TL;DR: Electric Vehicle salary sacrifice remains the most tax-efficient way to drive a new EV in the UK in 2025. By paying from your pre-tax salary, drivers can save between 20% and 50% compared to personal leasing. With Benefit-in-Kind rates locked at just 3%, even premium electric cars now cost less than many petrol hatchbacks.
What Is Electric Car Salary Sacrifice?
An electric car salary sacrifice scheme is an agreement between you and your employer. You agree to give up a portion of your gross salary in exchange for a brand-new electric vehicle.
Because payments are taken before Income Tax and National Insurance are applied, your taxable income is reduced. In simple terms, you pay for the car using money that would otherwise go to the taxman.
The Hidden Benefit: All-Inclusive Driving
Unlike a PCP or personal lease, salary sacrifice typically includes:
- The vehicle lease
- Fully comprehensive insurance
- Servicing and maintenance
- Tyres and breakdown cover
- EV charging through ONEEV’s Charge Scheme
This all-in model removes cost surprises and protects drivers from rising insurance and maintenance costs.
How Much Can You Actually Save in 2025?
Your savings depend primarily on your income tax band. The higher your tax rate, the greater the saving.
| Tax Band | Annual Income | Estimated Saving |
|---|---|---|
| Basic Rate (20%) | £12,571 – £50,270 | 25% – 30% |
| Higher Rate (40%) | £50,271 – £125,140 | 35% – 42% |
| Additional Rate (45%) | Over £125,140 | Up to 50% |
Real-World Example
A :contentReference[oaicite:0]{index=0} leased privately may cost around £650 per month.
Through ONEEV salary sacrifice for a 40% taxpayer:
- Lease via salary sacrifice: ~£395/month
- Benefit-in-Kind tax: ~£45/month
- Net monthly cost: £440
That is a saving of over £2,500 per year for the same vehicle.
The 2025 BiK Update: Why Now Is Still the Best Time
Despite common misconceptions, the UK Government has confirmed that EV salary sacrifice remains protected.
Benefit-in-Kind rates for electric cars rise gradually but remain dramatically lower than petrol or diesel vehicles.
- 2024/25: 2%
- 2025/26: 3%
- 2026/27: 4%
- 2027/28: 5%
- 2028/29: 7%
- 2029/30: 9%
By comparison, petrol cars can attract BiK rates of up to 37%. The tax advantage remains substantial for the rest of the decade.
ONEEV vs PCP vs Personal Leasing
Many drivers ask why they should not simply take a dealership PCP deal.
- No deposit: PCP deals often require £3,000–£7,000 upfront
- No personal credit exposure: Salary sacrifice does not impact mortgage affordability in the same way
- Inflation protection: Insurance and maintenance costs are fixed for the term
With PCP, rising insurance premiums and servicing costs sit entirely with the driver.
Beyond the Car: Salary Sacrificing EV Charging
This is where ONEEV moves beyond traditional schemes and competitors such as :contentReference[oaicite:1]{index=1}.
With ONEEV’s Charge Scheme, public charging costs can also be taken from your pre-tax salary.
If you spend £100 per month on charging:
- Without salary sacrifice: £100 after tax
- With ONEEV (40% taxpayer): £60 impact on take-home pay
You effectively save 40% on every kilowatt-hour across more than 55,000 UK charge points.
Frequently Asked Questions
Does salary sacrifice affect my pension?
Because gross salary is reduced, pension contributions based on salary may be affected. Most employers offer pension-lead adjustments to ensure retirement savings are protected.
What happens if I leave my job?
ONEEV includes Early Termination Protection. In cases such as redundancy, the cost of returning the vehicle is covered, avoiding unexpected charges.
Is there a mileage limit?
Yes. You select an annual mileage allowance, typically 8,000–15,000 miles. This can usually be adjusted during the agreement.
