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.