Question 1

How is the real cost of electric car salary sacrifice worked out?

Accepted Answer

The real cost is the reduction in take-home pay after allowing for tax and NI savings and the extra company car BIK tax. This calculator recomputes tax bands and the personal allowance before and after the sacrifice instead of assuming one tax-saving percentage.

Question 2

Do I still pay company car tax on an electric car?

Accepted Answer

Yes. A fully electric company car has a taxable benefit based on its P11D value and the electric BIK percentage: 4% in 2026/27 and 5% in 2027/28. The tax on it depends on your income, tax bands and any effect on your personal allowance.

Question 3

Can salary sacrifice take my pay below minimum wage?

Accepted Answer

No. Your employer must ensure your cash earnings remain at or above the applicable minimum wage. This tool uses an adult full-time reference, so payroll still needs to check your age, actual hours and each pay period.

Question 4

Will salary sacrifice affect my pension or benefits?

Accepted Answer

It can, because contributions and entitlements may depend on earnings. Some employers calculate pension contributions using your original salary. Confirm how your employer treats pension contributions, statutory pay, benefit entitlements and leaving the scheme.

Question 5

Is the personal lease comparison a quote?

Accepted Answer

No. It assumes you pay the same monthly amount from take-home pay. Actual personal lease prices and packages may differ. Compare deposits, mileage limits, insurance, maintenance and early termination terms before deciding.

Running electric cars through the business?

Running electric cars through the business?

Electric Car Salary Sacrifice Calculator

Running electric cars through the business?

Running electric cars through the business?