Electric car through work: what you save
Lease an electric car through work and pay for it from your pay before tax. See what it really costs you.
Your answer
Enter the lease cost, the list price and your salary to see what you save.
About this calculator
For employees whose employer offers an electric car salary sacrifice scheme.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
You give up part of your pay for the lease, so you don't pay income tax or National Insurance on it. In return, 4% of the car's list price is taxed as if it were pay (5% next year). The difference is your saving.
Worked example
A £500-a-month electric car through salary sacrifice costs you about £350 a month in take-home pay, saving £1,800 a year compared with paying the lease yourself.
2026/27 tax year · electric car · salary £60,000
| Lease payments given up from your pay | £6,000 |
|---|---|
| Less the income tax and National Insurance you no longer pay on it | − £2,520 |
| Plus tax on the car (4% of £45,000) | + £720 |
| Real cost to you | £4,200 |
Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.
Questions people ask
What if I leave my job?
Most schemes charge a fee to end the lease early, though many include cover for redundancy or long-term sickness. Check yours.
Does it affect my pension or mortgage?
It lowers your salary on paper, which can affect a pension worked out on salary and how much a lender will offer. Ask your employer.
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