How you can get behind the wheel with salary sacrifice

Are you one of the thousands of drivers who would love their next car to be electric but feel that the price is prohibitive? The good news is that Tusker’s salary sacrifice schemes provide a far more affordable way to get behind the wheel of a brand-new electric or hybrid car.

At Tusker, our aim is to get everyone in the UK driving a newer and sustainable car at the most affordable price.  Tusker’s salary sacrifice scheme has more than 75,000 cars on the road, with more than 85% of those pure EV. In fact, in our most recent 2025 driver report, only 3% of drivers told us that they plan to switch back to a petrol or diesel car, and the almost all EV drivers (96%) say they’re either satisfied or very satisfied with their car compared to their previous petrol or diesel car.

Why are so many people going electric through Tusker?

Eco-conscious cars can offer lower-cost driving. EV and hybrid drivers typically enjoy cheaper running costs thanks to charging being more cost-effective than fuelling a petrol or diesel car. While the cost of electric varies greatly between where and when you charge, saving money by charging at off-peak times is not a luxury any combustion car enjoys. EVs also enjoy the freedom of many cities that have recently introduced emission charges for petrol and diesel vehicles. Living or commuting within a clean air zone with a combustion car is quickly becoming unaffordable for many.

All these savings add up to significant reductions in comparison to driving a petrol or diesel equivalent. But this is just the tip of an enormous cost-saving iceberg. Because it’s not only day-to-day driving costs that reduce with EVs, but the vehicles themselves. And that’s all down to the tax treatment of electric and hybrid vehicles applied by HMRC for cars taken on salary sacrifice.

Historically, electric and hybrid cars were much more expensive than their fossil-fuelled cousins largely due to the costs associated with battery production. However, in recent years, although prices have come down, up-front price remained a stumbling block for many drivers. HMRC then decided to support the transition to a net zero by incentivising drivers to take up electric and hybrid cars with tax incentives.

How salary sacrifice makes ULEVs affordable

Electric cars enjoy considerably lower Benefit in Kind (BIK) rates than their combustion counterparts. For electric cars, Benefit in Kind is only 3% in 2025/26, rising slowly to reach 9% in 2030. With petrol cars starting at more than 25% Benefit in Kind for the tax year 2025/26, there are considerable tax savings when choosing an ultra-low emission or electric car.

It’s attractive for employers too, as tax and NI savings can be made on ULEVs, so there are savings available for employers.

For ultra-low emission hybrids, the amount of tax and national insurance you’ll save will depend on the emissions of the car you choose. The lower the emissions and the longer the car’s electric-only range, the less tax you’ll have to pay. This means ULEVs attract much lower BIK rates than their petrol and diesel counterparts and EVs are the most cost-effective from a tax perspective.

It’s this potential for tax savings, plus the low-cost day-to-day driving offered by these cars, that has galvanised drivers to embrace electromobility. And salary sacrifice brings other benefits too.

No deposit and no hidden costs

Buy a brand-new electric or hybrid car outright and you’ll need tens of thousands saved and ready to go or a decent deposit and a loan. Alternatively, you could take out another form of finance – like PCP or PCH – which only cover the cost of the car leaving you with additional bills for items like insurance.

With salary sacrifice everything’s different:

1. No need for a deposit – your first deduction is taken directly from your salary and you’ll know exactly how much this will be for every month of your agreement. We don’t ask for credit checks either.
2. Regular monthly amounts – the same amount is taken monthly, directly from your pay before it hits your bank account, so you won’t have to worry about an un-budgeted expense.
3. The monthly amount includes everything you need – from insurance, road tax and breakdown cover to routine servicing, MOTs, maintenance and more, your monthly deductions provide a comprehensive motoring package.
4. Major tax and national insurance contributions – during the tax year, you’ll make a major saving on tax and NI contributions on the monthly amount for an electric car.
5. A shiny new car every few years – at the end of the agreement, you can either hand the car back, buy it, or take out an entirely new car – your old car is picked up and you get a brand new car to replace it with a fresh battery and all the latest tech, infotainment and safety features you could want.
6. You’re protected from lifestyle changes – if you leave your job, get made redundant or go on long-term leave, there are protections in place to cover most circumstances (we advise you check your scheme policy for full details on what is covered).

That sounds good, but what does all this mean in pounds and pence? On average, Tusker drivers could save an average of £286 per month in income tax, Benefit in Kind and National Insurance.

All these ULEV savings add up to a very attractive and cost-effective package that removes the up-front vehicle cost hurdle for increasing numbers of drivers. If you’re ready to join the ultra-low emission driving revolution, compare cars and create your no obligation quote today.