What's Left, step 3 of 7: Can I afford my car?
EV salary sacrifice calculator
Find out what an electric car through a salary sacrifice scheme really costs you each month, after tax and National Insurance savings.
The real cost to you
£352.00
a month. That is £98 a month less than paying £450 out of your take-home pay.
How it adds up
| Item | Year | Month |
|---|---|---|
| Salary sacrificed | £5,400.00 | £450.00 |
| Income Tax saved | −£1,080.00 | −£90.00 |
| National Insurance saved | −£432.00 | −£36.00 |
| Company car tax at 4% | £336.00 | £28.00 |
| Real cost to you | £4,224.00 | £352.00 |
This is an estimate for England, Wales or Northern Ireland, not advice. Schemes can also affect pension contributions, borrowing and your salary must stay above the National Minimum Wage.
How EV salary sacrifice saves you money
You give up part of your gross salary before tax. Because you pay no Income Tax or National Insurance on that part, a £450 car costs you £324 after those savings at the basic rate.
You then pay company car tax on the car. For an electric car that is 4% of the list price in 2026/27, which adds £28 a month here. Higher-rate taxpayers save 40% Income Tax but pay 40% on the benefit too.
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These results are an estimate, not financial advice. They use the 2026/27 rates in force on 24 October 2026 and the inputs shown, so your actual tax, pay or costs may differ. Before making a decision about your money, check the figures with HMRC or your provider, or speak to a regulated financial adviser. Free, impartial guidance is available from MoneyHelper.
This page explains the rules using the 2026/27 rates in force on 24 October 2026. It is general information, not financial advice. For decisions about your own money, speak to a regulated financial adviser, or get free, impartial guidance from MoneyHelper.