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EV salary sacrifice
Estimate the take-home cost of a zero-emission salary-sacrifice car, including 2026/27 benefit-in-kind tax.
Open calculatorEngland / 2026/27
Electric car salary sacrifice calculator
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Estimated take-home cost / month
| 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.
Check the inputs to calculate a result.
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
- 2026/27 zero-emission car benefit percentage 4%
- Salary sacrifice restrictions and benefit taxation
- Company car taxable list value and benefit calculation
- Personal Allowance and adjusted-net-income taper
- Category A rates and annual NI thresholds
- NI normally deducted per pay period
- Separate employment NI liabilities and aggregation exceptions
- Plan thresholds, rates and simultaneous undergraduate/postgraduate deductions
- Loan earnings follow Class 1 NI earnings; pension net pay does not lower loan earnings
- Multiple employers and Self Assessment loan aggregation
- Voluntary repayments may not help before write-off and are not refundable
- Age 21+ National Living Wage £12.71 per hour from April 2026
Checked 2026-10-25. Estimate only, not financial advice.