Calculator
Employer savings calculator
Model employer National Insurance savings from EV salary sacrifice, and the Class 1A NIC cost on the BIK benefit.
What savings does an EV salary sacrifice scheme create?
Salary sacrifice works by reducing an employee’s gross pay in exchange for an employer-provided car. Because gross pay falls, employer National Insurance falls too. This calculator estimates that saving across your participant base.
You may also need to pay Class 1A NIC on the Benefit-in-Kind value of the cars. For BEVs the BIK percentage is low, so the Class 1A cost is usually modest relative to the employer NIC saving.
2026/27 method
Gross salary sacrificed × participating employees × the selected employer NIC rate, less Class 1A NIC on the taxable car benefit.
The standard 2026/27 secondary and Class 1A rates are 15%. The model assumes sacrificed pay would otherwise attract standard employer NIC; validate thresholds, category letters and Employment Allowance separately.
Employer NIC savings calculator
Step 1
Scheme scale and average sacrifice.
This is the reduction in gross pay, not the employee’s net cost.
Step 2
Employer NIC and Class 1A assumptions.
Include Class 1A NIC on BIK?
Most salary sacrifice schemes attract Class 1A NIC on the benefit.
Step 3
Your estimated savings.
Net employer savings
£3,625.00 / month
That is £43,500 per year.
Employer NIC saved: £58,500 per year
Class 1A cost on BIK: £15,000 per year
Payroll reduced by: £390,000 per year
BIK assumptions
Used only for Class 1A NIC modelling.
Battery electric car?
If yes, we apply the current BEV BIK rate automatically.
Current BIK rate used: 4% (BEV, current UK tax year).
Summary
Employer NIC rate applied: 15%.
Class 1A NIC rate applied: 15% on taxable benefit.
These figures are estimates for guidance. Provider pricing, scheme rules, and payroll configuration can change exact results.
Using savings to keep schemes cost neutral
Many employers recycle some or all NIC savings into the scheme. That can help cover administration, early termination protection, or additional benefits without increasing corporate cost.
Employer savings FAQs
Want a full scheme cost model?
I can build an employer-grade business case including policy design, provider benchmarking, insurance and early termination assumptions, and carbon reporting outputs.