BMW Salary Sacrifice Examples

In this review of BMW Salary Sacrifice examples, we explore the financial costs of taking five popular BMW models through a salary sacrifice scheme: The BMW iX3, BMW iX1, BMW i4, BMW iX, and the luxury BMW i7.

You’ll discover detailed breakdowns for each model, alongside an illustration of your potential savings and net costs of taking an electric car on a salary sacrifice.

The figures presented in this guide are illustrative examples to provide a general overview of how the salary sacrifice scheme may work with these BMW models. Actual figures can vary based on your specific lease and salary sacrifice agreement.

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The Electric Car Scheme Salary Sacrifice
  • Competitive Prices
    Any brand, every model

  • Early Termination Protection
    From day 1 (excludes resignations)

  • All-Inclusive Package
    EV, Breakdown Cover, Insurance & Home Charger

  • B Corp Certified Business
    Highlights a dedication to sustainable and ethical business practices

How we calculated our BMW Salary Sacrifice examples

Each example breaks down the potential savings and costs involved in a salary sacrifice scheme, which includes:

  • The amount of income tax saved
    This is calculated as a percentage of the monthly lease cost and depends on your income tax band.

  • National Insurance (NI) savings
    For these examples, an employee’s NI rate of 2% was applied to the monthly lease cost.

  • The Benefit In Kind (BIK) that would be paid
    BIK is a tax applied to employees who receive benefits or perks on top of their salary. The current rate of 2% of the P11D price (divided by 12 for a monthly figure) was used.

  • The employer’s NI contribution to the BIK value
    This is calculated at a rate of 13.8% on the BIK value.

  • The net cost
    This represents the overall monthly cost to the employee after all deductions and additions.

  • Monthly lease cost
    We took this figure from the current Octopus Electric Vehicles price.

These calculations provide a starting point for understanding how an electric car salary sacrifice scheme could impact your monthly outgoings if you were to lease or subscribe to a BMW. They should be used as a guide rather than definitive advice, and it is always recommended to consult with an accountant for personalised advice.

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BMW Salary Sacrifice example @ 20% tax rate

BMW ModelP11D PriceMonthly Lease CostIncome Tax Saved (20% band)NI Saved (12%)BIK Paid @ 2%Employer's NI on BiK (13.8%)Net Cost (20% band)
BMW iX3£64,165£801£160.20£16.02£107.11£14.78£731.89
BMW iX1£53,295£871£174.2£17.42£88.82£12.25£768.20
BMW i4£57,890£961£192.20£19.22£96.48£13.31£846.06
BMW iX£69,905£1096£219.20£21.92£116.51£16.06£971.39
BMW i7£113,970£1925£385£38.50£189.95£26.19£1691.45

BMW iX3 Salary Sacrifice example @ 20% tax rate

  • P11D list price: £64,165
  • Monthly lease cost: £801
  • Income tax rate: 20%
  • Income tax Saved: £801 x 20% = £160.20
  • National Insurance (NI) Saved: £801 x 2% = £16.02
  • Benefit In Kind (BIK) Paid @ 2%: (£64,165 x 2%) ÷ 12 = £107.11
  • Employer’s National Insurance (NI) on BiK: (£107.11 x 13.8%) = £14.78

    Net monthly cost: £801 – £160.20 – £16.02 + £107.11 = £731.89

BMW iX1 Salary Sacrifice example @ 20% tax rate

  • P11D list price: £53,295
  • Monthly lease cost: £871
  • Income tax rate: 20%
  • Income Tax Saved: £871 x 20% = £174.2
  • National Insurance (NI) Saved: £871 x 2% = £17.42
  • Benefit In Kind (BIK) Paid @ 2%: (£53,295 x 2%) ÷ 12 = £88.82
  • Employer’s National Insurance (NI) on BiK: (£88.825 x 13.8%) = £12.25

    Net monthly cost: £871 – £174.20 – £17.42 + £88.82 = £768.20

BMW i4 Salary Sacrifice example @ 20% tax rate

  • P11D list price: £57,890
  • Monthly lease cost: £961
  • Income tax rate: 20%
  • Income Tax Saved: £961 x 20% = £192.20
  • National Insurance (NI) Saved: £961 x 2% = £19.22
  • Benefit In Kind (BIK) Paid @ 2%: (£57,890 x 2%) ÷ 12 = £96.48
  • Employer’s National Insurance (NI) on BiK: (£96.48 x 13.8%) = £13.31

    Net monthly cost: £961 – £192.20 – £19.22 + £96.48 = £846.06

BMW iX Salary Sacrifice example @ 20% tax rate

  • P11D list price: £69,905
  • Monthly lease cost: £1096
  • Income tax rate: 20%
  • Income Tax Saved: £1096 x 20% = £219.20
  • National Insurance (NI) Saved: £1096 x 2% = £21.92
  • Benefit In Kind (BIK) Paid @ 2%: (£69,905 x 2%) ÷ 12 = £116.51
  • Employer’s National Insurance (NI) on BiK: (£116.51 x 13.8%) = £16.06

    Net monthly cost: £1096 – £219.20 – £21.92 + £116.51 = £971.39

BMW i7 Salary Sacrifice example @ 20% tax rate

  • P11D list price: £113,970
  • Monthly lease cost: £1925
  • Income tax rate: 20%
  • Income Tax Saved: £1925 x 20% = £385
  • National Insurance (NI) Saved: £1925 x 2% = £38.50
  • Benefit In Kind (BIK) Paid @ 2%: (£113,970 x 2%) ÷ 12 = £189.95
  • Employer’s National Insurance (NI) on BiK: (£189.95 x 13.8%) = £26.19

    Net monthly cost: £1925 – £385 – £38.50 + £189.95 = £1691.45

BMW Salary Sacrifice example @ 40% tax rate

BMW ModelP11D PriceMonthly Lease CostIncome Tax Saved (40% band)NI Saved (12%)BIK Paid @ 2%Employer's NI on BiK (13.8%)Net Cost (40% band)
BMW iX3£64,165£801£320.40£16.02£107.11£14.78£571.69
BMW iX1£53,295£871£348.40£17.42£88.82£12.25£593.99
BMW i4£57,890£961£384.40£19.22£96.48£13.31£653.86
BMW iX£69,905£1096£438.40£21.92£116.51£16.06£752.19
BMW i7£113,970£1925£770£38.50£189.95£26.19£1306.45

BMW iX3 Salary Sacrifice example @ 40% tax rate

  • P11D list price: £64,165
  • Monthly lease cost: £801
  • Income tax rate: 40%
  • Income Tax Saved: £801 x 40% = £320.40
  • National Insurance (NI) Saved: £801 x 2% = £16.02
  • Benefit In Kind (BIK) Paid @ 2%: (£64,165 x 2%) ÷ 12 = £107.11
  • Employer’s National Insurance (NI) on BiK: (£107.11 x 13.8%) = £14.78

    Net monthly cost: £801 – £320.40 – £16.02 + £107.11 = £571.69

BMW iX1 Salary Sacrifice example @ 40% tax rate

  • P11D list price: £53,295
  • Monthly lease cost: £871
  • Income tax rate: 40%
  • Income Tax Saved: £871 x 40% = £348.40
  • National Insurance (NI) Saved: £871 x 2% = £17.42
  • Benefit In Kind (BIK) Paid @ 2%: (£53,295 x 2%) ÷ 12 = £88.82
  • Employer’s National Insurance (NI) on BiK: (£88.825 x 13.8%) = £12.25

    Net monthly cost: £871 – £348.40 – £17.42 + £88.82 = £593.99

BMW i4 Salary Sacrifice example @ 40% tax rate

  • P11D list price: £57,890
  • Monthly lease cost: £961
  • Income tax rate: 40%
  • Income Tax Saved: £961 x 40% = £384.40
  • National Insurance (NI) Saved: £961 x 2% = £19.22
  • Benefit In Kind (BIK) Paid @ 2%: (£57,890 x 2%) ÷ 12 = £96.48
  • Employer’s National Insurance (NI) on BiK: (£96.48 x 13.8%) = £13.31

    Net monthly cost:£961 – £384.40 – £19.22 + £96.48 = £653.86

BMW iX Salary Sacrifice example @ 40% tax rate

  • P11D list price: £69,905
  • Monthly lease cost: £1096
  • Income tax rate: 40%
  • Income Tax Saved: £1096 x 40% = £438.40
  • National Insurance (NI) Saved: £1096 x 2% = £21.92
  • Benefit In Kind (BIK) Paid @ 2%: (£69,905 x 2%) ÷ 12 = £116.51
  • Employer’s National Insurance (NI) on BiK: (£116.51 x 13.8%) = £16.06

    Net monthly cost: £1096 – £438.40 – £21.92 + £116.51 = £752.19

BMW i7 Salary Sacrifice example @ 40% tax rate

  • P11D list price: £113,970
  • Monthly lease cost: £1925
  • Income tax rate: 40%
  • Income Tax Saved: £1925 x 40% = £770
  • National Insurance (NI) Saved: £1925 x 2% = £38.50
  • Benefit In Kind (BIK) Paid @ 2%: (£113,970 x 2%) ÷ 12 = £189.95
  • Employer’s National Insurance (NI) on BiK: (£189.95 x 13.8%) = £26.19

    Net monthly cost: £1925 – £770 – £38.50 + £189.95 = £1306.45

BMW Salary Sacrifice example @ 45% tax rate

BMW ModelP11D PriceMonthly Lease CostIncome Tax Saved (45% band)NI Saved (12%)BIK Paid @ 2%Employer's NI on BiK (13.8%)Net Cost (45% band)
BMW iX3£64,165£801£360.45£16.02£107.11£14.78£531.64
BMW iX1£53,295£871£391.95£17.42£88.82£12.25£550.45
BMW i4£57,890£961£432.45£19.22£96.48£13.31£605.81
BMW iX£69,905£1096£493.20£21.92£116.51£16.06£697.39
BMW i7£113,970£1925£866.25£38.50£189.95£26.19£1210.20

BMW iX3 Salary Sacrifice example @ 45% tax rate

  • P11D list price: £64,165
  • Monthly lease cost: £801
  • Income tax rate: 45%
  • Income Tax Saved: £801 x 45% = £360.45
  • National Insurance (NI) Saved: £801 x 2% = £16.02
  • Benefit In Kind (BIK) Paid @ 2%: (£64,165 x 2%) ÷ 12 = £107.11
  • Employer’s National Insurance (NI) on BiK: (£107.11 x 13.8%) = £14.78

    Net monthly cost: £801 – £360.45 – £16.02 + £107.11 = £531.64

BMW iX1 Salary Sacrifice example @ 45% tax rate

  • P11D list price: £53,295
  • Monthly lease cost: £871
  • Income tax rate: 45%
  • Income Tax Saved: £871 x 45% = £391.95
  • National Insurance (NI) Saved: £871 x 2% = £17.42
  • Benefit In Kind (BIK) Paid @ 2%: (£53,295 x 2%) ÷ 12 = £88.82
  • Employer’s National Insurance (NI) on BiK: (£88.82 x 13.8%) = £12.25

    Net monthly cost: £871 – £391.95 – £17.42 + £88.82 = £550.45

BMW i4 Salary Sacrifice example @ 45% tax rate

  • P11D list price: £57,890
  • Monthly lease cost: £961
  • Income tax rate: 45%
  • Income Tax Saved: £961 x 45% = £432.45
  • National Insurance (NI) Saved: £961 x 2% = £19.22 
  • Benefit In Kind (BIK) Paid @ 2%: (£57,890 x 2%) ÷ 12 = £96.48
  • Employer’s National Insurance (NI) on BiK: (£96.48 x 13.8%) = £13.31

    Net monthly cost: £961 – £432.45 – £19.22 + £96.48 = £605.81

BMW iX Salary Sacrifice example @ 45% tax rate

  • P11D list price: £69,905
  • Monthly lease cost: £1096
  • Income tax rate: 45%
  • Income Tax Saved: £1096 x 45% = £493.20
  • National Insurance (NI) Saved: £1096 x 2% = £21.92
  • Benefit In Kind (BIK) Paid @ 2%: (£69,905 x 2%) ÷ 12 = £116.51
  • Employer’s National Insurance (NI) on BiK: (£116.51 x 13.8%) = £16.06

    Net monthly cost: £1096 – £493.20 – £21.92 + £116.51 = £697.39

BMW i7 Salary Sacrifice example @ 45% tax rate

  • P11D list price: £113,970
  • Monthly lease cost: £1925
  • Income tax rate: 45%
  • Income Tax Saved: £1925 x 45% = £866.25
  • National Insurance (NI) Saved: £1925 x 2% = £38.50
  • Benefit In Kind (BIK) Paid @ 2%: (£113,970 x 2%) ÷ 12 = £189.95
  • Employer’s National Insurance (NI) on BiK: (£189.95 x 13.8%) = £26.19

    Net monthly cost: £1925 – £866.25 – £38.50 + £189.95 = £1210.20

The final word on BMW Salary Sacrifice examples

Our deep dive into the salary sacrifice scheme for various BMW models shows there can be a real bottom-line financial benefit to salary sacrifice arrangements.

The figures provide valuable insights into how different tax bands might impact the net cost for employees. You can see that salary sacrifice can offer savings, but the actual benefit that you receive will vary based on individual circumstances and the way that your salary sacrifice agreement is structured. There are pros and cons to salary sacrifice schemes and you should thoroughly research them before diving into a BMW scheme.

Best Rated EV Salary Sacrifice Scheme
The Electric Car Scheme Salary Sacrifice
  • Competitive Prices
    Any brand, every model

  • Early Termination Protection
    From day 1 (excludes resignations)

  • All-Inclusive Package
    EV, Breakdown Cover, Insurance & Home Charger

  • B Corp Certified Business
    Highlights a dedication to sustainable and ethical business practices

How we calculated our BMW Salary Sacrifice examples


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