Salary Sacrifice Car Scheme Calculator
How to Use This Calculator
Your employer deducts the sacrifice amount from gross pay before tax and NI — saving you money.
The manufacturer's list price (P11D value) is used to calculate the Benefit in Kind (BiK) tax.
Electric vehicles have a 2% BiK rate in 2025/26, making them the most tax-efficient choice.
The calculation shows tax + NI savings minus the BiK tax cost you incur.
Frequently Asked Questions
What is a salary sacrifice car scheme?
Your employer leases a car and you sacrifice gross salary in exchange. Because the sacrifice reduces your taxable pay, you save income tax and National Insurance on the amount sacrificed.
Why are electric cars especially beneficial?
EVs have a 2% BiK rate in 2025/26, rising to 3% in 2026/27 and 4% in 2027/28. Compare this to 25%+ for petrol/diesel — the BiK tax cost is minimal, maximising net savings.
What is Benefit in Kind (BiK)?
BiK is the taxable value of having private use of a company/sacrificed car. You pay income tax on the BiK value (P11D × BiK%). Your employer pays employer NI on the BiK too.
Does salary sacrifice affect my pension?
Potentially — if your pension contributions are percentage-based on salary, a lower salary means lower pension contributions (and lower employer contributions too). Check with your pension provider.
Are all costs included in the sacrifice?
Most salary sacrifice car schemes include: lease, insurance, maintenance, road tax, and breakdown cover. Fuel is usually excluded. Check your employer's scheme details.
What happens if I leave my job?
If you leave mid-lease, you may be liable for early termination charges. The remaining lease obligation is usually passed to you or your new employer. Check the termination provisions before signing.
Can I include a family member on the insurance?
This depends on your employer's scheme. Most permit named drivers. The BiK is still only calculated on the employee's use — adding a family member as a named driver doesn't increase the BiK charge.
Is salary sacrifice worth it for basic rate taxpayers?
For basic rate taxpayers (20% income tax + 8% employee NI = 28% saving), salary sacrifice still usually saves money on electric cars given the 2% BiK rate. Higher-rate taxpayers (40%) save more.