The Jaguar I-PACE salary sacrifice lets employees lease a pure electric SUV that merges legendary Jaguar performance and cutting-edge EV technology. The Jaguar I-PACE is available to lease or subscribe to via most UK salary sacrifice car schemes.
In this guide, we provide examples of the financial implications of taking a Jaguar I-PACE through a salary sacrifice scheme. The figures presented here demonstrate the approximate monthly savings and cost, depending on your income tax bracket. By examining the car’s P11D list price and its typical monthly lease cost, we can give you an overview of how much you can save via a Jaguar salary sacrifice.
Editor Pick: Jaguar I-PACE Salary Sacrifice Provider
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- Built-in early termination protection
How we calculated our Jaguar I-PACE 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 BIK rate for EVs is 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 Jaguar I-PACE. They should be used as a guide rather than definitive advice, and it is always recommended to consult with an accountant for personalised advice.
Jaguar I-PACE Salary Sacrifice example @ 20% tax rate
- P11D list price: £69,995
- Monthly lease cost: £1231
- Income tax rate: 20%
- Income tax Saved: £246.20 (20% of £1231)
- National Insurance (NI) Saved: £24.62 (2% of £1231)
- Benefit In Kind (BIK) Paid @ 2%: £116.66 (2% of P11D price divided by 12)
- Employer’s National Insurance (NI) on BiK: £16.08 (13.8% of £116.66)
Net monthly cost: £1,076.84 (Monthly lease – Income Tax Saved – NI Saved + BIK Paid)
Jaguar I-PACE Salary Sacrifice example @ 40% tax rate
- P11D list price: £69,995
- Monthly lease cost: £1231
- Income tax rate: 40%
- Income tax Saved: £492.40 (40% of £1231)
- National Insurance (NI) Saved: £24.62 (2% of £1231)
- Benefit In Kind (BIK) Paid @ 2%: £116.66 (2% of P11D price divided by 12)
- Employer’s National Insurance (NI) on BiK: £16.08 (13.8% of £116.66)
Net monthly cost: £815.56 (Monthly lease – Income Tax Saved – NI Saved + BIK Paid)
Jaguar I-PACE Salary Sacrifice example @ 45% tax rate
- P11D list price: £69,995
- Monthly lease cost: £1231
- Income tax rate: 45%
- Income tax Saved: £553.95 (45% of £1231)
- National Insurance (NI) Saved: £24.62 (2% of £1231)
- Benefit In Kind (BIK) Paid @ 2%:£116.66 (2% of P11D price divided by 12)
- Employer’s National Insurance (NI) on BiK: £16.08 (13.8% of £116.66)
Net monthly cost: £802.01 (Monthly lease – Income Tax Saved – NI Saved + BIK Paid)
The final word on Jaguar I-PACE Salary Sacrifice Schemes
The Jaguar I-PACE, with its blend of luxury and high performance, sits at a premium price point of £69,995. While the monthly lease cost will for sure initially appear hefty, the Jaguar salary sacrifice scheme offers tangible financial benefits across all tax brackets. For instance, those in the 20% income tax bracket can anticipate a monthly saving of around £246.20 on income tax alone. When you add in the National Insurance savings, the overall monthly cost comes down further.
The Benefit In Kind cost, although added back to the monthly fee, is relatively minor compared to the overall tax savings, especially given the car’s high-end market positioning.
These examples are basic illustrations and before rushing off to order a new Jag on a salary sacrifice, consult with a financial advisor or tax professional to ensure the scheme works for your own individual financial circumstances.
- Free Ohme home charger
- 4,000 free miles of charging
- Intelligent Octopus EV tariff
- Public charging via Octopus Electroverse
- All EV's on the market
- Built-in early termination protection
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.
