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.
If your employer offers an electric car salary sacrifice scheme, you may be able to lease an electric car through a deduction from your gross salary. The saving depends on your tax position, the vehicle, lease terms and scheme costs. Company car tax still applies: the benefit-in-kind percentage for a fully electric car is 4% for the 2026/27 tax year. Ask your employer for a personalised quote and compare the total cost before signing up.
The 4% figure is used to calculate the taxable company-car benefit; it is not your personal Income Tax rate. The tax you pay depends on the value of that benefit and your Income Tax rate. Read the GOV.UK company-car tax guidance.
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.