Salary Sacrifice Your Next Car
Getting a new car through work has never been more affordable. With salary sacrifice cars, you can drive a new electric vehicle whilst saving 20-50% compared to traditional car leasing.
Whether you're an employee looking to upgrade your car or an employer wanting to offer valuable benefits, our electric car salary sacrifice scheme makes premium vehicles accessible to everyone.
What is salary sacrifice?
Salary sacrifice is an arrangement where an employee agrees to reduce their gross salary in exchange for non-cash benefits. These benefits commonly include pension contributions, childcare vouchers, or a company car. Salary sacrifice lowers taxable income, which can reduce income tax and national insurance payments.
Our picks for cars you can salary sacrifice in January 2026
Our salary sacrifice calculator shows exactly how much you could save on any electric vehicle. Explore some of the most popular salary sacrifice cars available through The Electric Car Scheme.
Tesla Model 3
344 miles range
£477/mon
Polestar 4 Estate
385 miles range
£489/mon
Omoda 5 Electric
267 miles range
£260/mon
Ford Explorer
233 miles range
£372/mon
Renault 5 E-tech
192 miles range
£229/mon
Alpine A290
224 miles range
£320/mon
Jaecoo 5 Electric
248 miles range
£323/mon
MG Motor UK IM5
3045 miles range
£377/mon
Save 20-50% on the cost of your next EV lease through our electric car salary sacrifice scheme.
How Benefit in Kind affects salary sacrifice
Benefit in Kind, or BIK, is the tax you pay when you receive a benefit from your employer, such as a company car.
When you choose a car through salary sacrifice, the lease cost is taken from your gross salary before tax, reducing your taxable income. You then pay BIK tax on the car, based on its list price, emissions and your tax band.
Electric cars have very low BIK rates. This means the tax you pay is minimal, making electric cars extremely cost effective through salary sacrifice. The result is a lower monthly cost compared to leasing privately, with your take home pay reduced by the net cost after tax savings and BIK.
How Does Salary Sacrifice Work For Employees
Your employer leases an electric car
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The employer agrees to provide the car in exchange for the employee looking after the car and sacrificing gross salary to pay for it.
Employees get the car (as a benefit) in exchange for salary
Sacrificed salary is not taxable, saving thousands of pounds
The employee saves 20-50% on the cost of any electric car by paying from salary before tax.
Everything's Included with
One Simple Payment
When you choose vehicle salary sacrifice through The Electric Car Scheme, everything you need is bundled into your monthly payment.
New Electric Car - Choose from hundreds of models
Optional Comprehensive Insurance - Fully comprehensive cover included
All Maintenance - Servicing, repairs, and warranties covered
Breakdown Cover - 24/7 roadside assistance across the UK
Road Tax & MOT - All legal requirements handled
Optional Home Charger - Installation and hardware included
Replacement Tyres - When worn, we'll replace them
Risk Protection - Full support if the unexpected happens
Charging - Access to thousands of public charging points and The Charge Scheme
This comprehensive package means no hidden costs or unexpected bills. Everything is covered in your salary sacrifice scheme, giving you complete peace of mind.
Understanding what is salary sacrifice can help you maximise your savings. By paying for your car before tax and National Insurance, you reduce your taxable income whilst getting access to a premium electric vehicle.
Frequently Asked Questions
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Everything you need is included: the vehicle, optional comprehensive insurance, maintenance and servicing, breakdown cover, road tax, MOT, optional home charger installation, replacement tyres, and risk protection. It's a complete package with no hidden costs.
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Our Complete Employer Protection means you are protected. Your employer faces no financial penalties.
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Savings typically range from 20-50% compared to personal leasing. The exact amount depends on your tax rate, chosen vehicle, and contract terms. Use our salary sacrifice calculator to see your specific savings.
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Your gross salary is reduced for tax purposes, which may affect calculations based on salary multiples. However, many lenders now recognise salary sacrifice arrangements. For pensions, most auto-enrolment schemes use your pre-sacrifice salary, protecting your contributions.
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Yes, you can add additional drivers to the insurance policy. This includes family members or partners, subject to standard insurance checks and criteria.
It's crucial to understand the terms of your specific agreement and insurance policy.
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Once approved, delivery typically takes 8-16 weeks for new vehicles, depending on the model and manufacturer. Used electric vehicles through our used car salary sacrifice programme are often available within 2-4 weeks.
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Item descriptionWe can work with your HR team to set up the scheme at no cost to your employer. The process is straightforward, and we handle all the administration. Many employers find it's a valuable benefit that helps attract and retain talent whilst supporting environmental goals.
Ready to Get Started?
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Our blog is to provide readers with comprehensive information about the Electric Car Scheme, including its benefits, challenges, and the future of Net Zero. We cover a range of topics, from the technology behind electric cars and how they work, to the different models available on the market. Whether you're a seasoned electric car owner, or just starting to explore the possibilities of this exciting technology, this blog is the perfect resource for you.
