The electric vehicle itself
Full maintenance and servicing
Breakdown cover
Road tax
Complete Employer Protection (from day one, for all customers)
Optional: home charger installation through our salary sacrifice charging scheme
That all-inclusive model is one reason salary sacrifice compares so favourably to PCP or standard leasing, where many of those costs come on top. For a full breakdown of what's covered, visit our salary sacrifice cars explained page.
The Charge Scheme: Salary Sacrifice Your EV Charging Too
The savings don't have to stop at the car. Through The Charge Scheme, employees can also salary sacrifice the cost of EV charging — whether that's at home, at work, or on public networks.
By using the same pre-tax deduction mechanism, drivers can save 20–50% on their charging costs, using a single app and card to manage payments across all charging locations. For drivers covering significant mileage, this can mean an additional £500–£1,000 in savings per year.
This makes The Electric Car Scheme the only salary sacrifice provider offering a genuinely end-to-end solution: the car, the charger installation, and the ongoing charging costs — all through one scheme.
How to Get an Electric Car Through The Electric Car Scheme: Step by Step
If you've decided salary sacrifice is right for you, here's exactly what the process looks like - from your first conversation to the car arriving on your driveway.
Step 1: Check your employer is signed up
Visit electriccarscheme.com and check whether your employer already offers the scheme. If they do, you'll get direct access to the quote tool. If they don't, you can refer them — setup costs employers nothing, and most are operational within three to four weeks.
Step 2: Use the savings calculator
Before committing to any car, use our free EV savings calculator to see your personalised monthly net cost based on your salary, tax bracket, chosen vehicle, and annual mileage. This takes around two minutes and gives you a clear picture of what you'd actually pay each month.
Step 3: Choose your car
Browse the full range of available electric vehicles through the quote tool - new, used, or subscription. You can filter by budget, brand, range, or body style. Every car is priced all-inclusive: the vehicle, maintenance, servicing, MOT, tyres, breakdown cover, and road tax are all bundled into the single monthly sacrifice amount. No hidden extras.
Used EVs are available for delivery within 14 days. New EVs typically arrive within 8–16 weeks depending on the model and manufacturer. If you need a car sooner, subscription options can be delivered in around 7 days.
Step 4: Apply and get approved
Once you've selected a car, your application goes through a credit check via one of The Electric Car Scheme's FCA-regulated leasing partners. Your employer then approves the salary sacrifice agreement. All documents are signed digitally - no paperwork, no trips to a dealership.
Step 5: Your car is delivered
Used cars arrive within 14 days of your order. New vehicles follow the manufacturer's lead time, communicated upfront. Your employer begins deducting the salary sacrifice amount from your gross pay once the car is delivered - you don't pay anything before the car arrives.
From that point, everything is taken care of. Maintenance, servicing, MOTs, and breakdown cover are all included. If you want to add home charger installation or salary sacrifice your charging costs through The Charge Scheme, both can be bundled into the same arrangement.
For a full walkthrough of the employer setup process, visit our salary sacrifice resource hub.
Common Objections, Answered Honestly
Most salary sacrifice leases run for two to four years and are designed to be held to term. If you do need to change vehicle mid-lease, options are limited and may attract early termination charges. Choose your term with care, and use the calculator to test scenarios at different lease lengths.
What if I leave my job during the lease?
This is where Complete Employer Protection matters. Through The Electric Car Scheme, employers are protected from day one against early termination costs caused by redundancy, dismissal, or long-term sickness. For employees, the standard process is to either return the car or, in some cases, transfer the lease to a personal arrangement.
What if my employer changes provider?
Existing leases are not affected. The original lease contract remains in place between the employer and the funder for the duration of the term. Any new vehicles ordered after the change would go through the new provider.
Will salary sacrifice affect my mortgage application?
It can. Salary sacrifice reduces your gross salary, which some lenders use as the basis for mortgage affordability assessments. If you are planning a mortgage application within the next 12 months, speak to your broker before signing a salary sacrifice agreement.
What about the residual value of EVs?
Residual value risk sits with the leasing company, not the employee. You're leasing the car, not buying it: at the end of the lease, you simply hand it back. EV residual values have stabilised meaningfully over the last two years as the secondhand market matures.
Frequently Asked Questions
How much can you save with an electric car salary sacrifice scheme?
Employees typically save 20–50% compared to a standard personal lease. The exact saving depends on your income tax bracket — 20% taxpayers save less than 45% taxpayers, but every employee benefits from paying for the car before tax.
What is the BiK rate for electric cars in 2026?
The BiK (Benefit-in-Kind) rate for fully electric vehicles is 4% for the 2026/27 tax year. It rises by 1% to 5% in 2027/28, then increases by 2% per year from 2028/29, reaching a maximum of 9% in 2029/30. This remains far below the 25–37% rates applied to most petrol and diesel cars.
Which electric cars are most popular through The Electric Car Scheme?
Based on actual Electric Car Scheme deliveries in 2026, the five most-leased EVs are the Omoda 5 Electric, the BYD Sealion 7, the BYD Seal, the Tesla Model 3, and the BMW i4.
The full top nine also includes the Tesla Model Y, the Volkswagen ID.3, the Polestar 2, and the Volvo XC40 Electric.
Can I include a home charger in my salary sacrifice scheme?
Yes. Through The Electric Car Scheme, you can bundle home charger installation into your salary sacrifice lease, saving 20–50% on the installation cost as well as the car. You own the charger outright even though it forms part of the scheme.
Does salary sacrifice affect my pension or mortgage?
Salary sacrifice reduces your gross salary, which may affect mortgage affordability assessments or pension contributions based on a percentage of gross pay. Ourguide on salary sacrifice and mortgages explains what to consider. Some employers offer enhanced pension contributions to offset this - check with your HR team.
Is there a minimum salary to take part in the scheme?
You must not sacrifice salary below the National Minimum Wage. In practice, this means employees on very low incomes may have limited access to the scheme. Our salary sacrifice eligibility guide covers the detail.
What happens if I leave my job during the lease?
The Electric Car Scheme includes Complete Employer Protection for all employers from day one - meaning businesses are not left with unexpected costs if an employee leaves mid-contract. Our early termination page explains what this means in practice for both employers and employees.
Calculate Your Own Electric Car Salary Sacrifice Saving
The examples above are designed to give you a realistic sense of what salary sacrifice looks like at your tax bracket. But every situation is different — your salary, your chosen car, your mileage, and your employer's scheme terms all affect the final figure.
The most accurate way to find your number is to use our free EV savings calculator. It shows your estimated monthly net cost, the total saving over the lease term, and how that compares to running an equivalent petrol car.
If you're an employer looking to offer the scheme to your team, book a demo and find out how straightforward it is to get started — there's no cost to set up and no risk from day one.
The UK's transition to electric vehicles is well underway. Salary sacrifice is the most effective way for most employees to be part of it — and The Electric Car Scheme is the UK's highest-rated provider to help you get there.
Expert Opinion from Thom Groot, CEO & Co-Founder at The Electric Car Scheme
"The 2026 picture for EV salary sacrifice looks materially different from 2025. We've delivered EVs to hundreds of UK employers in the first four months of 2026, across 32 different car makes. The Omoda 5 is now the most-leased car on the scheme, ahead of every European and American manufacturer.”
“What this tells HR and finance teams is that the market has changed, and salary sacrifice is now the most efficient way to give employees access to that change. The 4% Benefit-in-Kind rate on electric vehicles is the single most generous tax position any UK employee benefit has held in a decade. “
“The proportional saving is often largest on the more affordable models, which is why we're seeing high earners and lower earners increasingly choose from the same lineup."
Your Employer Doesn’t Offer The Electric Car Scheme Yet?
The most common reason employees miss out on salary sacrifice isn't that their employer said no. It's that no one ever asked.
You don't have to be the person who asks. Leave your employer's contact details and we'll send them a short, professional email: how the scheme works, why it's cost-neutral to the business, what's included as standard, and what setup looks like.
What we send isn't a sales pitch. It's a clear explanation of a cost-neutral employee benefit, written for HR and finance teams. Most employers are operational within three to four weeks. There's no cost to the business and no risk from day one. We currently work with thousands of leading UK employers in 2026, from teams of ten to enterprises of ten thousand.
What to Ask Your HR Team
If your employer doesn't yet offer The Electric Car Scheme, the fastest route is a short, direct conversation with HR or finance. These five questions are designed to get a useful answer quickly.
Does our company currently offer any EV salary sacrifice scheme?
If not, would you be open to reviewing one? The Electric Car Scheme is cost-neutral to the business, includes Complete Employer Protection from day one.
Who would be the right person to evaluate this? (Typically HR, Finance, or Operations.)
What's our process for adding a new employee benefit?
Could I share an explainer doc you can pass to the right decision-makers?
You can download our explainer pack here to share with your HR team.
Are you an employer?
BOOK A DEMOAre you an employee?
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ECS GUIDES AND ADVICE
Ready to Go Electric? Your Guides and Tools to a Smooth Switch
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How the Scheme WorksFind out how salary sacrifice can work for you or your business.
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The Charge SchemeSave 20-50% on all charging costs through salary sacrifice - at home, the office, or in public..
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Complete Employer ProtectionAll employers and drivers are protected from day 1.
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Used Electric CarsDiscover the most affordable way to drive electric. Cars delivered in 14 days.
Last updated: 06/05/2026
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. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. 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. Figures in this guide are drawn from real customer leases on The Electric Car Scheme in May 2026. Customer name and salary data is anonymised to protect their identities, however these are real quotes from our customers.
Copyright and Image Usage: All images used on this website are either licensed for commercial use or used with express permission from the copyright holders, in compliance with UK and EU copyright law. We are committed to respecting intellectual property rights and maintaining full compliance with applicable regulations. If you have any questions or concerns regarding image usage or copyright matters, please contact us at marketing@electriccarscheme.com and we will address them promptly.
