Navigating salary sacrifice schemes can be challenging, especially as there is a huge range of electric vehicles and salary sacrifice providers on the market that all claim to offer the best EV salary sacrifice scheme. To help with your decision, we’ve provided some examples of Nissan’s salary sacrifice. We have illustrated salary sacrifice calculations for two Nissan EVs: the Nissan LEAF and the Nissan Ariya
We have looked at the salary sacrifice implications across three key income tax bands – 20%, 40%, and 45%. By using the models’ P11D list prices and typical monthly lease costs, we provide an illustration of the savings and costs involved in a salary sacrifice scheme for these Nissan EVs.
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How we calculated our Nissan 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 Nissan. They should be used as a guide rather than definitive advice, and it is always recommended to consult with an accountant for personalised advice.
Nissan Salary Sacrifice Examples at a 20% tax rate
| Nissan Model | P11D Price | Monthly Lease Cost | Income Tax Saved (20% band) | NI Saved (12%) | BIK Paid @ 2% | Employer's NI on BiK (13.8%) | Net Cost (20% band) |
|---|---|---|---|---|---|---|---|
| Nissan LEAF | £28,995 | £405 | £81 | £8.10 | £48.32 | £6.67 | £370.24 |
| Nissan Ariya | £39,645 | £656 | £131.20 | £13.12 | £66.08 | £9.12 | £587.88 |
Nissan LEAF Salary Sacrifice example @ 20% tax rate
- P11D list price: £28,995
- Monthly lease cost: £405
- Income Tax Saved: £81 (20% of £405)
- National Insurance (NI) Saved: £8.10 (2% of £405)
- Benefit In Kind (BIK) Paid @ 2%: £48.32 (2% of £28,995 ÷ 12)
- Employer’s National Insurance (NI) on BiK: £6.67 (13.8% of £48.32)
Net monthly cost: £370.24 (£405 – £81 – £8.10 + £48.32 + £6.67)
Nissan Ariya Salary Sacrifice example @ 20% tax rate
- P11D list price: £39,645
- Monthly lease cost: £656
- Income Tax Saved: £131.20 (20% of £656)
- National Insurance (NI) Saved: £13.12 (2% of £656)
- Benefit In Kind (BIK) Paid @ 2%: £66.08 (2% of £39,645 ÷ 12)
- Employer’s National Insurance (NI) on BiK: £9.12 (13.8% of £66.08)
Net monthly cost: £587.88 (£656 – £131.20 – £13.12 + £66.08 + £9.12)
Nissan Salary Sacrifice Examples at a 40% tax rate
| Nissan Model | P11D Price | Monthly Lease Cost | Income Tax Saved (40% band) | NI Saved (12%) | BIK Paid @ 2% | Employer's NI on BiK (13.8%) | Net Cost (40% band) |
|---|---|---|---|---|---|---|---|
| Nissan LEAF | £28,995 | £405 | £162 | £8.10 | £48.32 | £6.67 | £289.89 |
| Nissan Ariya | £39,645 | £656 | £262.40 | £13.12 | £66.08 | £9.12 | £455.68 |
Nissan LEAF Salary Sacrifice example @ 40% tax rate
- P11D list price: £28,995
- Monthly lease cost: £405
- Income Tax Saved: £162 (40% of £405)
- National Insurance (NI) Saved: £8.10 (2% of £405)
- Benefit In Kind (BIK) Paid @ 2%: £48.32 (2% of £28,995 ÷ 12)
- Employer’s National Insurance (NI) on BiK: £6.67 (13.8% of £48.32)
Net monthly cost: £289.89 (£405 – £162 – £8.10 + £48.32 + £6.67)
Nissan Ariya Salary Sacrifice example @ 40% tax rate
- P11D list price: £39,645
- Monthly lease cost: £656
- Income Tax Saved: £262.40 (40% of £656)
- National Insurance (NI) Saved: £13.12 (2% of £656)
- Benefit In Kind (BIK) Paid @ 2%: £66.08 (2% of £39,645 ÷ 12)
- Employer’s National Insurance (NI) on BiK: £9.12 (13.8% of £66.08)
Net monthly cost: £455.68 (£656 – £262.40 – £13.12 + £66.08 + £9.12)
Nissan Salary Sacrifice Examples at a 45% tax rate
| Nissan Model | P11D Price | Monthly Lease Cost | Income Tax Saved (45% band) | NI Saved (12%) | BIK Paid @ 2% | Employer's NI on BiK (13.8%) | Net Cost (45% band) |
|---|---|---|---|---|---|---|---|
| Nissan LEAF | £28,995 | £405 | £182.25 | £8.10 | £48.32 | £6.67 | £269.64 |
| Nissan Ariya | £39,645 | £656 | £295.20 | £13.12 | £66.08 | £9.12 | £422.88 |
Nissan LEAF Salary Sacrifice example @ 45% tax rate
- P11D list price: £28,995
- Monthly lease cost: £405
- Income Tax Saved: £182.25 (45% of £405)
- National Insurance (NI) Saved: £8.10 (2% of £405)
- Benefit In Kind (BIK) Paid @ 2%: £48.32 (2% of £28,995 ÷ 12)
- Employer’s National Insurance (NI) on BiK: £6.67 (13.8% of £48.32)
Net monthly cost: £269.64 (£405 – £182.25 – £8.10 + £48.32 + £6.67)
Nissan Ariya Salary Sacrifice example @ 45% tax rate
- P11D list price: £39,645
- Monthly lease cost: £656
- Income Tax Saved: £295.20 (45% of £656)
- National Insurance (NI) Saved: £13.12 (2% of £656)
- Benefit In Kind (BIK) Paid @ 2%: £66.08 (2% of £39,645 ÷ 12)
- Employer’s National Insurance (NI) on BiK: £9.12 (13.8% of £66.08)
Net monthly cost: £422.88 (£656 – £295.20 – £13.12 + £66.08 + £9.12)
The final word on Nissan Salary Sacrifice schemes
As we’ve worked through the salary sacrifice figures for both the Nissan LEAF and the Nissan Ariya, we can see the benefits of salary sacrifice tax savings.
The Nissan LEAF, with its more modest P11D list price, offers a more accessible entry into salary sacrifice. The savings, especially in the higher tax brackets, make it an attractive option for many employees considering an EV.
The Nissan Ariya, while having a higher upfront cost, still also offers significant savings, especially for those in the 40% and 45% tax brackets.
The difference in net cost becomes bigger as we move up the tax brackets. Those in the higher tax brackets stand to benefit more which showcases the tax efficiency of salary sacrifice for higher earners.
It’s essential to understand that these figures offer an illustrative snapshot and individual circumstances will vary causing the net monthly salary sacrifice cost to vary. Seek advice if you are unsure of your own situation and are considering a Nissan salary sacrifice scheme.
- 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.
