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Last checked: 26 October 2026. Tax year 2026/27 where applicable.
A salary-sacrifice quote is a gross deduction, not the amount you necessarily lose from your bank account. Compare the estimated take-home reduction and charging costs with a private car arrangement over the same period.
How I would use this result
Start with a recent payslip, bill, statement or written quote. Replace the example amounts, change one assumption at a time, then check whether the difference would affect your household budget. Keep the assumptions beside the result so you can revisit the comparison when circumstances change.
How the calculation works
Recalculate annual Income Tax and employee Class 1 NI before and after sacrifice. Add the zero-emission company-car benefit to taxable income, not cash earnings for ordinary Class 1 NI. Add charging and other entered costs, spreading upfront payments across the selected months. Pension contributions remain at the entered gross amount in both cases.
Example: check the calculation
With £65,000 salary, no pension or loan, £500 monthly gross sacrifice and £40,000 P11D value, the 2026/27 take-home reduction is about £343.33 monthly in England, Wales or Northern Ireland, before charging or other costs.
Before relying on the result
One employment, standard Personal Allowance and ordinary employee NI only. No student loans, other income, special tax codes, employer NI sharing, capital contributions or part-year vehicle availability. This is an annualised planning estimate, not a payroll quote. Relief-at-source results assume additional pension tax relief is claimed. Confirm minimum-wage compliance, pension/reference-salary treatment, statutory-pay effects and early-termination terms with your employer. Future-year selections change BIK only; other tax/NI assumptions remain 2026/27. The private car comparison does not model resale value or finance balloon payments: include relevant costs or choose a comparable lease.
Your questions answered
Is the gross quote what I pay?
No. Tax and NI can reduce the cash impact, while BIK adds a tax cost.
Can the scheme cost more than a private car?
Yes. The result can show a negative saving. Use equivalent vehicles, mileage, periods and insurance assumptions.
Will my pension fall?
That depends on your employer’s scheme. This model holds your entered contribution fixed and cannot infer defined-benefit pension effects.
Sources and checking
Rules checked on 26 October 2026. Tax parameters, where applicable, are for 2026/27. User-entered prices and growth assumptions are not verified market rates.
- HMRC: payroll rates 2026/27
- HMRC: adjusted net income
- HMRC: company-car benefit percentages
- GOV.UK: future BIK rates
Related MoneySavvyUK tools
For a practical next step, visit my free workbook and money tools, or browse my household planners. Calculators remain free and do not require an email address.
Created by Dr Kalpana Govindaraasan, the PhD scientist and UK mum behind MoneySavvyUK. I am not a financial adviser. These are planning estimates and general information.
Created by Dr Kalpana Govindaraasan at MoneySavvyUK. General information and planning estimates, not personal financial advice. Report a problem with this calculator.