Take Home Pay
Take Home Pay
This NHS salary sacrifice calculator estimates take-home impact when you reduce taxable salary through an approved salary sacrifice arrangement in 2026/27. Enter current gross pay, sacrifice amount, tax band, National Insurance and whether NHS Pension is calculated on pre- or post-sacrifice pay under local Trust rules. Use it for cycle schemes, electronics or other Trust offerings (cars have a dedicated tool). Outputs show NI and tax saved versus lower pensionable pay risk so sacrifice decisions stay balanced against long-term NHS Pension accrual.
True net annual cost
£0
Figures use NHS Employers AfC 2026/27 scales, HMRC tax/NI/student loan rules and NHS Pension tiers from 1 April 2026. Estimate only — your payslip is authoritative.
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See exactly what an NHS salary sacrifice car costs you each month after Income Tax, National Insurance, Benefit-in-Kind tax, and pension deductions. Enter your NHS band, car details, and lease term below.
Required calculator outputs:
1 An NHS salary sacrifice car scheme lets employees lease a car from their gross salary, before Income Tax and National Insurance are deducted. The employee agrees to give up a fixed amount of gross pay each month. In return, their NHS Trust provides a brand-new, fully maintained car through an approved leasing provider.
The reduction in gross salary happens before tax and NI are calculated. This shrinks the employee's taxable income and NI-liable earnings immediately, creating a real monthly saving on every payslip. 8HMRC treats the car as a Benefit-in-Kind — a perk provided on top of salary — and taxes it accordingly. For electric vehicles, that BIK tax is exceptionally low.
12 NHS Fleet Solutions is the UK's original public sector salary sacrifice scheme, managed by Northumbria Healthcare. It allows eligible NHS, local authority, and academy staff to lease a brand-new, fully maintained car without a deposit, with costs deducted from gross pay, reducing Income Tax and National Insurance contributions. The package includes fully comprehensive insurance, road tax, breakdown cover, and tyres. 16 NHS Fleet Solutions is operated through Northumbria Healthcare NHS Foundation Trust and runs under a Crown Commercial Service (CCS) framework. Your Trust must have opted into this framework to offer the scheme. 16 Individual employees cannot join independently.
Other salary sacrifice car providers serving NHS Trusts include Tusker (CPC Drive), Octopus EV, and Loveelectric. The provider available to you depends entirely on which contract your NHS Trust has procured.
This calculator replicates the exact payroll logic that NHS Trusts use when processing a salary sacrifice car deduction. The following steps show precisely how each figure is produced.
Enter your NHS band and pay point. 20The table of Agenda for Change salaries shows the basic full-time annual salary for every band, from the entry step to the top of the band, for 2026/27 effective 1 April 2026. These are standard rates before London weighting, unsocial-hours enhancements, or pension deductions.
22 The 2026/27 Agenda for Change pay points are: Band 5 — £32,073 (entry), £34,592 (intermediate), £39,043 (top). Band 6 — £39,959 (entry), £42,170 (intermediate), £48,117 (top). Band 7 — £49,387 (entry), £51,932 (intermediate), £56,515 (top). 20 The 2026/27 figures reflect the 3.3% award applied from April 2026 and are the latest officially published scales.
The monthly lease cost is removed from gross salary before any Income Tax or National Insurance calculation. If the gross monthly sacrifice is £450, your annual gross is reduced by £5,400 for all tax and NI purposes. This is the engine of the saving — every pound sacrificed is a pound that escapes Income Tax and NI before they are applied.
BIK tax is calculated using this formula:
BIK tax = P11D value × BIK percentage × your income tax rate ÷ 12
5 The formula for calculating Benefit-in-Kind on a car is simple: multiply the P11D value of the vehicle by the BIK percentage, then by your tax band. 1 A 4% Benefit-in-Kind charge on a £35,000 EV in 2026/27 produces £1,400 of taxable benefit per year — about £280 in tax for a basic-rate employee, £560 for a higher-rate one. 1 The same £35,000 car at a 30% petrol BIK rate produces £10,500 of taxable benefit, costing £2,100 to £4,200 a year depending on tax band. That gap is what makes salary sacrifice arithmetic work for an EV and break for a petrol or diesel car.
When BIK is payrolled — the standard arrangement at most NHS Trusts — Income Tax is calculated on the original pre-sacrifice salary for BIK purposes, but National Insurance is calculated on the post-sacrifice salary. This means the employee saves NI on the sacrificed amount but does not save Income Tax on it through the sacrifice mechanism alone; the BIK charge covers the Income Tax element.
This distinction is critical. Most generic online salary sacrifice calculators wrongly assume both Income Tax AND National Insurance are saved in full. For NHS employees on payrolled BIK schemes, the primary saving is on NI, with pension contribution reduction as a secondary saving.
21 Pension contributions are based on actual annual pensionable pay, not simply on the Agenda for Change band. This means two staff members in the same band can pay different contribution rates if they sit in different salary ranges.
Salary sacrifice reduces pensionable pay. The NHS Pension Scheme (2015 CARE section) accrues benefits at 1/54th of pensionable earnings per year. A £5,400 annual sacrifice reduces pension accrual by exactly £100 per year of retirement income (£5,400 ÷ 54). Over a 36-month lease, that equals £300 less annual pension income in retirement before CPI revaluation.
NHS Pension contribution tiers for 2026/27 (England):
Pensionable Pay Band | Employee Contribution Rate |
Up to £13,246 | 5.2% |
£13,247 – £26,832 | 6.5% |
£26,833 – £32,692 | 8.3% |
£32,693 – £49,078 | 9.8% |
£49,079 – £62,924 | 10.7% |
£62,925 – £72,031 | 11.6% |
£72,032 – £110,831 | 12.5% |
Over £110,831 | 13.5% |
If salary sacrifice drops your pensionable pay across a tier boundary — for example from the 9.8% tier to the 8.3% tier — you save an additional amount each month in pension contributions. The calculator flags this and shows the exact saving in pounds. It also flags the corresponding reduction in future pension accrual so you can weigh the trade-off.
12 You cannot join if deductions push you below the National Minimum Wage. The National Living Wage for workers aged 21 and over is £12.21 per hour from April 2025. The calculator checks your post-sacrifice hourly rate automatically and displays a red warning if the sacrifice breaches this floor.
This check is particularly important for part-time Band 2, Band 3, and lower Band 4 employees whose hourly rate is closest to the legal minimum.
The true monthly cost of the car to the employee is:
Net monthly cost = Gross sacrifice − NI saving − pension saving + BIK tax charge
6 For most electric cars, the all-in monthly cost is still 30–60% lower than the equivalent personal lease, with insurance, maintenance, tyres, and breakdown cover bundled in.
7 For 2026/27, the BIK rate for fully electric cars is 4%, up from 3% in 2025/26, rising by 1 percentage point per year until 2028 under HMRC's published multi-year schedule. 3 The government has already published the trajectory for future years: 4% in 2026/27, 5% in 2027/28, 7% in 2028/29, and 9% in 2029/30. 3 Even at 9%, an EV on salary sacrifice will usually remain considerably cheaper than an equivalent petrol or diesel vehicle driven privately.
Tax Year | Pure Electric (0g/km) | PHEV (≤50g/km, 130+ mile EV range) | Petrol / Diesel (typical) |
2025/26 | 3% | 7% | 25–37% |
2026/27 | 4% | 8% | 26–37% |
2027/28 | 5% | 9% | 27–37% |
2028/29 | 7% | 10% | 28–37% |
2029/30 | 9% | 12% | 29–37% |
7 Where a car is provided under salary sacrifice or another Optional Remuneration Arrangement (OpRA), HMRC requires the BIK to be valued at the higher of the salary forgone or the standard BIK calculation. Ultra-low-emission vehicles (≤75g/km CO₂) are exempt from this rule and keep the standard BIK calculation, making electric cars particularly attractive under salary sacrifice.
This OpRA exemption is the reason salary sacrifice on electric cars retains its full tax efficiency. 7From 6 April 2028, BIK rates for plug-in hybrids will reset to align with internal combustion vehicles, removing the current favourable electric-range bands. Any NHS employee considering a PHEV lease starting after early 2026 should factor in the post-April-2028 rate increase for the tail end of a 36-month term.
19 Band 5 covers newly qualified professionals, including nurses and paramedics, with salaries from £29,984 to £36,483 in 2026/27.
This example uses the Band 5 entry pay point of £32,073.
Item | Without Sacrifice | With EV Salary Sacrifice |
Annual gross salary | £32,073 | £32,073 |
Monthly gross sacrifice | £0 | £380 |
Annual adjusted gross for NI | £32,073 | £27,513 |
Monthly NI saving (8% main rate) | — | ~£30.40 |
NHS Pension tier | 9.8% | 8.3% (tier drops) |
Monthly pension contribution saving | — | ~£29.20 |
Car P11D value | — | £32,000 |
BIK rate (pure EV, 2026/27) | — | 4% |
Annual BIK taxable value | — | £1,280 |
Monthly BIK tax (basic rate 20%) | — | £21.33 |
Net monthly car cost | — | £380 − £30.40 − £29.20 + £21.33 = £341.73 |
Equivalent personal lease (no inclusions) | — | ~£520–£580/month |
Monthly saving vs personal lease | — | ~£178–£238 |
The salary sacrifice package for £341.73/month includes fully comprehensive insurance, road tax, servicing, breakdown cover, and tyres. A personal lease at £520–£580/month includes none of these.
22 The Band 7 entry pay point for 2026/27 is £49,387.
Item | Value |
Annual gross salary | £49,387 |
Monthly gross sacrifice | £500 |
Annual adjusted gross for NI | £43,387 |
Monthly NI saving (8% main rate) | ~£40.00 |
NHS Pension tier | 10.7% (potentially drops to 9.8%) |
Monthly pension saving | ~£37.40 |
Car P11D value | £40,000 |
BIK rate (pure EV, 2026/27) | 4% |
Annual BIK taxable value | £1,600 |
Monthly BIK tax (basic rate 20%) | £26.67 |
Net monthly car cost | £500 − £40 − £37.40 + £26.67 = £449.27 |
Equivalent personal lease (no inclusions) | ~£650–£720/month |
Monthly saving vs personal lease | ~£200–£270 |
A Band 7 employee earning above £50,270 crosses into the higher-rate tax band (40%) on the portion above that threshold. 5The basic rate is 20% up to £50,270, and the higher rate is 40% from £50,271 to £125,140. The calculator applies marginal rate logic automatically — the BIK charge for higher-rate taxpayers rises to £53.33/month on this car, but the NI saving remains the same.
18 NHS Fleet Solutions is an integral part of Northumbria Healthcare NHS Foundation Trust and is therefore part of the public sector, giving it significant experience of the standards and public service values required. 18 It is the UK's original public sector salary sacrifice scheme, offering staff a new car of their choice on a two- or three-year lease. The scheme is HMRC-approved, requires no capital expenditure, and is administered by Fleet Solutions on the employer's behalf. 10 The scheme is especially aimed at NHS employees. Many Trusts use it as part of their staff benefits package, helping workers access vehicles without using traditional personal finance. The service also works with other public sector organisations, which may include councils, police forces, universities, schools, academies, and primary care bodies. 16 NHS Fleet Solutions operates under a CCS framework, which means your Trust must have chosen to sign up before you can access the scheme. Individual employees cannot join independently. 16 Search your Trust intranet for 'car scheme' or 'salary sacrifice' on the staff benefits page, or ask your HR or payroll team directly whether your Trust offers a salary sacrifice car benefit.
11 The scheme enables you to drive a brand-new car of your choice with all the main running costs — servicing and maintenance, insurance, road tax, and breakdown and recovery — included in a fixed monthly amount paid through salary sacrifice. 12 The fully comprehensive insurance included in your monthly deduction usually allows for additional named drivers, such as a spouse or domestic partner.
NHS Fleet Solutions updates its vehicle pricing based on manufacturer list prices, residual values, and mileage contracts. Exact monthly figures change regularly. The following ranges reflect typical indicative gross monthly costs for a 36-month, 8,000-mile-per-year contract on popular electric models available through public sector salary sacrifice schemes in mid-2026.
Honesty disclosure: These are estimated ranges based on publicly visible public sector salary sacrifice pricing as of mid-2026. For exact figures, log in to your Trust's NHS Fleet Solutions portal or contact your HR team. I do not have access to live NHS Fleet Solutions pricing data.
Vehicle | Type | Indicative Gross Monthly Cost (36-month / 8,000 miles) |
MG4 EV SE | Battery Electric | £330–£400 |
Vauxhall Corsa Electric | Battery Electric | £310–£370 |
Volkswagen ID.3 | Battery Electric | £390–£460 |
Hyundai Kona Electric | Battery Electric | £400–£480 |
Kia EV6 | Battery Electric | £470–£550 |
Tesla Model 3 | Battery Electric | £490–£580 |
BMW iX1 | Battery Electric | £530–£630 |
These gross monthly figures are the amounts deducted from salary before tax. The net cost to the employee — what it genuinely costs in reduced take-home pay — is lower, because the sacrifice generates NI savings and, in many cases, pension contribution savings. Use the calculator at the top of this page to see your exact personal net cost based on your band and chosen car.
Yes. This is the most significant trade-off to understand before joining any scheme.
12 Because salary sacrifice lowers your gross pay, it reduces your pensionable pay. This means both you and your employer will pay slightly less into your pension.
The NHS Pension Scheme (2015 CARE section) builds up 1/54th of pensionable earnings as a pension credit each year. A £5,400 annual sacrifice reduces that year's accrual by £100/year of retirement income. Over a 36-month lease, the total reduction is £300/year of retirement income (before CPI revaluation uplifts that figure each year until you draw your pension).
Whether this trade-off is worthwhile depends on three factors:
The calculator quantifies both figures so you can make a direct comparison before committing.
10 Eligibility depends on whether the employer has joined the scheme and whether the employee meets the required criteria. Not every employee will automatically qualify. Factors such as salary level, contract type, employment status, and employer approval may affect eligibility.
Standard eligibility requirements across most NHS salary sacrifice car schemes:
15 No deposit or credit checks are needed for drivers under most schemes.
Part-time NHS staff can participate, but the lower gross salary restricts the maximum affordable lease before hitting the National Minimum Wage floor. The calculator checks this automatically.
Factor | NHS Salary Sacrifice | Personal Contract Hire | Bank Loan / Own Car |
Payment source | Gross salary (pre-tax) | Net salary (post-tax) | Net salary (post-tax) |
Insurance included | Yes | No | No |
Servicing and maintenance | Yes | No | Owner pays |
Road tax | Yes | No | Owner pays |
Breakdown cover | Yes | No | Separate policy |
Deposit required | No | Typically 3–6 months | Varies |
BIK tax payable | Yes (4% for EVs 2026/27) | No | No |
Effect on pensionable pay | Reduces it | None | None |
Ownership at end | No — car returned | No — car returned | Yes |
Mortgage affordability impact | Reduces gross salary on paper | No impact on gross | Loan visible on credit file |
Typical net monthly cost (£35,000 EV) | ~£320–£370 | ~£530–£600 | ~£500–£570 + insurance + tax + servicing |
1 Because the lease cost is taken from pay before Income Tax and National Insurance are calculated, the overall tax bill drops — and on a fully electric car, where BIK tax sits at just 4% for the 2026/27 tax year, the combined saving can reach 20–50% versus leasing privately.
No. 7A company car provided under a salary sacrifice or optional remuneration arrangement (OpRA) is subject to separate HMRC valuation rules, and the taxable value may be based on the higher of the amount forgone and the standard BIK calculation.
For a petrol or diesel car, the salary forgone is almost always higher than the standard BIK value. The result: the entire tax advantage of salary sacrifice is eliminated. 7Ultra-low-emission vehicles (≤75g/km CO₂) are exempt from this rule and keep the standard BIK calculation — which is exactly why electric cars remain the only vehicle type where NHS salary sacrifice still delivers meaningful monthly savings.
1 In 2026/27, the scheme works best for fully electric cars (4% BIK) and qualifying plug-in hybrids (6–20% BIK at ≤75g/km CO₂). 7 From 6 April 2028, BIK rates for plug-in hybrids will reset to align with internal combustion vehicles, removing the current favourable electric-range bands. Any NHS employee starting a 36-month PHEV lease in 2026 will see rising BIK costs during the final year of their contract.
The net monthly cost depends on your NHS band, the car's P11D value, and the BIK rate. 6The total cost to the employee is the gross sacrifice minus tax and NI saved, plus BIK. For most electric cars, the all-in monthly cost is still 30–60% lower than the equivalent personal lease, with insurance, maintenance, tyres, and breakdown cover bundled in. Use the calculator at the top of this page to see your personal figure.
8 The BIK rate for electric cars through salary sacrifice is 4% in 2026/27. Compared to 26–37% for most petrol and diesel cars, this is why EVs have become the most tax-efficient company car in the UK.
9 HMRC has confirmed BIK rates for electric vehicles through to 2029/30, increasing gradually from 3% in 2025/26 to 9% by 2029/30. 6 A longer lease of 36 or 48 months spreads the rising rates but also means you keep using a tax-efficient EV through the highest savings years.
Yes. Salary sacrifice reduces your contractual gross salary on paper. Mortgage lenders use gross salary to assess affordability. Some lenders accept a letter from your NHS Trust confirming your pre-sacrifice salary, but others use the reduced figure. Confirm your lender's policy before signing any sacrifice agreement.
12 Early termination fees apply if you leave the public sector or your Trust early. 12 If you move to another NHS Trust, you can sometimes transfer the lease, provided your new employer is registered with the scheme. 12 The fee varies based on how far into the contract you are and your specific Trust's policy. It is designed to cover the financial shortfall of ending a two- or three-year lease early.
12 Your salary sacrifice deductions can impact your Statutory Maternity Pay calculations. If your pay drops during maternity leave, you may need to switch to paying for the car via a net standing order to stay above minimum wage limits. Confirm the exact arrangement with your Trust's HR team before your maternity leave begins.
No. Student loan repayments under Plans 1, 2, 4, 5, and Postgraduate are calculated on pre-sacrifice gross salary. HMRC uses a reference pay figure — the original gross before sacrifice — for student loan threshold calculations. Salary sacrifice does not reduce student loan repayment obligations.
The P11D value is the manufacturer's published list price of the car including VAT, delivery charges, and factory-fitted optional extras. It excludes the first year's Vehicle Excise Duty and the registration fee. 8BIK tax is calculated using the car's P11D list price and its CO₂ emissions. The P11D value does not change based on any discount your employer negotiated — it is always the full manufacturer list price.
12 The fully comprehensive insurance included in your monthly deduction usually allows for additional named drivers, such as a spouse or domestic partner. Confirm the specific terms with your scheme provider before assuming additional drivers are covered at no extra cost.
10 NHS Fleet Solutions is linked with Northumbria Healthcare NHS Foundation Trust and is part of the public sector. Its surplus income supports NHS services, which makes it different from commercial leasing providers that operate primarily for private profit. 16 CPC Drive (Tusker) is another provider you may encounter, depending on your Trust. Both provide salary sacrifice car schemes with similar packaged benefits. The difference lies in vehicle availability, pricing, and which provider your specific Trust has contracted with.
Your payslip will show:
Part-time NHS staff can participate. The only restriction is the National Minimum Wage floor: 10staff should ensure that taking part does not reduce their salary below required thresholds. For part-time Band 2 and Band 3 staff whose gross hourly rate sits close to the National Living Wage, the affordable sacrifice amount is limited. The calculator checks your post-sacrifice hourly rate automatically.
OpRA is the HMRC rule introduced in April 2017 that removed the Income Tax and NI advantage from most salary sacrifice arrangements — including cars. 7HMRC requires the BIK to be valued at the higher of the salary forgone or the standard BIK calculation. For petrol and diesel cars, this destroyed the salary sacrifice benefit entirely because the salary forgone is always greater than the BIK. 7Ultra-low-emission vehicles (≤75g/km CO₂) are exempt from this rule, which is why electric cars remain the only vehicles worth leasing through salary sacrifice.
Salary Sacrifice — A contractual arrangement where an employee gives up a portion of gross salary in exchange for a non-cash benefit (in this case, a leased car). The deduction occurs before Income Tax and NI are calculated.
Benefit-in-Kind (BIK) — A taxable perk provided by an employer on top of cash salary. 8BIK tax is the Income Tax you pay on non-cash perks your employer provides in addition to your salary. If your employer gives you something worth money that isn't cash, HMRC classes it as a taxable benefit.
P11D Value — The car's official manufacturer list price including VAT and factory-fitted options, excluding first-year VED and the registration fee. HMRC uses this figure as the base for BIK calculations.
OpRA (Optional Remuneration Arrangement) — HMRC rules effective April 2017 that cap salary sacrifice benefits for most assets. Electric and ultra-low-emission vehicles (≤75g/km CO₂) are exempt.
Pensionable Pay — The salary figure used to calculate NHS Pension contributions and future CARE pension accrual. Salary sacrifice reduces this figure.
National Minimum Wage — £12.21 per hour from April 2025 for workers aged 21 and over. Salary sacrifice must not reduce effective hourly pay below this threshold.
Payrolled BIK — The arrangement where the employer reports and collects BIK tax through PAYE payroll monthly rather than issuing a P11D form at year-end.
NHS Fleet Solutions — 13The leading salary sacrifice lease car scheme for the NHS and other public sector organisations. Operated by Northumbria Healthcare NHS Foundation Trust under a Crown Commercial Service (CCS) framework.
Agenda for Change (AfC) — The national NHS pay framework covering Bands 1–9. 20It covers more than one million staff — nurses, healthcare assistants, paramedics, physiotherapists, pharmacists, administrators, cleaners, scientists, and managers — everyone except doctors, dentists, and very senior managers.
ULEV (Ultra-Low Emission Vehicle) — A vehicle emitting ≤75g/km CO₂. ULEVs are exempt from OpRA restrictions and keep the standard BIK calculation under salary sacrifice.
CCS (Crown Commercial Service) — 17Think of CCS as the NHS's official buying club. They set up frameworks — pre-agreed deals for goods and services — so Trusts can buy what they need easily and at a fair price.