This guide walks you through potential savings and costs involved in a Ford Mustang Mach-E salary sacrifice scheme.
The Ford Mustang Mach-E is one of the best EV salary sacrifice options in the UK market today.
This salary sacrifice example walks through the potential savings and costs involved in a Ford Mustang Mach-E salary sacrifice scheme. We look at the potential impact on income tax, National Insurance (NI), and Benefit In Kind (BIK).
Editors Pick: Ford Mustang Salary Sacrifice Provider
- Choose £400 home charging credit, £400 off a home charger or £400 Electroverse credit
- Compatible with Octopus Energy's smart EV tariffs
- Approved Used vehicles available
- Early termination protection built into every lease
The calculations are based on the Mustang Mach-E’s P11D list price and its typical monthly lease cost. We’ve looked at three income tax bands – 20%, 40%, and 45%. This offers a view of a broad spectrum of salary bands and provides a general understanding of the potential financial pros and cons of salary sacrifice.
How we calculated our Ford Mustang 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 on 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.
These calculations provide a starting point for understanding how an EV salary sacrifice scheme could impact your monthly outgoings if you were to lease or subscribe to a Ford Mustang. They should be used as a guide rather than definitive advice, and it is always recommended to consult with an accountant for personalised advice.
Mustang Mach-E Salary Sacrifice example @ 20% tax rate
- P11D list price: £50,830
- Monthly lease cost: £881
- Income tax rate: 20%
- Income tax Saved: £881 × 20% = £176.20
- National Insurance (NI) Saved: £881 × 2% = £17.62
- Benefit In Kind (BIK) Paid @ 2%: (£50,830 × 2%) ÷ 12 = £84.72
- Employer’s National Insurance (NI) on BiK: £84.72 × 13.8% = £11.69
Net monthly cost: £881 – £176.20 – £17.62 + £84.72 = £772.90
Mustang Mach-E Salary Sacrifice example @ 40% tax rate
- P11D list price: £50,830
- Monthly lease cost: £881
- Income tax rate: 40%
- Income tax Saved: £881 × 40% = £352.40
- National Insurance (NI) Saved: £881 × 2% = £17.62
- Benefit In Kind (BIK) Paid @ 2%: (£50,830 × 2%) ÷ 12 = £84.72
- Employer’s National Insurance (NI) on BiK: £84.72 × 13.8% = £11.69
Net monthly cost: £881 – £352.40 – £17.62 + £84.72 = £595.70
Mustang Mach-E Salary Sacrifice example @ 45% tax rate
- P11D list price: £50,830
- Monthly lease cost: £881
- Income tax rate: 45%
- Income tax Saved: £881 × 45% = £396.45
- National Insurance (NI) Saved: £881 × 2% = £17.62
- Benefit In Kind (BIK) Paid @ 2%: (£50,830 × 2%) ÷ 12 = £84.72
- Employer’s National Insurance (NI) on BiK: £84.72 × 13.8% = £11.69
Net monthly cost: £881 – £396.45 – £17.62 + £84.72 = £551.65
The final word on Ford Mustang Salary Sacrifice schemes
We can see from the figures there are savings to be gained from taking out a Ford Mustang on a salary sacrifice, especially for higher taxpayers who are able to bundle in added extra such as roadside assistance and Ford Mustang Insurance. These figures are completely illustrative and individual circumstances will vary. The Ford Mustang examples should be used as a starting point before committing to a salary sacrifice scheme.
Remember, once you sign up for a salary sacrifice scheme you might not be able to exit the scheme early without incurring a fee. So it’s a good idea to review your own tax situation and, if needed, seek advice before you sign the contract.
- Choose £400 home charging credit, £400 off a home charger or £400 Electroverse credit
- Compatible with Octopus Energy's smart EV tariffs
- Approved Used vehicles available
- Early termination protection built into every lease
John is the Editor and Spokesperson for Electric Car Guide.
With over 20 years of writing experience, he has written for titles such as City AM, FE News and NerdWallet.com, covering various automotive and personal finance topics.
John’s market commentary has been covered by the likes of The Express, The Independent, Yahoo Finance and The Evening Standard.
