What a car on your work lease scheme really takes out of your pay, after income tax, National Insurance, pension and benefit in kind.
£307.38 a month
out of take-home pay, 27% less than the £420.00 gross
Net cost a month, by tax year
£464.60 a month
out of take-home pay, 25% less than the £620.00 gross
Net cost a month, by tax year
The gross figure on the quote, split by who ends up paying it. Averaged over the lease.
Twelve months with each car, at 2026-27 rates.
Twelve months with each car, at 2026-27 rates.
| No car | Electric hatchback | Electric SUV | |
|---|---|---|---|
| Gross salary | £55,000 | £55,000 | £55,000 |
| Pension sacrifice | £2,750 | £2,750 | £2,750 |
| Car sacrifice | – | £5,040 | £7,440 |
| Pay after sacrifices | £52,250 | £47,210 | £44,810 |
| Taxable car benefit | – | £1,280 (4%) | £1,920 (4%) |
| Personal allowance | £12,570 | £12,570 | £12,570 |
| Income tax | £8,332 | £7,184 | £6,832 |
| of which BIK tax | – | £256 | £384 |
| National Insurance | £3,055 | £2,771 | £2,579 |
| Take-home pay | £40,863 | £37,255 | £35,399 |
| Take-home a month | £3,405.25 | £3,104.61 | £2,949.94 |
| Change a month | – | −£300.64 | −£455.31 |
| Employer pension | £2,750 | £2,750 | £2,750 |
| Tax year | Months | BIK rate | Taxable benefit | Gross sacrifice | Income tax saved | NI saved | BIK tax | Net cost | Net a month |
|---|---|---|---|---|---|---|---|---|---|
| 2026-27 | 6 | 4% | £640 | £2,520 | £900 | £142 | £148 | £1,626 | £270.98 |
| 2027-28* | 12 | 5% | £1,600 | £5,040 | £1,404 | £284 | £320 | £3,672 | £305.98 |
| 2028-29* | 12 | 7% | £2,240 | £5,040 | £1,404 | £284 | £448 | £3,800 | £316.64 |
| 2029-30* | 6 | 9% | £1,440 | £2,520 | £900 | £120 | £468 | £1,968 | £328.06 |
| Whole lease | 36 | £15,120 | £4,608 | £830 | £1,384 | £11,066 | £307.38 |
Over the lease your employer saves £2,268 in NI on the salary you give up and pays £888 in Class 1A NI on the car.
| Tax year | Months | BIK rate | Taxable benefit | Gross sacrifice | Income tax saved | NI saved | BIK tax | Net cost | Net a month |
|---|---|---|---|---|---|---|---|---|---|
| 2026-27 | 6 | 4% | £960 | £3,720 | £1,140 | £238 | £192 | £2,534 | £422.31 |
| 2027-28* | 12 | 5% | £2,400 | £7,440 | £1,884 | £476 | £480 | £5,560 | £463.31 |
| 2028-29* | 12 | 7% | £3,360 | £7,440 | £1,884 | £476 | £672 | £5,752 | £479.31 |
| 2029-30* | 6 | 9% | £2,160 | £3,720 | £1,140 | £216 | £516 | £2,880 | £480.06 |
| Whole lease | 36 | £22,320 | £6,048 | £1,406 | £1,860 | £16,726 | £464.60 |
Over the lease your employer saves £3,348 in NI on the salary you give up and pays £1,332 in Class 1A NI on the car.