10 great cars to have on salary sacrifice

Demand for salary sacrifice electric cars (EVs) is surging – even though the press might paint a gloomier picture over the lack of private appetite for EVs.

But it’s true. Demand for salary sacrifice grew by 47% between April 2023 and 2024.

So salary sacrifice really is proving popular as an employee benefit because you can drive a brand new electric car far cheaper than if you were to lease the same car privately yourself.

It’s all to do with tax breaks that reduce the cost to you. Each month, you ‘sacrifice’ part of your gross salary (so you pay less tax and National Insurance overall) and with that amount your employer leases a car on your behalf, which includes all the running costs (bar the electricity).

As the car is company-provided, there is a tax to pay on the benefit, but don’t worry. Electric cars are a win-win because, with zero emissions, they sit in the lowest 2% benefit in kind tax band. For example, a Kia Niro SUV will cost £12.50 a month for a 20% taxpayer or £25 for those in the 40% banding this current tax year (2024/25).

Electric cars have continued to attract very low levels of tax for several years which continues to make them a highly attractive employee benefit. If you are interested and want to read more on salary sacrifice, head over to our salary sacrifice scheme for EVs page.

Many carmakers have been committed to EVs for years, and because of the massive investment they are making, the wave of new EVs isn’t going to slow down. In fact, with new brands arriving on the market and a greater variety of styles, the choice is widening virtually month by month.

But which EV should you pick as your salary sacrifice car? We’ve picked out 10 of the latest models, from small hatchbacks to executive SUVs, for you to consider.

How we work out your salary sacrifice and your savings

Your net salary sacrifice is what the car will cost you after deduction of the rental, the benefit in kind tax and the tax and National Insurance savings you make on the reduced salary. We then calculate the savings available by comparing the net cost of salary sacrifice against leasing the car personally (Personal Contract Hire) on a like-for-like basis. There’s usually such a significant saving that it allows you to drive a far more desirable EV than you ever imagined.

Quotations are based on 3 years/10,000 miles pa on a 3+33 profile for a 40% taxpayer. All information correct as of 22 May 2024.

BMW i5 250kW eDrive40 Sport Edition 84kWh 4dr Auto

Range: 361 miles
Salary sacrifice net: £720
Equivalent PCH monthly cost: £1,226
Monthly cost saving: £506

The BMW 5-Series has been going since 1972 and the new eighth generation has a fully electric version for the first time.

The i5 doesn’t shout about its electric power but bristles with technology. For example, it has a similar ‘kidney’ grille as the other 5s, but either blanked off or made up of automatic cooling flaps, which can increase the range by up to 16 miles.

The eDrive40 i5 has a single, rear-mounted motor with 335bhp and will give you the longest range of the bunch – up to 361 miles. All i5s can use ultra rapid chargers at up to 205 kW to raise the charge level from 10 to 80 per cent in around 30 minutes.

BYD Seal 82.5kWh Excellence 390kW AWD Auto

Range: 354 miles
Salary sacrifice net: £584
Equivalent PCH monthly cost: £1,008
Monthly cost saving: £424

BYD – or ‘Build Your Dreams’ – is one of the new Chinese electric car brands, and the Seal is the third model introduced into the UK. A roomy, sleek saloon, it’s a rival to the Tesla Model 3 and just like that car has four doors and a boot lid rather than a hatchback. Also, similar to the Tesla, it also has a front boot or ‘frunk’ – handy for storing charging cables.

Inside there’s a panoramic glass roof, and a simply huge central touchpad which rotates through 180 degrees to offer portrait or landscape settings. Officially this top of the range 390kW four-wheel drive Excellence claims a very competitive 354-mile maximum range, and can take you from 0-62mph in a supercar-style 3.8 seconds.

Fiat 600e 51kWh La Prima 115kW 154hp Auto

Range: 254 miles
Salary sacrifice net: £507
Equivalent PCH monthly cost: £882
Monthly cost saving: £375

The new Fiat 600e takes the cute looks of the baby electric Fiat and successfully stretches them into a small SUV. It’s built in the same factory as the Jeep Avenger and shares many of the same parts. There are only vibrant colours to choose from, so don’t expect to drive this car in grey.

There’s a modern but stylish interior with quite a minimal feel. Four adults will be comfortable and, on the top-spec Prima model, the front seats are electrically adjustable.

There’s just one choice of battery size and electric motor power: 50.8kWh and 154bhp (in the sport driving mode). The 600e can charge at up to 100kW, which means 10-80% in about 27 minutes. Maximum claimed range is 254 miles.

Kia EV9 99.8kWh Air 201hp RWD Auto

Range: 349 miles
Salary sacrifice net: £747
Equivalent PCH monthly cost: £1,280
Monthly cost saving: £533

Nothing else looks like a Kia EV9, except perhaps a stormtrooper from Star Wars. At five metres long, it’s American-sized big too, with a third row of seats accommodating up to seven passengers. There’s also a six-seater version where the middle two armchairs swivel around to make a living room-style space.

And yet, despite appearances, it’s electric-only, not a gas-guzzling monster. For a car of its size, thanks to a hefty battery, a 349-mile potential range is better than other seven-seater rivals. There’s masses of storage inside for all those people as well. And an equally massive saving if you get one of these through salary sacrifice rather than leasing it yourself.

MG4 150kW SE EV Long Range 64kWh 5dr Auto

Range: 281 miles
Salary sacrifice net: £377
Equivalent PCH monthly cost: £651
Monthly cost saving: £274

Introduced in 2022, the MG4 is a Ford Focus-sized hatchback that’s been a hit with both private and company buyers due to its ultra-competitive price and great drive—it’s also picked up plenty of awards. It looks distinctive, and you’ll really be noticed if you plump for the bright orange or blue shades with the standard contrasting black roof panels.

For the size and price brackets, all versions of the MG4 stand out with potentially long ranges. The SE Long Range featured here can give up to 281 miles, and accepts a fast charge from 10 – 80% in as little as 35 minutes. The low retail prices make any version attractive on salary sacrifice.

MINICooper 54kWh SE Classic 160kW Auto

Range: 249 miles
Salary sacrifice net: £423
Equivalent PCH monthly cost: £729
Monthly cost saving: £306

The new fourth-gen MINI comes in all shapes, sizes and fuel types, but the smallest remains the classic MINI and our focus is on the one in EV trim. This time it has a simpler look with no black plastic on the wheel arches. For a minimal interior style, many functions have been migrated to a dinner-plate-sized touchscreen that echoes the 1959 car’s central speedometer. You can have a pretend engine sound like the original as well.

All versions of this three-door are called Cooper and it was designed as a pure electric car from the outset, so adds a bigger battery under the floor within a slightly shorter but taller body. The old MINI e had a best max range of 144 miles but this new SE claims 249. The salary sacrifice saving allows for a little fun with the very big options list.

Nissan Ariya 160kW Engage 63kWh 5dr Auto

Range: 319 miles
Salary sacrifice net: £560
Equivalent PCH monthly cost: £978
Monthly cost saving: £418

Having kickstarted the EV revolution with the groundbreaking LEAF in 2011, Nissan has added the good-looking Ariya SUV as only its second all-electric car. Its rivals include the Tesla Model Y and the Kia EV6. Nissan describes the Ariya as a ‘coupé crossover’ but head and leg room are both very good.

Nissan has aimed for a real premium feel interior, adding suede and wood-effect materials to the dashboard. There’s even a little tray which pops out of the passenger side on which to perch a laptop in case you want to work while it’s charging.

Choose between the 63kWh battery here for a claimed maximum charge of 250 miles or the 87 kWh Ariya offers 319 miles.

Volkswagen ID. Buzz Life Pro 77kWh 204PS Auto

Range: 260 miles
Salary sacrifice net: £532
Equivalent PCH monthly cost: £887
Monthly cost saving: £355

Boy, have people been excited about this new all-electric take on the classic Volkswagen van, and here it is, now readily available to order and next expected in a seven-seater and performance GTX versions. There’s a single motor choice of 201bhp and up to 260 miles.

If you order a Buzz under salary sacrifice, your kids will probably get very excited, and there’ll be plenty of space for them. It’s tall, has a huge boot, very useful sliding rear doors and with a boot board the rear seats can fold flat to take a mattress for two.

There are two grades: Life and Style, but with both you’ll have to bump up the price to have that classic two-tone campervan look .

Volvo EX30 200kW SM Extended Range Plus 69kWh 5dr Auto

Range: 295 miles
Salary sacrifice net: £473
Equivalent PCH monthly cost: £816
Monthly cost saving: £343

The new electric-only EX30 is Volvo’s smallest SUV, so it won’t be a handful at the supermarket. It can also park itself as standard if you’re brave enough. The comprehensive safety kit includes a warning if you open a door when a cyclist is coming.

The interior oozes Scandinavian style and uses lots of recycled plastic and denim. The dashboard has a tablet touchscreen that takes care of most business, and the sound system has a soundbar running across the dash rather than speakers in the doors.

Compared to its rivals, the EX30 is not as expensive as you might think, which translates to pleasantly low salary sacrifice payments. There’s a choice of two batteries and two or four-wheel drive. The EX30 single-motor Extended Range Plus featured, claims an impressive 295-mile range.