Electric Cars / Salary Sacrifice

Understanding salary sacrifice as the most affordable way to drive electric

The most affordable way to drive an electric car is through salary sacrifice

Driving an electric vehicle (EV) can be even more affordable than petrol or diesel cars thanks to salary sacrifice. Drivers in 2022 saved an average of £291 per month by opting for a brand-new battery electric vehicle on a salary sacrifice scheme. Incredibly, 90% of British motorists are not aware of the financial incentives available to them to go electric.

The barriers around EVs are being reduced. Range anxiety has moved to range awareness and the charging point infrastructure is improving every day. Three out of five motorists claim they would go electric if they were cheaper. One of the most cost-effective ways into the world of EV motoring is through salary sacrifice schemes.

Benefits of driving electric through salary sacrifice

The majority of people, including thousands of nurses, doctors, council workers and bank workers, are largely unaware they could save thousands of pounds in tax and National Insurance (NI) while driving a brand-new electric car without having to fork out for a deposit, maintenance or even insurance.

Most people have heard about the government’s Cycle to Work scheme, where employees are able to buy a new bike from their salary before tax or NI had been deducted (lowering the bill of both as a result). Fewer than one in ten were aware that they could do the same to purchase a new electric vehicle – helping to lower emissions from transport and save money.

Salary sacrifice has always been one of the most affordable ways to drive ultra-low emission vehicles (ULEV) and electric vehicles. When coupled together with access to an OLEV grant, electric charging savings and the introduction of low Benefit in-Kind taxation, salary sacrifice is now the cheapest way to drive electric.

Through salary sacrifice, EVs offer savings thanks to the way the scheme works and the fact that EVs only attract 2% Benefit in Kind. For drivers, this represents an average saving of £291 per month in 2022, when compared with retail deals.

Insurance, breakdown cover and maintenance are included in some salary sacrifice schemes, as well as no deposit being required, meaning that the savings could be even greater than this throughout the lease of the vehicle.

The MG4 Example:

For example, one of the cheapest city cars available through Tusker, the MG4, is currently as little as £258 a month, enjoying tax efficiencies of £159 per month which aren’t available with leasing deals. For drivers wanting a larger crossover SUV, Tusker offers the Kia e-Niro which is currently available for £341 per month, with tax efficiencies of £200*



With three out of five motorists claiming they would drive an electric vehicle as their next mode of transport, but have felt that costs have been prohibitive, it is clear that offering a salary sacrifice electric car scheme is key for the mass adoption of electric vehicles.

While 60 per cent of people who drive claimed not to know what salary sacrifice is, it’s clear that this is the most affordable solution for many people when making the switch.

Paul Gilshan, CEO of the leading UK car salary sacrifice provider, Tusker, said:

“For too long, a lot of people have felt priced out of the EV revolution. This was evident from those we spoke to as part of our survey, with the majority thinking battery electric vehicles were only for those that do little mileage or those on high incomes. Salary sacrifice is nothing new but appears to be still an unknown to a lot of working people; it’s the solution to drive a new electric vehicle for both 20% and 40% taxpayers, but it seems the myth is that people think they can’t drive an EV unless they are on high salaries. Put simply, salary sacrifice is key to making battery electric vehicles affordable for the average British motorist and key to the UK significantly reducing emissions of transport.”

Since 2000, Tusker has delivered 45,000 new cars to employees through its salary sacrifice scheme. 85% of orders through this scheme have been made by 20% taxpayers and its most popular orders for 2019 had battery electric powertrains. Check out some of our most popular cars today:

Popular Cars

*Our pricing varies according to personal circumstances, scheme parameters, mileage and length of agreement. These prices are based on a 40% taxpayer driving 5000 miles per annum for 36 months.

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