The Difference Between EV Salary Sacrifice and Charging Salary Sacrifice

Source: Shutterstock

Key Insights

• EV salary sacrifice covers the vehicle lease, insurance, maintenance, and road tax, whilst charging salary sacrifice specifically covers all EV charging costs at home, work, and on public networks - two distinct schemes that address different aspects of electric car ownership.
• Combining both schemes delivers maximum savings of 20-50% on vehicle costs plus an additional 20-50% on charging expenses, potentially saving employees £3,000-£5,000 annually compared to traditional car ownership and fuel costs.
• The Charge Scheme represents the UK's first dedicated charging salary sacrifice solution, designed to bolt directly onto any existing EV salary sacrifice scheme, creating a comprehensive cost-reduction package for electric vehicle drivers.
• With BiK tax for electric vehicles at just 4% in 2026/27 (rising to 5% in 2027/28), salary sacrificing both your EV and charging costs provides unprecedented tax efficiency compared to the maximum 37% BiK rate for petrol and diesel company cars.

As electric vehicle adoption accelerates across the UK, more employees are discovering innovative ways to reduce the costs of going electric. Two distinct salary sacrifice solutions have emerged: EV salary sacrifice for the vehicle itself, and charging salary sacrifice for powering it. Understanding the difference between these schemes - and how they work together - is essential for maximising your savings.

What Is EV Salary Sacrifice?

EV salary sacrifice is a workplace benefit scheme where employees agree to reduce their gross salary in exchange for an electric company car. The vehicle lease cost is deducted from your salary before tax and National Insurance calculations, resulting in substantial savings of 20-50% compared to leasing the same vehicle independently.

What Does EV Salary Sacrifice Cover?

An electric vehicle salary sacrifice scheme typically includes:

Vehicle Costs

• Monthly lease payments for a brand-new or used electric car

• Full manufacturer warranty throughout the lease period

• Option to choose from hundreds of EV models

Insurance and Protection

• Comprehensive motor insurance

• Breakdown cover and roadside assistance

• Vehicle excise duty (road tax) included

Maintenance Package

• Regular servicing and MOTs

• Tyre replacement when required

• Wear and tear maintenance

Additional Benefits

• Fixed monthly cost with no surprises

• Option to return or upgrade the vehicle at lease end

• Protection for employers through schemes like Complete Employer Protection

How Much Can You Save with EV Salary Sacrifice?

The savings from EV salary sacrifice depend on your tax bracket:

• Basic rate taxpayers (20%): Save approximately 32% on lease costs

• Higher rate taxpayers (40%): Save approximately 42% on lease costs

• Additional rate taxpayers (45%): Save approximately 47% on lease costs

For example, a vehicle with a £600 monthly lease cost could be reduced to approximately £348 for a higher rate taxpayer - a saving of £252 per month or £3,024 annually over a three-year lease.

Current BiK Tax Rates for Electric Vehicles

The exceptionally low Benefit-in-Kind tax on electric vehicles makes salary sacrifice particularly attractive:

• 2025/26: 3% BiK rate

• 2026/27: 4% BiK rate

• 2027/28: 5% BiK rate

Compare this to petrol and diesel vehicles facing BiK rates up to 37%, and the tax advantage becomes clear.

What Is Charging Salary Sacrifice?

Charging salary sacrifice is a separate workplace benefit scheme where employees can reduce their gross salary to cover the cost of charging their electric vehicle. The Charge Scheme represents the UK's first and only dedicated solution for this purpose.

What Does Charging Salary Sacrifice Cover?

The Charge Scheme covers all types of electric vehicle charging:

Home Charging

• Any home charger type or brand

• All energy tariffs including specialist EV rates

• Installation costs can be included in some arrangements

Workplace Charging

• Office or depot charging facilities

• Compatible with any workplace charging provider

• Covers both free and paid workplace charging

Public Charging

• Access to over 76,000 UK charging points

• Major networks including BP Pulse, Shell Recharge, IONITY

• Tesla Superchargers across Europe

• Single app and card solution via The Charge Scheme

How Much Can You Save with Charging Salary Sacrifice?

Charging salary sacrifice savings also depends on your tax bracket and charging patterns:

• High-mileage drivers using public charging frequently: £800-£1,000 annually

• Mixed charging users (home and public): £500-£750 annually

• Primarily home charging: £300-£500 annually

The tax savings structure mirrors EV salary sacrifice, with higher-rate taxpayers achieving approximately 42% savings on all charging costs.

What Are The Key Differences Between EV and Charging Salary Sacrifice?

Understanding these differences helps you maximise the benefits of both schemes:

1. What They Cover

EV Salary Sacrifice Covers:

• The vehicle itself (lease cost)

• Insurance and breakdown cover

• Maintenance, servicing, and tyres

• Road tax (VED)

• Depreciation risk

Charging Salary Sacrifice Covers:

• Home electricity for EV charging

• Workplace charging costs

• Public charging network access

• Charging infrastructure costs

2. Cost Structure

EV Salary Sacrifice:

• Fixed monthly deduction from gross salary

• Typically £300-£800 per month depending on vehicle

• Includes all vehicle-related costs except charging

• 2-4 year commitment period

Charging Salary Sacrifice:

• Variable monthly deduction based on actual usage

• Typically £50-£150 per month depending on mileage

• Only covers charging costs

• Flexible - can adjust usage month to month

3. Setup and Administration

EV Salary Sacrifice:

• Requires the employer to set up a scheme with the provider

• A credit check is typically required

• Vehicle selection and ordering process

• Delivery time of 2-12 weeks, depending on vehicle

Charging Salary Sacrifice:

• Bolts onto existing company car schemes

• App and card setup in minutes

• No credit check required

• Immediate start once the employer is enrolled

4. Flexibility

EV Salary Sacrifice:

• Fixed commitment for lease duration

• Early termination may incur fees (unless protected)

• Vehicle can be changed at end of lease

• Mileage limits apply

Charging Salary Sacrifice:

• Monthly usage based on actual charging

• 10-second monthly mileage submission

• No fixed commitment beyond employment

• Unlimited charging within the salary sacrifice structure

5. Employer Requirements

EV Salary Sacrifice:

• Must set up a scheme with a leasing provider

• Payroll integration required

• Credit risk assessment needed

• Ongoing vehicle administration

Charging Salary Sacrifice:

• Works with ANY existing EV scheme

• Minimal payroll changes required

• Zero additional cost to employer

• Automated monthly reporting

How Do EV Salary Sacrifice and Charging Salary Sacrifice Work Together?

The true power emerges when combining both schemes, creating a comprehensive solution for electric vehicle ownership:

The Complete Cost-Saving Package

Monthly Vehicle Costs via EV Salary Sacrifice:

• Original lease cost: £600

• After tax savings (40% taxpayer): £348

• Monthly saving: £252

Monthly Charging Costs via Charging Salary Sacrifice:

• Original charging cost: £120

• After tax savings (40% taxpayer): £70

• Monthly saving: £50

Total Combined Monthly Saving: £302 Total Combined Annual Saving: £3,624

Real-World Example: The Complete Journey

Sarah, a higher rate taxpayer, wants to drive a Tesla Model 3:

Without Any Salary Sacrifice:

• Personal lease: £650/month

• Public charging costs: £140/month

• Total monthly cost: £790

• Annual cost: £9,480

With EV Salary Sacrifice Only:

• Salary sacrifice lease: £377/month (42% saving)

• Public charging costs: £140/month

• Total monthly cost: £517

• Annual cost: £6,204

• Annual saving: £3,276

With Both EV + Charging Salary Sacrifice:

• Salary sacrifice lease: £377/month

• Salary sacrifice charging: £81/month (42% saving)

• Total monthly cost: £458

• Annual cost: £5,496

• Annual saving: £3,984

By combining both schemes, Sarah saves an additional £708 annually compared to EV salary sacrifice alone.

Who Should Use Which Scheme?

Choose EV Salary Sacrifice If You:

• Need a new electric vehicle

• Want fixed monthly costs with everything included

• Prefer not owning and maintaining a vehicle

• Qualify through your employer's scheme

• Can commit to a 2-4 year lease period

• Want the tax benefits of company car ownership

Choose Charging Salary Sacrifice If You:

• Already own or lease an electric vehicle

• Want to reduce ongoing charging costs

• Have no access to affordable home charging

• Rely heavily on public charging networks

• Want flexibility without long-term commitments

• Are in an existing company EV scheme

Choose Both Schemes If You:

• Want maximum possible savings on EV costs

• Your employer offers both schemes

• You're committed to long-term electric driving

• You have significant annual mileage

• You want comprehensive cost coverage

• Tax efficiency is a priority

Why The Charge Scheme Works With Any EV Salary Sacrifice Provider

One of the most significant advantages of The Charge Scheme is its universal compatibility. Unlike EV salary sacrifice schemes that require you to work with specific leasing providers, The Charge Scheme works alongside:

• Any existing EV salary sacrifice scheme

• Any electric vehicle make or model

• Any leasing or scheme provider

• Personal EV leases or ownership

• Company-owned electric vehicles

This means employees can add charging savings regardless of how they acquired their electric vehicle, making it the missing piece that completes the EV affordability puzzle.

Benefits of Combining Both Schemes

For Employees

Maximum Tax Efficiency

• Double tax advantage on both the vehicle and the charging

• Reduce taxable income through both deductions

• Save 20-50% on total EV costs

Simplified Finances

• Single monthly salary deduction covers everything

• No upfront costs or deposits required

• Predictable budgeting for electric driving

Complete Coverage

• Vehicle, insurance, and maintenance all included

• All charging costs covered (home, work, public)

• No unexpected EV-related expenses

Environmental Impact

• Reduce carbon emissions through EV adoption

• Support UK Net Zero targets

• Demonstrate personal environmental commitment

For Employers

Enhanced Benefits Package

• Competitive employee retention tool

• Attract environmentally conscious talent

• Demonstrate corporate sustainability commitment

Zero Net Cost

• Both schemes are cost-neutral to employers

• National Insurance savings offset administration

• Improved benefits without increased costs

Simplified Administration

• Automated payroll integration

• Single point of contact for support

• Minimal ongoing management required

ESG and Net Zero Support

• Accelerate company fleet electrification

• Demonstrate climate action commitment

• Support employee transition to EVs

Real-World Success Stories

Shaw Education Trust: Complete EV Solution

Shaw Education Trust implemented both EV salary sacrifice and The Charge Scheme for their educators. Stephen Watson, Chief People Officer, explains:

"The combination has been transformative. Educators can access electric vehicles affordably through salary sacrifice, and The Charge Scheme has removed the charging cost barrier that was preventing some staff from making the switch. We've seen remarkable enthusiasm from our team."

Europa Worldwide Group: Fleet Electrification

Europa Worldwide, with team members constantly on the move, needed a complete solution:

"For our mobile workforce, combining vehicle and charging salary sacrifice has made electric vehicle adoption practical and affordable. Staff save thousands annually while we progress toward our Net Zero commitments," reports Amy Gordon, HR Coordinator.

Red Badger: Employee Without Home Charging

John Godfrey's experience demonstrates why charging salary sacrifice matters:

"I got my MG4 through EV salary sacrifice which saved me thousands on the vehicle. But without a home charger, I was spending £140+ monthly on public charging. The Charge Scheme cut that cost in half, saving me another £50+ per month. Together, these schemes make electric driving genuinely affordable."

How To Get Started With Both Schemes

If Your Employer Offers EV Salary Sacrifice

1. Check current scheme details with your HR department

2. Ask about The Charge Scheme as a charging add-on

3. Calculate your combined savings using both schemes

4. Select your electric vehicle through the EV scheme

5. Set up The Charge Scheme app when your car arrives

If Your Employer Doesn't Offer Either Scheme

1. Share this article with your HR or benefits team

2. Highlight the zero-cost benefit for employers

3. Provide employer information about both schemes

4. Connect HR with providers for implementation support

5. Join when schemes launch to start saving immediately

If You Already Have An EV Through Salary Sacrifice

You can still add charging salary sacrifice:

1. Check with HR if The Charge Scheme is available

2. If not available, request they add it to existing benefits

3. Setup takes minutes once employer enrolled

4. Start saving immediately on all charging costs

FAQ’s

• Can I use The Charge Scheme without an EV salary sacrifice scheme?

  Unfortunately no. Salary sacrifice charging is only applicable for drivers of a company-owned EV. So if you drive a car through work, whether through a company-owned lease or a salary sacrifice scheme, then you are eligible. If you drive a personal EV lease, then you will not be eligible for The Charge Scheme.

• Do I need to use the same provider for both schemes?

  No. The Charge Scheme is designed to work alongside any EV salary sacrifice provider. Your employer can keep their existing vehicle scheme and simply add The Charge Scheme as a bolt-on benefit.

• What happens if I already have a company EV but no charging scheme?

  You can add The Charge Scheme at any time during your lease period. Speak to your HR department about implementing The Charge Scheme to start saving on charging costs immediately.

• How do the tax savings work for both schemes?

  Both schemes reduce your gross salary before tax calculations. If you're a 40% taxpayer, you save approximately 42% on both your vehicle and charging costs through the combined Income Tax and National Insurance reductions.

• Can I add a home charger to my EV salary sacrifice package?

  Many EV salary sacrifice schemes allow you to include home charger installation in your monthly package. Additionally, The Charge Scheme covers the ongoing electricity costs of home charging through salary sacrifice.

• What if I leave my job while using both schemes?

  Your EV salary sacrifice typically ends with your employment. Similarly, The Charge Scheme ends when you return your company/salary sacrifice car. But you may be able to join a similar scheme with your next employer.

• Do both schemes affect my pension contributions?

  Salary sacrifice can reduce pension contributions if calculated on post-sacrifice salary. However, most employers calculate pensions on pre-sacrifice salary to maintain pension benefits. Discuss this with your HR department when enrolling.

• How much can I realistically save with both schemes?

  A typical higher rate taxpayer could save:

  • £2,500-£3,500 annually on EV salary sacrifice

  • £500-£1,000 annually on charging salary sacrifice

  • Total combined savings: £3,000-£4,500 per year

• Are there any downsides to using both schemes?

  The main consideration is reduced take-home pay due to salary sacrifice deductions. However, the tax savings and included benefits typically outweigh this reduction. Calculate your net position before committing.

• How long does it take to set up both schemes?

  EV salary sacrifice can take 2-12 weeks, depending on vehicle availability. The Charge Scheme setup takes just minutes once your employer is enrolled, and you can start saving immediately.

Last updated: 29/01/2026

Our pricing: is based on data collected from The Charge Scheme Calculator. All final pricing is inclusive of VAT. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The Charge Scheme is a product of The Electric Car Scheme™ – a trusted, trademarked brand dedicated to making electric driving more affordable. All rights reserved. The Electric Car Scheme is the trading style of The Electric Car Scheme Limited (company number 12646157, ICO number ZB030706, VAT number 439430195) and The Electric Car Scheme Holdings Limited (company number 13295877, ICO number ZB252629). Head office & registered address: The Shipping Building, 254 Blyth Road, Hayes, UB3 1HA. The Electric Car Scheme Limited provides services for the administration of salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608) is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender.

Copyright and Image Usage: All images used on this website are either licensed for commercial use or used with express permission from the copyright holders, in compliance with UK and EU copyright law. We are committed to respecting intellectual property rights and maintaining full compliance with applicable regulations. If you have any questions or concerns regarding image usage or copyright matters, please contact us at marketing@electriccarscheme.com and we will address them promptly.

Note on Tesla Pricing: Tesla charges a partner roaming rate to Tesla drivers when using third-party cards, which is higher than their direct rate.