If you’re considering making the switch to an electric vehicle then it’s worth checking if your employer offers (or would consider offering) an Electric Car Salary Sacrifice Scheme.
Salary sacrifice allows eligible employees to lease an electric car through their employer in exchange for part of their gross salary. You may save on Income Tax and National Insurance, but savings depend on your salary, tax position, vehicle and scheme terms.
Zero-emission company cars have a Benefit in Kind (BiK) appropriate percentage of 4% for the 2026/27 tax year. This percentage is used to calculate the taxable benefit; the tax you pay depends on your Income Tax rate.
If you’re an employer looking to set up an EV salary sacrifice scheme, Octopus energy are a great company that can help! Their website provides lots of useful information on an EV scheme from an employers point of view, follow the link below.