Electric cars and salary sacrifice have become increasingly common bedfellows in recent years. But there's a newer option starting to gain traction too: getting a used EV through a salary sacrifice scheme.

New figures from car benefits provider Tusker suggest demand is growing quickly, with deliveries through its used car scheme rising by more than 500%. It says drivers are also using the lower cost of used cars to access more premium models than they might otherwise choose brand new.

So, how does EV salary sacrifice actually work, how much could it save you, and is choosing a used electric car a good idea?

What is electric car salary sacrifice?

Salary sacrifice is an arrangement between you and your employer where you agree to give up part of your gross salary in return for a benefit.

With an EV salary sacrifice scheme, that benefit is an electric car.

Because the payment is taken from your salary before Income Tax and National Insurance are calculated, it can reduce the amount of tax you pay. Instead, you'll normally pay Benefit-in-Kind tax on the car.

Of course, not every employer offers a car salary sacrifice scheme, so the first thing to do is check whether one is available through your workplace.

It's worth noting that HMRC says salary sacrifice cannot reduce your cash earnings below the National Minimum Wage.

Why are electric cars popular for salary sacrifice?

The big attraction is their low Benefit-in-Kind, or BiK, tax rate.

For the 2026/27 tax year, a zero-emission electric car has a BiK percentage of 4%, which rises to 5% in 2027/28, followed by 7% in 2028/29 and 9% in 2029/30.

While those numbers seem to be rising, it remains considerably lower than the percentage applied to many petrol and diesel company cars.

As a simple example, an electric car with a £40,000 taxable list price would have a £1,600 taxable benefit at the current 4% rate.
Someone paying Income Tax at 20% would therefore pay £320 a year in tax on that benefit, while someone paying 40% would pay £640.
That isn't the total cost of having the car. You still sacrifice part of your salary to pay for it, but it helps explain why EVs can work particularly well under salary sacrifice.

Can you get a used EV through salary sacrifice?

Yes, although it depends on the scheme offered by your employer.

Used EV salary sacrifice is still relatively new, but a growing number of providers now offer used or nearly-new electric cars alongside brand-new ones.

Cars will usually have eligibility criteria around their age, mileage and condition, while the exact choice of models will depend on the provider and the cars it has available.

Tusker says 77% of its employer customers now offer its pre-loved scheme, while other salary sacrifice providers have also started offering used EVs, too.

Is a used electric car cheaper through salary sacrifice?

Yes, potentially, as a used electric car has already gone through some of its initial depreciation, which can make the cost of supplying the car lower than an equivalent brand-new model.

In turn, that could mean a smaller monthly salary sacrifice or allow you to choose a more expensive or better-equipped car, all for a similar budget.

Although there is one important detail to understand.

Benefit-in-Kind tax on a second-hand company car isn't calculated using the price it's worth today.

HMRC uses the car's original list price from when it was new. In fact, its company-car guidance says second-hand cars are treated in the same way as new cars for this part of the calculation.

So, imagine you're choosing between a new £35,000 EV and a used premium EV that originally cost £55,000.
The used car might have the lower monthly lease cost because of depreciation, but its BiK calculation would still start with that original £55,000 list price.
It doesn't necessarily make the used car poor value, but it's worth looking at the total monthly cost rather than assuming used will automatically be cheaper in every respect.

What is normally included with EV salary sacrifice?

It depends on the provider, but many schemes bundle several motoring costs into one monthly amount.

That can include insurance, servicing and maintenance, breakdown cover, replacement tyres and road tax.

This can make the monthly cost easier to compare with owning or financing a car yourself, where those bills usually arrive separately.

Always check exactly what's included before signing up, particularly insurance terms, mileage limits and maintenance.

What should you check before choosing a used EV salary sacrifice deal?

You shouldn't judge a salary sacrifice deal purely by the monthly saving.

It's actually worth looking at how much your take-home pay will actually fall after tax, National Insurance and Benefit-in-Kind tax are taken into account.

It's also wise to check the agreement's mileage allowance, charges for exceeding it and what happens if you leave your employer before the end of the contract.

Reducing your contractual salary can also affect some earnings-related benefits and statutory payments, depending on how your employer operates the scheme.

HMRC advises employees to consider the effect salary sacrifice can have on things such as statutory pay and pension arrangements.
And if you're choosing a used EV, check its age, mileage, remaining manufacturer and battery warranty and what condition standards the provider applies.

Is used EV salary sacrifice worth it?

It can be a cost-effective way to drive an electric car, particularly if your employer offers a competitive scheme and you'd be paying for a car anyway.

Used EV salary sacrifice adds another option. A car that's already taken its biggest depreciation hit could cost less each month, while premium models that were expensive when new may suddenly fall within reach.

But compare the complete package rather than simply looking at the car's used value.

Check the salary reduction, your Benefit-in-Kind tax, what's included in the deal and what would happen if your circumstances changed during the agreement.

If the numbers work for you, salary sacrifice could make switching to an EV, new or used, considerably more affordable.