How Salary Sacrifice Can Save You Thousands on Your Next EV

With the UK’s push towards greener transport and the rising cost of living, more drivers are turning to electric vehicles (EVs) — and salary sacrifice schemes are making them more accessible than ever. If you're employed and your company offers this benefit, you could save thousands on your next EV lease.

What Is Salary Sacrifice?

Salary sacrifice is a government-approved scheme where you agree to give up a portion of your gross salary in exchange for a non-cash benefit — in this case, an electric car lease. Because the deduction is made before tax and National Insurance, you pay less overall.

How Much Can You Save?

Let’s say you lease a £400/month EV through salary sacrifice. Instead of paying from your net salary, the cost is deducted from your gross pay. This could reduce your tax and NI contributions by up to 40%, depending on your income bracket.

Example:

• EV Lease Cost: £400/month
• Tax Saving: ~£160/month
• Net Cost to You: £240/month

Over a 3-year lease, that’s a potential saving of £5,760.

Why It Works Best with EVs

Electric vehicles benefit from ultra-low Benefit-in-Kind (BiK) tax rates — just 2% in 2025. That means you get a brand-new EV with minimal tax implications, making salary sacrifice especially attractive for zero-emission cars.

What’s Included?

Most salary sacrifice EV leases are fully maintained. That means:

• Insurance
• Servicing
• Road tax
• Breakdown cover

All bundled into one monthly payment.

Who Can Benefit?

• Employees at companies offering salary sacrifice
• HR teams looking to boost benefits packages
• Businesses aiming to reduce fleet emissions

Salary sacrifice is a win-win: you get a brand-new EV at a lower cost, and your employer supports sustainability. At Britannia Car Leasing, we help businesses and employees unlock these savings with ease.