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Electric car salary sacrifice is an employee benefit that can give you access to a brand-new electric company car through your employer.
You agree to reduce your gross salary by a set amount each month in return for the car. You will also pay Benefit-in-Kind (BIK) tax, but electric cars currently attract a lower company-car tax percentage than many petrol or diesel vehicles.
Your actual cost and potential saving will depend on the car you choose, your salary and tax position, the terms of your employer’s scheme and what is included in the monthly package.
If you already have an EV as part of your employer’s electric car scheme, you’ll find everything you need to know on your EV Hub or intranet.
Of course, if there’s anything not covered, or you just need a little extra support or advice, just get in touch with our award winning customer service team and we will be happy to help.
Did you know, if you have maintenance as part of your vehicle contract, the quickest way to book your vehicle service, MOT or repairs is to visit My Novuna Vehicle and enter your vehicle registration number.
Alternatively, to speak to a member of the team, fill in the form below.
With electric car salary sacrifice, the agreed amount for your car is deducted from your gross salary through payroll. This can reduce the Income Tax and National Insurance you pay on your cash salary.
You will still pay Benefit-in-Kind tax on the electric company car. Your overall cost will depend on the amount of salary you sacrifice, the car’s taxable value, the applicable Benefit-in-Kind percentage, your Income Tax rate and the services included in your employer’s scheme.
Before joining, you will receive a personalised quotation showing the estimated reduction in your take-home pay and the Benefit-in-Kind tax payable. This will help you understand the likely monthly cost and decide whether salary sacrifice is right for you.
A Novuna salary sacrifice package brings together a brand-new electric car with many of the costs of keeping it on the road, all through one convenient monthly salary deduction.
With servicing, maintenance, tyres, breakdown support and insurance taken care of, employees have less to organise and greater confidence about what their new car will cost to run.
The 'from' price quoted is an illustrative net price based on 47 year old, 40% taxpayer, taking out a 48 month lease with 8,000 miles per year. Insurance is usually the biggest variable. Pricing correct as of 25/08/2026.
One of the biggest advantages of choosing an electric car through salary sacrifice is the significantly lower Benefit-in-Kind tax (BIK) compared with petrol and plug-in hybrid alternatives.
That means you and your employees can plan ahead with greater confidence. Electric vehicle BIK rates are already confirmed through to the 2029/30 tax year, rising gradually from 4% in 2026/27 to 9% in 2029/30 while maintaining a significant advantage over higher-emission vehicles.
With Novuna Salary Sacrifice, you can turn that tax advantage into a benefit that supports both your people and your wider business objectives. A well-designed scheme can help drive employee uptake, enhance your total reward offering, and contribute to your decarbonisation plans. With future BIK rates confirmed up to 2030, you have greater visibility to help you plan your approach with confidence.
*Illustrative PHEV producing 1–50g/km with a 40–69 mile electric range for 2026/27 and 2027/28. From 2028/29, cars producing 1–50g/km move to 18%, rising to 19% in 2029/30.
**Illustrative petrol car producing 120–124g/km. Rates for cars above 50g/km rise by one percentage point in 2028/29 and again in 2029/30. HMRC confirms zero-emission rates of 7% and 9% for the final two years and 18%/19% for 1–50g/km vehicles.
Depending on your employer’s scheme and the vehicle selected, your monthly package may include the electric car and several ongoing motoring costs. Check your personalised quotation and scheme terms to confirm exactly what is included.
A home charge point (if you need one)
Fully comprehensive insurance
All servicing, maintenance, and repairs
Tyre replacement or repair
UK-wide breakdown cover
Road tax
When comparing salary sacrifice with buying or financing a car yourself, consider the complete cost of each option. This may include the vehicle payment, insurance, servicing, maintenance, tyres, breakdown cover, Benefit-in-Kind tax and charging costs.
Electric car salary sacrifice is an employee benefit offered through an employer. You agree to reduce your gross salary by a set amount in return for the use of an electric company car. The agreed amount is deducted through payroll, and you pay Benefit-in-Kind tax on the vehicle.
It can reduce the cost for some employees, but savings are not guaranteed. Your cost will depend on the car selected, the amount of salary sacrificed, your tax position, Benefit-in-Kind tax and what is included in the package. Review a personalised quotation before deciding whether salary sacrifice is right for you.
Yes. An electric car provided through salary sacrifice is treated as a company car, so you normally pay Benefit-in-Kind tax. The amount is based on the car’s taxable value, the applicable Benefit-in-Kind percentage and your Income Tax rate.
Depending on your employer’s scheme, the package may include the car, comprehensive insurance, servicing, maintenance, repairs, tyres, breakdown cover and Vehicle Excise Duty. A home charge point may also be available in some circumstances. Your quotation and scheme terms will confirm the exact inclusions.
Electricity used to charge the car is normally payable separately. You may also be responsible for public charging, fines, excess mileage, damage beyond fair wear and tear and other charges identified in the scheme terms.
No. A salary sacrifice car is a company car provided for your use during the agreement. You do not own it, and it will normally be returned at the end of the term unless another arrangement is offered.
Yes. Salary sacrifice reduces your contractual cash salary and may affect pension contributions, statutory payments, earnings-related benefits or affordability assessments. The effect will depend on your circumstances and how your employer operates the scheme.
This depends on your employer’s scheme and the reason the agreement ends. Early termination arrangements may differ if you resign, are made redundant, take parental leave or experience another qualifying lifestyle change. Check the scheme terms before choosing a car.
No. Your employer must offer a scheme, and you must meet its eligibility requirements. Salary sacrifice deductions cannot reduce your cash earnings below the National Minimum Wage, and other affordability or eligibility checks may apply.
Comprehensive insurance may be included in the package, subject to the scheme and insurer’s terms. Additional drivers may be permitted if they meet the eligibility requirements. Check your quotation or scheme documents for details.
Yes. You will select or agree an annual mileage allowance when ordering the car. Additional charges may apply if the vehicle exceeds the total contracted mileage when it is returned.
A home charge point may be available as part of the package, depending on your employer’s scheme, property, parking arrangements and installation requirements. A survey or other checks may be required to confirm suitability.