Modelling Class 1A NIC and P11D impacts
How to model Class 1A NIC and P11D correctly in EV salary sacrifice schemes.
• 1 min read•
payrollnicp11d
On this page
Why NIC modelling matters
The employer NIC saving is the central financial driver. Mistakes create budget risk.
A correct modelling approach
- Use the post-sacrifice gross salary
- Apply correct BIK percentages
- Calculate employer NIC on the BIK value
- Verify Class 1A at year end
Common pitfalls
Incorrect payroll assumptions or misapplied BIK bands can distort results significantly.
About the author
Written by Paul Fagan, Founder of Fagan & Company. Paul advises UK employers on EV salary sacrifice, fleet electrification, and insurance strategy.
Talk to us about your schemeNext up
28/01/2025 • 1 min read
How to get HR, payroll and fleet teams aligned
Most EV programmes fail due to poor cross-team alignment. Here is how to fix it.
30/11/2025 • 7 min read
Designing a compliant, low-risk EV salary sacrifice programme
How to structure an EV salary sacrifice programme that is commercially attractive, operationally robust and low risk for employers.