EV Salary Sacrifice Calculator 2026/27

Electric vehicles through employer salary sacrifice attract a Benefit in Kind (BIK) rate of just 2% for 2026/27 (confirmed until 2028). This makes them exceptionally tax-efficient: instead of buying a car from net salary, your employer leases it and deducts the cost before tax and National Insurance.

A higher-rate taxpayer sacrificing £450/month saves on 40% Income Tax + 2% NI on the sacrifice, paying only 2% BIK on the car value — typically saving £2,000–£5,000/year versus buying outright.