Choose calculatorEV salary sacrifice

England / 2026/27

Electric car salary sacrifice calculator

Non-apprentice age 21+. Annual minimum-wage check; employer must check each pay period.

Calculations run in your browser.

Estimated take-home cost / month

£343.33
EV salary sacrifice breakdown
Annual gross sacrifice£6,000.00
Taxable car benefit / year£1,600.00
Income Tax on car benefit / year£640.00
NI reduction / year£120.00
Loan repayment reduction / year£0.00
Annual take-home cost£4,120.00

Zero-emission car available all year, England 2026/27, 4% benefit rate. Uses P11D list value, not lease cost. No pension contributions, employee capital contributions, cash-alternative rules, private fuel benefit or separate scheme charges. Assumes the benefit is Class 1A and not subject to employee Class 1 NI or payroll loan deductions. Employer must check scheme eligibility and minimum wage.

Calculation details

Salary and car benefit

The sacrifice reduces cash salary, employee NI earnings and payroll loan earnings. The car’s taxable benefit adds back P11D list value × the applicable percentage to Income Tax income. For a zero-emission car available all year in 2026/27, the rate is 4%.

Example

On £60,000 salary, a £500 monthly sacrifice and £40,000 P11D value give a £1,600 taxable benefit. With no pensions or loans, annual take-home cost is £4,120, or £343.33 per month.

Limits

Zero-emission cars only. No pension contributions, employee capital payments, part-year availability, cash alternatives, private fuel or extra scheme fees. Employer must confirm minimum-wage compliance and the actual benefit calculation.

Sources
Estimated take-home cost / month£343.33