The 10 Best EVs To Salary Sacrifice
Looking to make the switch to electric but unsure which vehicle offers the best value through salary sacrifice? You're not alone. With the growing popularity of electric vehicles and the significant tax advantages offered through salary sacrifice schemes, more UK employees are exploring this cost-effective route to EV ownership. Drawing from The Electric Car Scheme's data on their most popular vehicles this year, we've compiled an in-depth look at the top 10 EVs that are winning over drivers.
From the tech-forward Tesla Model 3 to the budget-friendly MG ZS, these vehicles represent a diverse range of options to suit different lifestyles and budgets. We'll explore who each car is best suited for, why it's particularly attractive through salary sacrifice, and what you can expect in terms of range and practicality.
So whether you're a company car driver looking to minimise your benefit-in-kind tax, an environmentally conscious commuter, or simply someone who wants to embrace the future of driving while making substantial savings, read on to explore the best salary sacrifice cars.
Tesla Model 3
The Tesla Model 3 stands as the perfect entry point for tech-savvy professionals and small families who value performance and innovation. It is a sleek and sophisticated saloon that combines the best of Tesla’s cutting-edge technology with a design that is both stylish and practical - the perfect car to salary sacrifice.
With a range spanning from 278 miles for the base model to an impressive 374 miles for the Long Range variant, this sedan easily handles both daily commutes and longer journeys, while its minimalist interior and cutting-edge autopilot features appeal to those who appreciate a forward-thinking driving experience.
Tesla Model 3 RWD | |
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Average Monthly Salary Sacrifice Including VAT | £891 |
Employee Income Tax Savings | -£356 |
Employee National Insurance Savings | -£18 |
Average BiK Tax Over Term | £50 |
You Pay/Net Cost | £567 |
The table above shows how much employees can save with salary sacrifice schemes, like The Electric Car Scheme. The costs in this table and all following tables in this blog are based on a 40% taxpayer who wants to travel 10,000 miles per annum and wants the car for a three year lease period.
Tesla Model Y
Adventurous families and outdoor enthusiasts will find their match in the Tesla Model Y, which blends the Model 3's celebrated technology with enhanced practicality and a higher riding position. The crossover's spacious interior and generous cargo capacity make it a standout choice for salary sacrifice arrangements, particularly given its competitive benefit-in-kind tax rates and affordable monthly payments.
Delivering between 283 and 331 miles of range depending on the configuration, the Model Y proves that you don't need to compromise on performance or utility when going electric. The new and improved Tesla Model Y Juniper is also rumoured to be available in 2025, although specifics are unknown at the moment! So, if you’re considering a Model Y, maybe wait until the Juniper is released…
Tesla Model Y Long Range AWD | |
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Average Monthly Salary Sacrifice Including VAT | £729 |
Employee Income Tax Savings | -£393 |
Employee National Insurance Savings | -£15 |
Average BiK Tax Over Term | £68 |
You Pay/Net Cost | £491 |
MG 4
Value-conscious buyers seeking premium features without the price tag will be drawn to the MG4, which has disrupted the electric vehicle market with its impressive capabilities and is the first fully electric MG hatchback. This is the most affordable EV on this list to salary sacrifice, costing as little as £290 a month!
As a salary sacrifice option, it's particularly appealing to first-time EV adopters and urban professionals, with plenty of models to choose from (five: SE EV, SE EV Long Range, Trophy EV Long Range, Trophy EV Extended Range and the XPOWER), you’ll be spoilt for choice. The range varies from 218 miles in the base model to an impressive 323 miles in the Extended Range version, making it a practical choice for all of your driving needs.
MG4 Trophy EV Long Range | |
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Average Monthly Salary Sacrifice Including VAT | £431 |
Employee Income Tax Savings | -£172 |
Employee National Insurance Savings | -£9 |
Average BiK Tax Over Term | £40 |
You Pay/Net Cost | £290 |
You can calculate your salary sacrifice savings by using The Electric Car Scheme’s quote tool. All you have to do is input your salary, lease terms and payment profile and it’ll give you a personalised, monthly breakdown per car.
Kia Niro EV
The Kia Niro EV has carved out its niche among practical-minded families and commuters who prioritise reliability and versatility. As if the salary sacrifice savings weren’t enough, Kia has a 7-year warranty and a strong reputation for build quality, making it a good choice for long-term leasing, both economically but also from a safety perspective. The space inside the Kia Niro is very accommodating, and the boot space is impressive, offering 475 litres, perfect if you have a small dog!
Offering between 282 and 339 miles of range, depending on battery size, the e-Niro delivers exceptional practicality without compromising on comfort or efficiency.
Kia Niro EV 2 | |
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Average Monthly Salary Sacrifice Including VAT | £696 |
Employee Income Tax Savings | -£279 |
Employee National Insurance Savings | -£14 |
Average BiK Tax Over Term | £46 |
You Pay/Net Cost | £450 |
Jaguar I-Pace
Luxury SUV enthusiasts seeking a more distinctive electric vehicle find their match in the Jaguar I-PACE, which combines traditional British refinement with cutting-edge electric technology. With several trim options available, you will be able to find the model best suited to your preferences.
While it commands a higher price point, its position in salary sacrifice schemes is justified by its premium status and strong resale values, appealing particularly to higher-earning professionals who also have a family.
The I-Pace has an official range of 292 miles and coupled with impressive performance credentials, it is a compelling alternative to conventional luxury SUVs.
Mercedes Benz EQA
The Mercedes-Benz EQA caters to urban professionals and small families who refuse to compromise on badge prestige when transitioning to an EV. It is a great alternative to the Ford Mustang or Audi Q4 e-tron. Taking its design from the combustion-engine Mercedes GLA, it is very nice to look at, both inside and out and is eco-friendly - a win-win!
The range of up to 264 miles might not be top of the class, but it's more than sufficient for most users' daily needs, while the refined driving experience and upmarket interior justify its position in the premium segment. However, if you’re looking for a more comfortable alternative whilst keeping the Mercedes badge, you may opt for the EQE.
Mercedes EQA 250+ Sport Executive | |
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Average Monthly Salary Sacrifice Including VAT | £625 |
Employee Income Tax Savings | -£250 |
Employee National Insurance Savings | -£13 |
Average BiK Tax Over Term | £62 |
You Pay/Net Cost | £424 |
If you agree to make use of your company’s salary sacrifice scheme, you will have to pay a small amount of Benefit-in-Kind tax, which is otherwise known as company car tax. At the moment, you will only pay 2%. This figure is due to rise annually by 1% between 2025 and 2028. However, after 2028, the BiK rate for electric vehicles will increase by 2% per year between 2028 and 2030, rising from 9% in 2029-30.
BMW i4
BMW's i4 targets driving enthusiasts who want to maintain the brand's sporting credentials while embracing electrification. The i4 is the electric version of the 4 Series Gran Coupe, with a sleek and stylish design combined with an impressive amount of power. Its popularity in salary sacrifice schemes is driven by national insurance and income tax savings and the cache of the BMW badge, particularly appealing to working professionals.
With a range of up to 365 miles on the eDrive40 model, it offers genuine long-distance capability while maintaining the dynamic driving characteristics BMW is famous for. You can go far without having to make sacrifices.
BMW i4 eDrive35 Sport | |
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Average Monthly Salary Sacrifice Including VAT | £875 |
Employee Income Tax Savings | -£350 |
Employee National Insurance Savings | -£18 |
Average BiK Tax Over Term | £64 |
You Pay/Net Cost | £571 |
Polestar 2
The Polestar 2 attracts design-conscious individuals who appreciate Scandinavian aesthetics and sustainable manufacturing practices. Its growing popularity in salary sacrifice schemes can be attributed to its unique positioning as a premium alternative to mainstream EVs, coupled with competitive pricing and strong residual values.
You can choose from four versions, ranging from the Standard Range Single Motor to the Long Range Dual Motor with Performance Pack, to find the model that suits your budget and needs, including range and added features. Offering between 275 and 336 miles of range depending on specification, it provides a compelling blend of performance, technology and is a great zero-emission alternative to a petrol, diesel or hybrid car.
Polestar 2 Long Range Single Motor | |
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Average Monthly Salary Sacrifice Including VAT | £624 |
Employee Income Tax Savings | -£249 |
Employee National Insurance Savings | -£12 |
Average BiK Tax Over Term | £61 |
You Pay/Net Cost | £423 |
Audi Q4 E-Tron
Audi's Q4 e-tron appeals to those seeking a practical family SUV that maintains the four rings' reputation for quality and sophistication. This electric SUV competes with alternatives like the Kia EV6 and Hyundai Ioniq 5. Its attraction as a salary sacrifice choice lies in its relatively accessible price point for a premium German brand due to national insurance and income tax savings.
The range varies from 208 to 316 miles depending on the variant, while the spacious interior and refined driving experience make it an excellent all-rounder. The Q4 e-tron is convenient, practical and suitable for all driving situations - whether you’re just driving around the city or taking it further afar.
Audi Q4 e-tron | |
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Average Monthly Salary Sacrifice Including VAT | £913 |
Employee Income Tax Savings | -£365 |
Employee National Insurance Savings | -£18 |
Average BiK Tax Over Term | £58 |
You Pay/Net Cost | £588 |
MG ZS EV
The MG ZS EV serves as an excellent gateway into electric motoring for budget-conscious families and first-time EV buyers. There are two battery options available: the 51kWh Standard Range and the 72kWh Long Range, which offer 198 and 273 miles respectively. The performance of the MG ZS doesn’t hugely differ from the MG4, but the infotainment system has been re-imagined with a smooth set-up and smarter technology.
While its range of 198 to 273 miles might not lead the class, it's more than adequate for most daily use cases, and the savings can be substantial compared to more premium alternatives. The MG ZS is a great car to consider if you’re looking to make the most of your company’s salary sacrifice scheme, it’s budget-friendly and paying directly from your salary is very tax-efficient!
MG SE EV | |
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Average Monthly Salary Sacrifice Including VAT | £453 |
Employee Income Tax Savings | -£181 |
Employee National Insurance Savings | -£9 |
Average BiK Tax Over Term | £38 |
You Pay/Net Cost | £300 |
If you’re interested in leasing any of the cars mentioned in this blog, all of them are available to view on our quote tool, where you will get a personalised price based on your salary and desired lease terms. Employees who choose to make use of their company’s electric car scheme can save between 20-50% on the cost of a new or used electric car through income tax and national insurance savings! It’s a great way to drive electric, as for many the first hurdle comes with the upfront cost of buying an electric car.
Last updated 02/01/24