Electric car BIK
| Tax year | BIK rate (zero-emission) |
|---|---|
| 2025/26 | 3% |
| 2026/27 | 4% |
| 2027/28 | 5% |
| 2028/29 | 7% |
| 2029/30 | 9% |
Salary sacrifice for cars is not affected by the planned 2029 limit on pension salary sacrifice. Your salary after sacrifice must stay above the minimum wage.
FAQ
How much does an EV salary sacrifice save a higher-rate taxpayer?
About a third of the gross cost after the BIK tax (e.g. £550 a month costs about £375).
Sources (checked 6 Nov 2026): HMRC company car benefit appropriate percentages.