Your employer’s just announced an EV car scheme and the savings look tempting. A brand new electric car, deducted from your gross salary before tax, with insurance and maintenance rolled in. Sounds great on paper. But before you start browsing models and picking colours, there are a few things you’ll want to nail down first.
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The glossy FAQ your HR team sends round won’t cover everything, and some of the stuff that actually matters tends to get buried in the fine print.
What Happens if I Leave my Job?
A salary sacrifice lease typically runs for two, three or four years. If you hand in your notice halfway through, the remaining payments don’t just disappear.
Some schemes will let you take over the lease personally, but the monthly cost will usually jump because you’ll lose the tax benefit. Others might hit you with an early termination fee. So ask your employer exactly what the process looks like and whether the provider offers any early exit protection. The last thing you want is a surprise bill landing on top of a career change.
What’s the Mileage Allowance?
Most EV salary sacrifice leases come with a set annual mileage limit. Common options range from 5,000 to 15,000 miles a year, with 8,000 or 10,000 being the most typical starting points. But be careful, because if you go over the agreed-upon limit, you’ll face excess mileage charges at the end of the lease.
Have a proper think about your actual driving habits. If you’ve got a long commute or you regularly drive to see family, make sure the mileage cap fits your life. Even the best EV salary sacrifice scheme on paper will cost you more than expected if the annual limit doesn’t match how you actually drive. Get the mileage right before you compare monthly payments.
Also check what counts as “fair wear and tear” at the end of the lease. Small dents, kerbed alloys and interior stains can all attract charges when the car goes back, and with kids in the back, normal use adds up. Ask the provider for their return condition guide before you sign up.
How Does Parental Leave Affect the Payments?
If you’re planning to start or grow your family, this one matters. During maternity or paternity leave, your salary drops, and depending on how your employer handles the deductions, payments could pause, reduce or move to an after-tax arrangement.
The key question is whether the scheme provider has a clear policy for parental leave and whether your employer will continue to cover the cost or pass it back to you. Also keep in mind that a salary sacrifice arrangement can lower your qualifying earnings, which may affect your statutory maternity pay calculation. It sounds like a minor thing, but it can add up to real money.
If you’re planning to buy a home or remortgage in the next year or two, bear in mind that salary sacrifice reduces your gross salary on paper. Most lenders will use the post-sacrifice figure when assessing what you can borrow, which could reduce your maximum mortgage amount. Talk to a broker before committing if a property purchase is on the cards.
Does the Insurance Cover a Partner?
The insurance bundled into most schemes will cover the primary driver, but adding a spouse or partner isn’t always automatic. Some policies include it, some charge extra, and some don’t allow it at all. If your other half will be sharing the car for school runs or weekends, check the detail before you commit.
What Does the BIK Charge Look Like on the Payslip?
Benefit-in-kind tax is the trade-off for leasing through your employer. For fully electric cars, the BIK rate is currently just 4% for the 2026/27 tax year, and that’s a big part of what makes these schemes so attractive. It’ll rise to 5% in 2027/28 and reach 9% by 2029/30, but even at the top end it’s a fraction of what petrol and diesel drivers pay. But it’s still a charge, and it’ll show up on your payslip as a taxable benefit.
Ask your payroll team to show you a breakdown so you can see the real monthly cost after the BIK charge is applied. That way, there are no surprises when your first adjusted payslip lands.
Don’t Just Sign on the Dotted Line
An EV salary sacrifice scheme can genuinely save you thousands over the course of a lease. But those savings only work in your favour if the terms match your actual circumstances. Ask the awkward questions upfront and get the numbers in writing. Make sure the scheme fits around your life.