Employee inputs
Tax & NI Assumptions
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| Tax Personal Allowance | 12,570.00 |
| End of basic-rate band (income) | 50,270.00 |
| Additional-rate threshold (income) | 125,140.00 |
| PA taper starts (income) | 100,000.00 |
| Basic Rate Tax | 20.0% |
| Higher Rate Tax | 40.0% |
| Additional Rate Tax | 45.0% |
| Employee NI Primary Threshold | 12,570.00 |
| Employee NI Upper Earnings Limit | 50,270.00 |
| Employee NI main rate | 8.0% |
| Employee NI additional rate | 2.0% |
| Employer NI Rate | 15.0% |
| Employer NI Secondary Threshold (annual) | 5,000.00 |
| EV BiK rate | 3.0% |
| Petrol BiK comparison rate | 30.0% |
| The size of the income slice that is taxed at the Basic Rate (20%) after you have your Personal Allowance. | 37,700 |
| Student Loan threshold (annual, Plan 2) | 27,295.00 |
| Student Loan repayment rate (Plan 2) | 9.00% |
Notes:
1 - Income Tax savings are calculated as the exact difference before and after sacrifice, capturing blended tax bands and the 60% effective rate in the £100k–£125,140 taper.
2 - Employee NI savings are calculated as the exact before–after difference, using piecewise NI rates (8% then 2%) so threshold crossings are handled correctly.
3 - Employer Class 1 NI savings use exact before–after comparison and respect the Secondary Threshold.
4 - BiK tax rate uses the employee’s post-sacrifice marginal Income Tax rate as a standard, recognised proxy, and factors in any top slicing that occurs where an employee straddles tax bands.
5 - Effective saving rates show the percentage saved for every £1 sacrificed, automatically capturing all blended tax and NI effects.
6 - Student Loan savings are calculated as the difference in repayments after adding an EV on salary sacrifice. It uses the Plan 2 repayment income threshold and 9% rate by default.
7 - Employer Class 1 NI passback (if chosen during scheme set up) is not factored into these results. When it is applied by a company, NI passback reduces the gross employee salary sacrifice each month.
Employee Savings
| Monthly (£) | Annual (£) | |
|---|---|---|
| Income Tax Saving | – | – |
| Employee NI Saving | – | – |
| BiK Tax Saving vs Petrol1 | – | – |
| Student Loan Saving | – | – |
| Employee Total Saving | – | – |
Notes
1 The saving compared to a petrol car as a standard company benefit (not salary sacrifice).
What this means for the employee's payslip
| Without EV | With EV | Change | |
|---|---|---|---|
| Gross pay (£) | – | – | – |
| Salary sacrifice (£) | – | – | – |
| Income Tax (£) | – | – | – |
| Employee NI (£) | – | – | – |
| BiK Tax (£) | – | – | – |
| Student Loan (£) | – | – | – |
| Net pay (£) | – | – | – |
Employer Savings
| Monthly (£) | Annual (£) | |
|---|---|---|
| Employer Class 1 NI Saving on Salary1 | – | – |
| Employer Class 1A NI on EV BiK (cost)2 | – | – |
| Employer Class 1A NI Saving vs Petrol3 | – | – |
| Employer Total Saving vs Petrol4 | – | – |
| Employer Total Saving vs Cash5 | – | – |
Notes
1 National Insurance the employer saves because the employee’s gross salary is reduced.
2 National Insurance the employer pays each year on the EV’s taxable benefit.
3 Reduction in Employer Class 1A National Insurance compared to a petrol car provided as a standard company benefit (not salary sacrifice).
4 How much the employer saves compared to providing a petrol car as a standard company benefit (not salary sacrifice).
5 How much the employer saves vs giving the employee extra salary instead of a car.
Effective Saving Rates
| Effective Income Tax Saving Rate | – |
| Effective NI Saving Rate | – |
| Effective Employer NI Saving Rate | – |
Effective saving rates show the percentage saved for every £1 sacrificed, automatically capturing all blended tax and NI effects.