Electric Car Salary Sacrifice

EV

Electric Car Salary Sacrifice — Drive for Almost Nothing

Kate earns £50,000 and needs a car. A personal lease on a Tesla Model 3 costs her about £450/month after tax. Through her employer's salary sacrifice EV scheme, she gets the same car for an effective cost of roughly £250/month. Why? The Benefit in Kind on a zero-emission car is only 3% (2025/26), compared to 25–37% for a petrol car.

Because it's salary sacrifice, Kate saves income tax AND National Insurance on the amount. Her employer saves their 13.8% NI too. Insurance, maintenance, tyres, and breakdown cover are all included in the monthly payment. She doesn't need to worry about depreciation, MOT, or surprise repair bills.

But it gets even better. Kate's EV has a 60 kWh battery — that's a massive energy store sitting on her driveway. If she pairs it with solar panels and a V2H charger, her car becomes her home battery. Read the full EV + Solar strategy →

£6,000/year saved
Higher-rate taxpayer vs personal lease
CapyPay Top Tips
  • Only pure electric (zero-emission) cars get the 3% BiK. Hybrids are much higher — don't confuse them
  • Choose a car with V2H (Vehicle-to-Home) capability if possible — your car becomes a home battery
  • Compare the salary sacrifice quote to a personal lease AND to buying outright. Sacrifice almost always wins for 40% taxpayers
  • BiK rates are locked in: 3% (2025/26), 4% (2026/27), 5% (2027/28). Start now while it's cheapest
  • Check if early termination is possible — most schemes allow it with a fee if your circumstances change

→ Action: Ask HR for EV salary sacrifice quotes. Compare to personal lease.

Next perk: Child Benefit →
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Now you know the perks

See what they add up to over 1, 5, 10, and 20 years.

See the projections →