Gross Salary Deduction
Payments are taken directly from your salary before income tax and National Insurance are calculated, significantly reducing your taxable income.
An EV salary sacrifice scheme is a government-approved employee benefit where you exchange a portion of your pre-tax salary for a brand-new electric car. Because the payment comes out before tax, you can save up to 40% to 50% on leasing, insurance, and maintenance costs.
Payments are taken directly from your salary before income tax and National Insurance are calculated, significantly reducing your taxable income.
By lowering your gross pay, you pay less to HMRC every month. Higher-rate taxpayers can see total savings of up to 42% on their vehicle costs.
One single monthly payment covers your brand-new EV, comprehensive insurance, routine maintenance, breakdown cover, and even replacement tyres.
See the difference between a traditional Personal Contract Hire (PCH) and our Salary Sacrifice scheme for the Tesla Model 3.
| Comparison Item | Personal Lease (PCH) | Salary Sacrifice |
|---|---|---|
| Monthly Gross Cost | £489.00 | £489.00 |
| Tax & NI Savings | £0.00 | £185.82 |
| Benefit in Kind (BIK) Tax | £0.00 | -£9.78 |
| Maintenance & Insurance | Customer Pays Extra | Included |
| Total Monthly Net Cost | £560.00 (Est) | £313 |
Personal Lease (PCH)
£489.00
Salary Sacrifice
£489.00
Personal Lease (PCH)
£0.00
Salary Sacrifice
£185.82
Personal Lease (PCH)
£0.00
Salary Sacrifice
-£9.78
Personal Lease (PCH)
Customer Pays Extra
Salary Sacrifice
Included
Personal Lease (PCH)
£560.00 (Est)
Salary Sacrifice
£313
Figures based on a 40% tax payer over 36 months / 10,000 miles per annum.
Already have a provider? We specialise in secondary supply.
Even if your company has an existing scheme, CheapEV can act as a secondary supplier to provide better vehicle availability, faster delivery times, and competitive benchmarking to ensure you always get the best deal. We work alongside your current provider with zero disruption to your payroll.
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We help companies of all sizes set up cost-neutral EV salary sacrifice schemes in as little as 48 hours. Download our employer pack to share with your HR team.
Salary Sacrifice is a government-backed initiative which lets employees exchange a portion of their pre-tax salary for certain benefits. This scheme creates a tax-efficient way for employees to lease an EV through their employer. Allowing you to swap some of your gross salary to gain a brand new car with added benefits.
BIK is a tax on benefits provided by your employer. Fully electric cars have a low BIK rate (2% in 2023/24), making them significantly cheaper to tax than petrol or diesel cars.
An employee agrees to give up a portion of their pre-tax salary in return for a leased electric car. The employer arranges the lease, and the monthly cost is deducted from the employee’s gross salary, allowing them to use earnings that would have otherwise been paid in tax towards an EV lease.
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The charging time for an electric vehicle depends on several factors, including the power output of the charging station, the size of the vehicle's battery, and the capacity of its onboard charger. These elements determine how quickly the battery can be recharged. Most EVs listed on our website provide detailed information to help you calculate how long it will take to charge your new vehicle.
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