The Ultimate Guide to Electric Car Salary Sacrifice for Employees

Thinking about getting an electric car through work, but not sure whether it’s a good idea?

That’s completely normal. You’re changing your pay, signing a lease, and committing for a few years. It’s sensible to want the full picture before jumping in.

In this guide, we’ll explain: 

• What is an electric car salary sacrifice scheme?
• Can I get an electric car on salary sacrifice?
• What’s included in EV salary sacrifice?
• How quickly will I get my car?
• How much does it cost to have an electric car on salary sacrifice?
• What happens if I leave my job or take a break from work?
• Will salary sacrifice affect my benefits or student loan?
• Is EV salary sacrifice worth it?
• Can I get a used car on salary sacrifice?
• How can I get an EV on salary sacrifice?

An electric car salary sacrifice scheme lets you lease an EV through your employer by agreeing to give up part of your gross (pre-tax) salary each month. In return, you get to drive the car of your choice. 

Because the payments are taken from your salary before Income Tax and National Insurance are calculated, you pay less tax overall. On top of that, EVs have very low Benefit in Kind (BiK) tax compared to petrol and diesel vehicles. Together, this can significantly reduce the real monthly cost.

But here’s the important bit: you’re not getting a “free” car. You’re exchanging part of your salary for a benefit. That means:

• Your take-home pay will change
• You need to stay above National Minimum Wage after the deduction.
• It can affect things like pension calculations (depending on how your employer structures contributions)

Don’t worry - we’ll explain all of this clearly before you commit.

Probably, but it depends on your employer and your salary.

If your company offers an EV salary sacrifice scheme and your post-sacrifice pay would stay above the National Minimum Wage, then yes, you can usually lease an electric car through work this way.

It can be a genuinely cost-effective option, and many employees end up paying significantly less than they would through a private lease.

That said, it’s not automatic and it’s not universal. You’ll want to check:

• Whether your employer offers the scheme
• That your salary remains above the legal minimum after deductions
• How it might affect things like pension contributions or borrowing

When those boxes are ticked, salary sacrifice can be a smart way to drive electric with predictable monthly costs and fewer upfront expenses.

If you’re not sure whether you qualify, your HR team should be able to help. And you can always book a quick call with our team if you’d like to know more about how it works.

With our salary sacrifice scheme, everything you need to drive an EV is bundled into one monthly payment.

With our salary sacrifice scheme, everything you need to drive an EV is bundled into one monthly payment:

• The car itself
• Insurance
• Servicing and maintenance
• Breakdown cover

We’ll also throw in either a home charger (yep, we’ll install it for you too) or £600 of credit for Electroverse, Europe’s biggest public charging network. The choice is yours!

We’ve designed it to make life simple for you, with no hidden bills or surprise costs. 

Most people have their EV delivered within a few weeks once the paperwork is done, but exact timing can vary depending on things like model availability. It’s usually pretty quick, but it’s worth leaving a little wiggle room just in case.

Estelle, Head of People at Whisper TV, couldn’t believe how quick it was to set up our scheme and get employees on the road. 

“Within a month it was all set up, all gone through, all the paperwork done,” she said. “It took less than a week for our first employee’s car to be delivered, which was amazing.”

It depends. Your monthly cost will vary based on a few key factors:

• Which EV you choose. Bigger batteries, higher spec, or premium models usually mean slightly higher payments.
• The length of the lease. Longer leases can lower monthly payments, but they lock you in longer.
• Employer contributions. If your company offers a car allowance alongside salary sacrifice, your monthly cost could be even lower.

To give you a rough idea, here’s an example of what your payslip could look like each month, including the tax savings you’ll make:

Keep in mind: Everyone’s situation is different. Your actual savings depend on your salary, tax bracket, and the EV you pick. If you’re not sure, it’s always worth running the numbers or speaking with HR before signing up.

Life happens, and we get that. Our salary sacrifice scheme includes early termination protection: once you’ve had your EV for more than three months, you can return it without extra fees if you leave due to resignation, redundancy (including voluntary), or dismissal.

If your circumstances change before three months are up, there’s usually flexibility too. You may be able to transfer your lease to another eligible colleague (called a novation), keeping the car in your company and avoiding fees.

For other life events, like parental leave or long-term sickness, you can often keep your car: up to 12 months for unpaid parental leave, or three months for long-term sick leave, with no extra cost.

This way, you get peace of mind that your EV won’t become a stress point if life throws a curveball.

Salary sacrifice can change the way some things are calculated, like certain benefits or student loan repayments, because it reduces your gross pay. That doesn’t automatically mean it’ll have a big impact, but it depends on your personal situation.

If you want the full picture, check out our guide on how salary sacrifice can affect your salary, pension, and benefits.

Salary sacrifice for an electric car can save you a fair chunk on tax, and if you’re moving from petrol or diesel, your running costs will likely drop too. For many people, it’s a no-brainer. But it’s still a commitment, so it’s worth thinking it through.

To figure out if it’s right for you, consider your personal circumstances: your salary, your tax bracket, and how much you drive each week. These factors all affect how much you’ll save and how practical the scheme will be for your lifestyle.

Most salary sacrifice schemes are all about brand-new cars, but not everyone wants to wait for a new model or stretch to a full-price EV. That’s why our EV salary sacrifice scheme also offers approved used cars.

These are less than 4½ years old, with fewer than 70,000 miles, and they’ve been spruced up to a high standard. They still come with all the perks: free home charger, maintenance, servicing, and breakdown cover. 

With an approved used car, you can get one of the best EVs on the market in a matter of weeks, for a much cheaper price than getting one new.

If your company already has a salary sacrifice scheme, the easiest step is to have a chat with HR or whoever manages benefits. They’ll let you know what’s available and how to get started.

If your employer doesn’t yet offer EV salary sacrifice, don’t worry: you’re not out of options. You can always encourage your company to join up – just put them in touch with us, and we’ll answer all their questions. 

And if you just want to explore EVs, how they work, and all the support available, our EV Hub is the best place to start.