What Is Salary Sacrifice Charging? A Complete 2026 Guide
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There are now over 1.8 million electric cars in the UK, representing a significant shift towards sustainable transport. However, one of the most significant barriers preventing wider EV adoption remains the rising cost of charging. While electric vehicles offer substantial long-term savings compared to petrol and diesel alternatives, upfront costs and ongoing charging expenses can feel overwhelming for many potential drivers.
Enter salary sacrifice charging: an innovative employee benefit that's transforming how UK workers approach electric car ownership and running costs.
What Is Salary Sacrifice Charging?
Salary sacrifice charging is a workplace benefit scheme that enables employees to save 20-50% on all their electric vehicle charging costs, regardless of where they charge. Whether you're charging at home, at the workplace, or using public charging networks, The Charge Scheme provides comprehensive coverage whilst delivering substantial tax savings.
The fundamental principle behind salary sacrifice EV charging is straightforward: you pay for your charging costs from your gross salary before tax, and National Insurance deductions are calculated. This seemingly simple change delivers powerful financial benefits, potentially saving drivers £300-£1,000 annually on their EV charging expenses.
The Charge Scheme represents the UK's first and only dedicated salary sacrifice charging solution, specifically designed to address the affordability challenges facing electric vehicle drivers across the country.
How Does Traditional Salary Sacrifice Work?
Before exploring the specifics of EV charging salary sacrifice, it's helpful to understand the broader concept of salary sacrifice schemes in the UK.
Salary sacrifice represents a legal arrangement where employees voluntarily agree to reduce their gross salary in exchange for non-cash benefits. Because these benefits are provided before tax and National Insurance calculations, both employees and employers benefit financially.
Common examples of traditional salary sacrifice benefits include:
Pension contributions
Electric car salary sacrifice schemes
Cycle-to-Work schemes
Childcare vouchers
Health insurance
The primary advantage lies in the substantial tax savings generated. When you salary sacrifice a benefit, you pay from your gross salary before tax deductions, rather than from your net salary after tax. The higher your tax rate, the greater your potential savings through salary sacrifice arrangements.
How Does Salary Sacrifice Charging Work in Practice?
The salary sacrifice charging scheme operates through a straightforward four-step process designed for maximum convenience and minimal administrative burden:
Step 1: Employee Setup
Employees receive access to The Charge Scheme app and a dedicated charge card for public charging stations. The setup process takes just minutes, providing immediate access to over 76,000 charging points across the UK's comprehensive public charging network.
Step 2: Monthly Mileage Submission
Each month, employees submit their mileage through an intuitive portal that takes approximately 10 seconds to complete. This simple step ensures accurate calculation of business versus personal charging costs.
Step 3: Intelligent Cost Calculation
The Charge Scheme automatically calculates all charging costs, including:
Home charging: Compatible with any home charger and any energy tariff
Public charging: Access to thousands of charging points via The Charge Scheme app
Office charging: Works with any workplace charging provider
Step 4: Payroll Adjustment
Employers receive clear payroll instructions to implement the salary sacrifice deduction from the employee's gross salary. The system handles complex calculations automatically, ensuring HMRC compliance whilst minimising administrative workload.
What Makes The Charge Scheme Different?
Created by the award-winning team behind The Electric Car Scheme, The Charge Scheme addresses a critical gap in the UK's electric vehicle infrastructure: charging affordability.
The Charging Cost Challenge
Despite recent improvements in public charging infrastructure, EV charging remains prohibitively expensive for many drivers. Public rapid charging can cost up to 87p per kWh on networks like Instavolt, translating to approximately 22p per mile – sometimes exceeding the cost of petrol or diesel alternatives.
Even with discounted rates, public charging typically costs 54p per kWh or more, equating to roughly 18p per mile. For the estimated 9 million UK households without access to off-street parking and home charging, these costs represent a significant barrier to EV adoption.
Comprehensive Coverage Across All Charging Scenarios
The Charge Scheme provides universal coverage for:
All Public Charging
Access to over 76,000 public chargers nationwide
Compatible with major charging networks including Tesla Superchargers
Single app and card solution eliminating multiple accounts
All Home Charging
Works with any home charging setup
Compatible with all energy tariffs
No restrictions on charger type or installation
All Office Charging
Integrates with any workplace charging provider
Simple plug-in-and-save functionality
Covers paid office charging arrangements
Who Benefits from Salary Sacrifice Charging?
Benefits for Employees
Substantial Financial Savings
Employees can save between £300 and £1,000 annually on personal charging costs. These 20-50% savings apply regardless of charging location or frequency, making electric vehicle ownership significantly more affordable.
Simplified Administration
Gone are the days of complex mileage calculations, receipt collection, and expense claims. The Charge Scheme calculates the real cost of charging automatically, removing guesswork and administrative burden for employees.
Universal Compatibility
The scheme works with any electric vehicle and any company car arrangement, whether employees drive company cars or use existing EV salary sacrifice schemes.
Immediate Setup
The app and charge card can be configured in minutes, with no complex onboarding processes or lengthy approval procedures required.
Benefits for Employers
Zero-Cost Implementation
The Charge Scheme bolts directly onto existing company car schemes with no additional cost or administrative burden for employers. It represents a genuine zero-cost addition to employee benefits packages.
Enhanced Scheme Uptake
By addressing one of the main barriers to EV adoption, employers see increased participation in their electric vehicle schemes. This supercharges existing company car programmes and demonstrates a genuine commitment to employee wellbeing.
Net Zero Acceleration
Offering salary sacrifice charging increases the incentive for employees to choose electric vehicles, directly supporting corporate sustainability goals and Net Zero commitments.
Competitive Advantage
Forward-thinking employers can differentiate themselves in the talent market by offering benefits that address real employee concerns about EV ownership costs.
How Much Can You Actually Save?
The savings from salary sacrifice charging depend on several factors:
Tax Rate Impact
Your savings increase with your tax bracket:
Basic rate taxpayers (20%): Save approximately 32% (20% Income Tax + 12% National Insurance)
Higher rate taxpayers (40%): Save approximately 42% (40% Income Tax + 2% National Insurance)
Additional rate taxpayers (45%): Save approximately 47% (45% Income Tax + 2% National Insurance)
Charging Pattern Influence
Your annual savings vary based on charging frequency and location:
High-mileage drivers relying heavily on public charging: up to £1,000 annually
Mixed charging users (home and public): £500-£750 annually
Primarily home charging: £300-£500 annually
These calculations assume typical EV running costs and charging patterns for UK drivers completing 10,000-15,000 miles annually.
Understanding the Tax Implications
How Salary Sacrifice Affects Your Tax Position
When you participate in salary sacrifice charging, several tax considerations come into play:
Gross salary reduction: Monthly charging costs are deducted before tax calculations
Reduced taxable income: Lower taxable income results in reduced Income Tax and National Insurance contributions
Net savings: Tax savings significantly offset charging costs
Real-World Success Stories
Shaw Education Trust
Shaw Education Trust, a multi-academy trust serving over 11,000 students, implemented The Charge Scheme as a zero-cost addition to their benefits package.
Stephen Watson, Chief People Officer, noted the enthusiasm from their team: "Since implementing The Charge Scheme as a zero-cost addition to our benefits package, we've seen remarkable enthusiasm from our team. The ability to save 20-50% on all charging costs through salary sacrifice has removed a significant barrier for educators considering the switch to electric vehicles."
Europa Worldwide Group
Europa Worldwide, one of the UK's largest transport and logistics companies, implemented The Charge Scheme for its mobile workforce.
"For a logistics company like ours, with team members on the move across various sites, the ability for our staff to save 20-50% on all charging costs through salary sacrifice has been transformative in encouraging the switch to electric vehicles," explains Amy Gordon, HR Coordinator.
The comprehensive coverage of home, company sites, and public network charging created minimal administrative burden, whilst several team members reported annual savings exceeding £600.
Red Badger Employee Experience
John Godfrey from Red Badger leased an MG4 through EV salary sacrifice. Without access to a home charger, he faced higher public charging costs. The Charge Scheme provided relief by enabling him to recover savings through salary sacrifice, with expected annual savings exceeding £600.
"Since I don't have a home charger I have been spending a lot on electricity from public charge points, I was pretty relieved to find out that there's a way to get some savings back through salary sacrifice. It'll likely save me more than £50 per month."
How to Get Started with Salary Sacrifice Charging
For Companies with Existing Car Schemes
If your organisation already operates a company car scheme, integration is straightforward:
Initial consultation: The Charge Scheme team works with your existing scheme provider
Employee communication: Clear guidance helps communicate the new benefit
App distribution: Employees receive access to the app and physical charge card
Payroll integration: Simple monthly instructions enable payroll processing
Ongoing support: Continuous support ensures smooth operation
For Companies Without Car Schemes
Companies without existing schemes can implement The Electric Car Scheme, which offers complete EV salary sacrifice car programmes with integration of The Charge Scheme from day one.
FAQ’s
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Yes, salary sacrifice charging operates within HMRC guidelines for salary sacrifice arrangements. The Charge Scheme has been designed to ensure full compliance with UK tax regulations whilst maximising employee savings.
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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.
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If you change employers, your participation in The Charge Scheme ends with your employment and the return of your company car. However, many forward-thinking employers now offer similar benefits, and you may be able to join The Charge Scheme with your next employer.
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Once your employer implements The Charge Scheme, you can start saving immediately. Setup takes just minutes, and your first salary sacrifice deductions will apply in the following month after registration.
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Yes, the scheme gives both Tesla and non-Tesla drivers access to the network across Europe.
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The Charge Scheme provides access to over 76,000 public charging points across the UK, including major networks such as:
BP Pulse
Shell Recharge
Pod Point
IONITY
Instavolt
And many more
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Yes! You can salary sacrifice both your electric vehicle lease through an existing car scheme and your charging costs through The Charge Scheme, maximising your overall tax efficiency and savings.
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Home charging costs vary depending on your energy tariff, but The Charge Scheme works with any tariff to help you save 20-50% through salary sacrifice, regardless of your charging setup.
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.
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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.
