Mercedes-Benz, a name synonymous with luxury and performance, has plenty of EV salary sacrifice options for UK employees to consider.
In this guide, we provide examples of Mercedes-Benz salary sacrifice schemes applied to some of the most sought-after Mercedes-Benz EV models. Specifically, we look at the Mercedes EQA, Mercedes EQB, Mercedes EQE, Mercedes EQC, and the pinnacle of electric luxury, the Mercedes EQS.
We look at each Mercedes-Benz model’s P11D list price and their typical monthly lease costs, we then aim to provide an illustrative breakdown across three primary income tax bands – 20%, 40%, and 45%.
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How we calculated our Mercedes-Benz salary sacrifice examples
Each example breaks down the potential savings and costs involved in a Mercedes 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 electric vehicles is 2% of the P11D price (divided by 12 for a monthly figure) was used. - 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 Mercedes. They should be used as a guide rather than definitive advice, and it is always recommended to consult with an accountant for personalised advice before comparing the best EV salary sacrifice scheme that suits your own needs.
Mercedes-Benz salary sacrifice examples @ 20% tax rate
| Mercedes-Benz Model | P11D Price | Monthly Lease Cost | Income Tax Saved (20% band) | NI Saved (12%) | BIK Paid @ 2% | Net Cost (20% band) |
|---|---|---|---|---|---|---|
| Mercedes-Benz EQA | £53,010 | £755 | £151 | £15.10 | £88.35 | £677.25 |
| Mercedes-Benz EQB | £55,310 | £961 | £192.20 | £19.22 | £92.18 | £842.76 |
| Mercedes-Benz EQE | £74,345 | £1241 | £248.20 | £24.82 | £123.91 | £1091.89 |
| Mercedes-Benz EQC | £73,470 | £1431 | £286.20 | £28.62 | £122.45 | £1238.63 |
| Mercedes-Benz EQS | £105,610 | £1921 | £384.20 | £38.42 | £176.02 | £1674.40 |
Mercedes-Benz EQA Salary Sacrifice example @ 20% tax rate
- P11D list price: £53,010
- Monthly lease cost: £755
- Income tax rate: 20%
- Income Tax Saved: 20% of £755 = £151
- National Insurance (NI) Saved: 2% of £755 = £15.10
- Benefit In Kind (BIK) Paid @ 2%: 2% of £53,010 ÷ 12 = £88.35
Net monthly cost: £755 – £151 – £15.10 + £88.35 = £677.25
Mercedes-Benz EQB Salary Sacrifice example @ 20% tax rate
- P11D list price: £55,310
- Monthly lease cost: £961
- Income tax rate: 20%
- Income Tax Saved: 20% of £961 = £192.20
- National Insurance (NI) Saved: 2% of £961 = £19.22
- Benefit In Kind (BIK) Paid @ 2%: 2% of £55,310 ÷ 12 = £92.18
Net monthly cost: £961 – £192.20 – £19.22 + £92.18 = £842.76
Mercedes-Benz EQE Salary Sacrifice example @ 20% tax rate
- P11D list price: £74,345
- Monthly lease cost: £1241
- Income tax rate: 20%
- Income Tax Saved: 20% of £1241 = £248.20
- National Insurance (NI) Saved: 2% of £1241 = £24.82
- Benefit In Kind (BIK) Paid @ 2%: 2% of £74,345 ÷ 12 = £123.91
Net monthly cost: £1241 – £248.20 – £24.82 + £123.91 = £1091.89
Mercedes-Benz EQC Salary Sacrifice example @ 20% tax rate
- P11D list price: £73,470
- Monthly lease cost: £1431
- Income tax rate: 20%
- Income Tax Saved: 20% of £1431 = £286.20
- National Insurance (NI) Saved: 2% of £1431 = £28.62
- Benefit In Kind (BIK) Paid @ 2%: 2% of £73,470 ÷ 12 = £122.45
Net monthly cost: £1431 – £286.20 – £28.62 + £122.45 = £1238.63
Mercedes-Benz EQS Salary Sacrifice example @ 20% tax rate
- P11D list price: £105,610
- Monthly lease cost: £1921
- Income tax rate: 20%
- Income Tax Saved: £1921 x 20% = £384.20
- National Insurance (NI) Saved: £1921 x 2% = £38.42
- Benefit In Kind (BIK) Paid @ 2%: £105,610 x 2% ÷ 12 = £176.02
Net monthly cost: £1921 – £384.20 – £38.42 + £176.02 = £1674.40
Mercedes-Benz salary sacrifice examples @ 40% tax rate
| Mercedes-Benz Model | P11D Price | Monthly Lease Cost | Income Tax Saved (40% band) | NI Saved (12%) | BIK Paid @ 2% | Net Cost (40% band) |
|---|---|---|---|---|---|---|
| Mercedes-Benz EQA | £53,010 | £755 | £302 | £15.10 | £88.35 | £526.25 |
| Mercedes-Benz EQB | £55,310 | £961 | £384.40 | £19.22 | £92.18 | £649.56 |
| Mercedes-Benz EQE | £74,345 | £1241 | £496.40 | £24.82 | £123.91 | £843.69 |
| Mercedes-Benz EQC | £73,470 | £1431 | £572.40 | £28.62 | £122.45 | £952.43 |
| Mercedes-Benz EQS | £105,610 | £1921 | £768.40 | £38.42 | £176.02 | £1290.20 |
Mercedes-Benz EQA Salary Sacrifice example @ 40% tax rate
- P11D list price: £53,010
- Monthly lease cost: £755
- Income tax rate: 40%
- Income Tax Saved: 40% of £755 = £302
- National Insurance (NI) Saved: 2% of £755 = £15.10
- Benefit In Kind (BIK) Paid @ 2%: 2% of £53,010 ÷ 12 = £88.35
Net monthly cost: £755 – £302 – £15.10 + £88.35 = £526.25
Mercedes-Benz EQB Salary Sacrifice example @ 40% tax rate
- P11D list price: £55,310
- Monthly lease cost: £961
- Income tax rate: 40%
- Income Tax Saved: 40% of £961 = £384.40
- National Insurance (NI) Saved: 2% of £961 = £19.22
- Benefit In Kind (BIK) Paid @ 2%: 2% of £55,310 ÷ 12 = £92.18
Net monthly cost: £961 – £384.40 – £19.22 + £92.18 = £649.56
Mercedes-Benz EQE Salary Sacrifice example @ 40% tax rate
- P11D list price: £74,345
- Monthly lease cost: £1241
- Income tax rate: 40%
- Income Tax Saved: 40% of £1241 = £496.40
- National Insurance (NI) Saved: 2% of £1241 = £24.82
- Benefit In Kind (BIK) Paid @ 2%: 2% of £74,345 ÷ 12 = £123.91
Net monthly cost: £1241 – £496.40 – £24.82 + £123.91 = £843.69
Mercedes-Benz EQC Salary Sacrifice example @ 40% tax rate
- P11D list price: £73,470
- Monthly lease cost: £1431
- Income tax rate: 40%
- Income Tax Saved: 40% of £1431 = £572.40
- National Insurance (NI) Saved: 2% of £1431 = £28.62
- Benefit In Kind (BIK) Paid @ 2%: 2% of £73,470 ÷ 12 = £122.45
Net monthly cost: £1431 – £572.40 – £28.62 + £122.45 = £952.43
Mercedes-Benz EQS Salary Sacrifice example @ 40% tax rate
- P11D list price: £105,610
- Monthly lease cost: £1921
- Income tax rate: 40%
- Income Tax Saved: £1921 x 40% = £768.40
- National Insurance (NI) Saved: £1921 x 2% = £38.42
- Benefit In Kind (BIK) Paid @ 2%: £105,610 x 2% ÷ 12 = £176.02
Net monthly cost: £1921 – £768.40 – £38.42 + £176.02 = £1290.20
Mercedes-Benz salary sacrifice examples @ 45% tax rate
| Mercedes-Benz Model | P11D Price | Monthly Lease Cost | Income Tax Saved (45% band) | NI Saved (12%) | BIK Paid @ 2% | Net Cost (45% band) |
|---|---|---|---|---|---|---|
| Mercedes-Benz EQA | £53,010 | £755 | £339.75 | £15.10 | £88.35 | £488.50 |
| Mercedes-Benz EQB | £55,310 | £961 | £432.45 | £19.22 | £92.18 | £601.51 |
| Mercedes-Benz EQE | £74,345 | £1241 | £558.45 | £24.82 | £123.91 | £781.64 |
| Mercedes-Benz EQC | £73,470 | £1431 | £643.95 | £28.62 | £122.45 | £880.88 |
| Mercedes-Benz EQS | £105,610 | £1921 | £864.45 | £38.42 | £176.02 | £1194.15 |
Mercedes-Benz EQA Salary Sacrifice example @ 45% tax rate
- P11D list price: £53,010
- Monthly lease cost: £755
- Income tax rate: 45%
- Income Tax Saved: 45% of £755 = £339.75
- National Insurance (NI) Saved: 2% of £755 = £15.10
- Benefit In Kind (BIK) Paid @ 2%: 2% of £53,010 ÷ 12 = £88.35
Net monthly cost: £755 – £339.75 – £15.10 + £88.35 = £488.50
Mercedes-Benz EQB Salary Sacrifice example @ 45% tax rate
- P11D list price: £55,310
- Monthly lease cost: £961
- Income tax rate: 45%
- Income Tax Saved: 45% of £961 = £432.45
- National Insurance (NI) Saved: 2% of £961 = £19.22
- Benefit In Kind (BIK) Paid @ 2%: 2% of £55,310 ÷ 12 = £92.18
Net monthly cost: £961 – £432.45 – £19.22 + £92.18 = £601.51
Mercedes-Benz EQE Salary Sacrifice example @ 45% tax rate
- P11D list price: £74,345
- Monthly lease cost: £1241
- Income tax rate: 45%
- Income Tax Saved: 45% of £1241 = £558.45
- National Insurance (NI) Saved: 2% of £1241 = £24.82
- Benefit In Kind (BIK) Paid @ 2%: 2% of £74,345 ÷ 12 = £123.91
Net monthly cost: £1241 – £558.45 – £24.82 + £123.91 = £781.64
Mercedes-Benz EQC Salary Sacrifice example @ 45% tax rate
- P11D list price: £73,470
- Monthly lease cost: £1431
- Income tax rate: 45%
- Income Tax Saved: 45% of £1431 = £643.95
- National Insurance (NI) Saved: 2% of £1431 = £28.62
- Benefit In Kind (BIK) Paid @ 2%: 2% of £73,470 ÷ 12 = £122.45
Net monthly cost: £1431 – £643.95 – £28.62 + £122.45 = £880.88
Mercedes-Benz EQS Salary Sacrifice example @ 45% tax rate
- P11D list price: £105,610
- Monthly lease cost: £1921
- Income tax rate: 45%
- Income Tax Saved: £1921 x 45% = £864.45
- National Insurance (NI) Saved: £1921 x 2% = £38.42
- Benefit In Kind (BIK) Paid @ 2%: £105,610 x 2% ÷ 12 = £176.02
Net monthly cost: £1921 – £864.45 – £38.42 + £176.02 = £1194.15
The final word on Mercedes-Benz Salary Sacrifice schemes
Reviewing the figures from our Mercedes-Benz salary sacrifice examples, we can see that the salary sacrifice scheme effectively softens the financial impact of leasing an electric Mercedes, especially for those in the higher tax brackets.
For instance, while the EQS, with its lofty price tag of £105,610, might seem out of reach for many people, but the salary sacrifice scheme can offer significant savings – up to £865.95 per month for someone in the 45% tax bracket.
The figures presented in our examples are completely illustrative, but they still demonstrate the potential benefits of the salary sacrifice scheme for electric vehicles, especially when considering luxury brands like Mercedes-Benz. However, it’s crucial for both employers and employees to properly look at their specific tax situations, seek professional advice, and consider the total cost of ownership for the EV, and not just sign up to a scheme based on the tax savings on paper.
- 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.
