Salary Sacrifice Benefit in Kind (BiK) Tax Made Simple

What is Benefit in Kind tax?

Benefit in Kind (BiK) tax is a tax on non-cash perks or benefits provided by an employer to an employee, such as a company car, private healthcare, or accommodation.

These benefits are considered part of an employee’s taxable income and are subject to income tax and National Insurance. The amount of tax depends on the type of benefit, its value, and the employee’s income tax band.

Why BiK Makes Electric Cars More Affordable

With salary sacrifice, you lease a brand-new car before tax and National Insurance are deducted from your salary—saving you money each month. Since your employer provides this benefit, HMRC applies BiK tax, but here’s the great news: BiK rates for electric cars are incredibly low.

Electric Car BiK Rates:

• 3% in 2025/26

• 4% in 2026/27

• 5% in 2027/28

• 7% in 2028/29

• 9% in 2029/30

That’s far lower than the 37% rate applied to high-emission petrol and diesel cars, making electric vehicles the smart choice for both your wallet and the planet.

How BiK is Calculated

BiK tax is based on:

1. Your car’s P11D value (list price, VAT, and delivery fees)
2. Your car’s BiK tax rate (lower CO₂ = lower tax)
3. Your income tax band (higher earners pay more BiK tax)

You can calculate your yearly BiK using the following;

(Your car’s P11D value) x (Your car’s BiK tax rate) x (Your income tax band)

Need to know more about Salary Sacrifice Benefit in Kind?

Download Benefit in Kind Brochure

What’s Included in Salary Sacrifice?

A Jurni Salary Sacrifice insured lease covers:

• Fixed monthly rentals – for easy budgeting.
• Guaranteed maintenance – including servicing & MOTs.
• Breakdown Assistance – with a replacement vehicle for 48 hours.
• Tyre replacement – subject to fair wear and tear.
• Glass Damage Protection – with a small fixed charge for replacements.
• Accident Management & Total Loss Protection – for added peace of mind.

Start Driving Smarter

With Jurni Salary Sacrifice, you can drive a brand-new electric car for less, lower your tax bill, and reduce your carbon footprint—all in one hassle-free package.

Download the Full BiK Brochure for all the details and start saving today!

Download Brochure