For company car drivers, few decisions matter more than timing. In 2026, electric vehicles continue to benefit from some of the most favourable tax treatment seen in decades, but the window to maximise those advantages is narrowing.
Salary sacrifice schemes have moved from niche perk to mainstream strategy. Yet many drivers still leave money on the table by misunderstanding how Benefit in Kind works, or by acting too late.
This guide explains how EV salary sacrifice really works in 2026, why April matters, and what practical steps company car drivers should take now.
If you are still comparing EV ownership options, this overview helps set the foundation: the essential EV apps guide .
What Is Salary Sacrifice for EVs?
Salary sacrifice allows an employee to give up part of their gross salary in exchange for a benefit, such as a company-provided electric vehicle.
Because the deduction happens before tax and National Insurance, the effective cost of the vehicle is reduced. When combined with low EV Benefit in Kind rates, the savings can be substantial.
For many company car drivers, this makes a new EV more affordable than a used petrol or diesel alternative.
Why Benefit in Kind Still Favour EVs in 2026
Benefit in Kind tax is calculated based on the vehicle’s list price and its emissions rating.
Zero-emission vehicles continue to attract significantly lower BiK rates than combustion cars. While rates are gradually increasing over time, EVs remain far ahead in tax efficiency.
HMRC publishes official guidance on company car tax bands: Company car tax guidance (GOV.UK) .
For drivers, this translates into predictable monthly costs and far lower personal tax exposure.
Why April Is a Critical Deadline
The UK tax year resets in April, and with it often come adjustments to allowances and rates.
Entering a salary sacrifice agreement before April can lock in favourable terms under the current structure. Delaying decisions risks higher costs or reduced flexibility later in the year.
This timing effect is one of the most common mistakes company car drivers make, especially those waiting for “the next model year”.
Hidden Savings Beyond Tax
Salary sacrifice schemes often bundle costs that drivers underestimate.
- Insurance included in a fixed monthly amount
- Servicing and maintenance covered
- Road tax eliminated for EVs
- Predictable costs with no resale risk
When combined, these factors can outweigh small differences in list price.
Charging Costs Still Matter
While tax efficiency is powerful, day-to-day charging costs remain part of the equation.
Company car drivers who rely on public charging should understand pricing structures and payment methods to avoid unexpected costs.
For practical guidance on managing charging confidently, see: EV charging near me .
Common Mistakes to Avoid
Even experienced professionals can misjudge EV salary sacrifice.
- Focusing only on headline monthly cost
- Ignoring contract length and exit terms
- Assuming all schemes are structured the same
- Underestimating charging behaviour and access
As with most financial decisions, clarity beats speed, but timing still matters.
The Bottom Line for Company Car Drivers
In 2026, EV salary sacrifice remains one of the most compelling financial incentives available to employees.
For company car drivers who act before April, the combination of low BiK rates, tax efficiency, and predictable running costs can deliver meaningful savings without lifestyle compromise.
The opportunity is real, but it is not indefinite.
FAQs
Is salary sacrifice only for large companies?
No. Many SMEs now offer salary sacrifice schemes through third-party providers.
Do EVs always make sense under salary sacrifice?
They suit many drivers, but individual circumstances and mileage patterns still matter.
Can I leave a salary sacrifice scheme early?
Exit terms vary. Always review contract conditions carefully.
Does charging cost get reimbursed?
This depends on employer policy. Some reimburse business mileage charging.
Will BiK rates increase in future?
Rates are scheduled to rise gradually, which is why timing remains important.
