Car Salary Sacrifice Calculator
Car salary sacrifice gives up salary in exchange for a company car. You save Income Tax and NI on the sacrifice but pay BIK on the company car benefit (P11D × BIK%).
UK car salary sacrifice calculator for petrol, diesel and hybrid vehicles. Estimates net take-home impact and Benefit in Kind tax for the 2026/27 tax year.
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What this calculator does
Estimates take-home pay impact, taxable car benefit (P11D × BIK%), Income Tax/NI changes and employer Class 1A NI on the benefit.
Who it is for
UK employees considering a non-EV company car under salary sacrifice; fleet and HR managers.
How to use it
Enter gross salary, monthly sacrifice, P11D value, BIK %, region, weekly hours and age band. Use the manual taxable benefit override if your scheme quotes one.
How the calculation works
Taxable car benefit = P11D × BIK% (or manual override). Sacrifice reduces salary; Income Tax recalculated on (salary after + benefit). Employer Class 1A NI = benefit × 15%.
Worked example
£45,000 salary, £450/mo (£5,400/yr) sacrifice, £32,000 P11D at 27% BIK: taxable benefit £8,640; income tax up by £1,728; employer Class 1A NI £1,296.
Assumptions and limitations
- 2026/27 tax year only
- BIK% from GOV.UK appropriate percentage tables — verify against your scheme docs
- EW/NI bands only
- Estimates only — not financial advice
Frequently asked questions
Is car salary sacrifice worth it?
For low-emission cars, often yes. For high-BIK petrol/diesel cars the BIK tax may wipe out the NI saving.
What is a P11D value?
The manufacturer's list price including VAT and most options, less first-year registration fee and road tax.
Do employees pay NI on the car benefit?
No — only employers pay Class 1A NI on the BIK value (15% from April 2026).
Can I leave the scheme early?
Most schemes have early-termination fees. Check the T&Cs.
Minimum wage rules?
Sacrifice must not push cash pay below the National Minimum Wage.
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Sources and references
GOV.UK Income Tax rates 2026/27; GOV.UK Company car benefit appropriate percentage tables; GOV.UK Class 1A NI rates; GOV.UK Salary sacrifice for employers.
Last updated
Last reviewed: 2026-05-21.