Finance
Salary sacrifice for an EV: how the 2% BIK actually works
The lease comes off gross pay. You still pay 2% benefit-in-kind. If you leave the job, the car usually goes back.
9 minute read · Updated 2026-08-14
Rent an EV
Finance
Sourced from GOV.UK, HMRC or DVLA — not a forum screenshot.
The mechanics
Your employer contracts with a salary-sacrifice provider. A monthly amount is deducted from your gross salary. That reduces income tax and National Insurance.
You then pay Benefit in Kind on the car. For a zero-emission car in 2025/26 that rate is 2% of the P11D value, taxed at your marginal rate.
Insurance and servicing are often in the monthly figure. Mileage caps and damage charges still exist. This is a lease with tax wrapping, not a gift.
Questions
Do I own the car?
No. It is a lease in the employer’s name.
What if I leave?
Most schemes require the car back. Some let a new employer take it over. Read the scheme booklet, not a tweet.