MG5 EV salary sacrifice: the run-out estate, what next?

MG5 EV salary sacrifice has quietly turned into a run-out story, and most of the sal-sac calculators still pretending otherwise are out of date. Two things changed in 2026: MG withdrew the MG5 EV estate from UK sale, with Auto Express and Autocar both reporting the MGS5 EV SUV taking its slot in the range; and from 6 April 2026 the zero-emission company-car benefit-in-kind rate rose to 4 per cent for the 2026/27 tax year, per gov.uk, not the 3 per cent some calculators still show. The MG5 was Britain’s only mainstream all-electric estate, the obvious salary-sacrifice pick for anyone who wanted a proper boot rather than yet another SUV, but it has now come off sale. So the honest 2026 guide is not how to order one new, it is how the numbers work on a run-out or used car, and crucially what to lease instead if you have lost your electric estate. I run the benefit-in-kind sums on the correct 2026/27 rate and give you the next move.

MG5 EV salary sacrifice: a run-out story now

The reason this matters is that a lot of salary-sacrifice aggregators and lease sites still list the MG5 as if you can order one new, and some still quote the old 3 per cent benefit-in-kind rate. Both are wrong for 2026. The MG5 has been withdrawn from the UK range, so a new-car salary-sacrifice order is no longer the live option it was, and the company-car tax on any electric car this year is calculated at 4 per cent, rising again in the years after. If you see an MG5 sal-sac quote, treat it with suspicion: check whether the car is actually available and whether the tax figure uses the current rate. The good news is that the salary-sacrifice mechanism still works beautifully on an electric car, the question is just which electric car, and our guide to the Kia Niro EV sal-sac maths shows the same logic on a car you can still get.

Why the only electric estate mattered

It is worth being clear about what the market has lost, because it explains why people still search for the MG5. While almost every affordable EV became a crossover or SUV, the MG5 stayed an estate, with a long, low, square boot of 464 litres that opened up to 1,456 litres with the seats down. For dog owners, cyclists, tradespeople and anyone who simply prefers a wagon to a high-riding SUV, that made it close to unique at the price, and it did so while qualifying for the same low salary-sacrifice tax as any other EV. Nothing has stepped straight into that exact niche, which is the real problem for a boot-space buyer: the replacement options are good cars, but they are not estates. Our round-up of estate cars worth ordering shows how thin the segment has become.

The salary-sacrifice maths on a run-out MG5

Take the benefit-in-kind charge, the part you can calculate cleanly. The MG5 listed in the high-£20,000s to low-£30,000s, so on a P11D of around £28,000 the 4 per cent rate gives a taxable benefit of roughly £1,120 for 2026/27, per the gov.uk company-car tax rules. A basic-rate taxpayer pays 20 per cent of that, about £19 a month, and a higher-rate taxpayer pays around £37 a month. Treat those as a tax illustration based on the 2026/27 rate, not a finance offer: your exact figure depends on the car’s P11D and your marginal tax band. That is the cost of the perk, and it is small precisely because the EV rate is so low. Against it you set the income tax and National Insurance you save on the salary you sacrifice for the lease, which on a car at this price is far larger. I have deliberately not quoted a single gross lease figure, because it depends entirely on your scheme provider, the term and the mileage, and some of the figures circulating for the MG5 look wildly out of step with a car of this price. Get a real quote, add the £19 to £37 monthly benefit charge, and that is your true net cost.

What to lease instead: MGS5 EV or MG4

If you wanted an MG5 on salary sacrifice, the two natural replacements are both still MGs. The MGS5 EV is the SUV that has taken the MG5’s slot in the range: it gives up the low, square estate boot for a taller crossover body, but it keeps the value-for-money pitch and the low EV tax, and for many former MG5 shoppers it will be the path of least resistance. The MG4 is the hatchback alternative, cheaper and sharper to drive, and the better pick if you do not actually need maximum load space and would rather save money. Neither is an estate, so if a flat, long boot is non-negotiable you may have to look outside MG, at a more expensive premium estate, and accept a higher lease. For most people, though, the honest advice is to lease an MGS5 EV or MG4 on salary sacrifice now rather than chase a discontinued car, and our look at the BYD Dolphin and the Peugeot e-208 sal-sac case widen the shortlist.

The MG4 is the one I would point most cost-focused buyers towards. It is cheaper than the MGS5 EV, noticeably better to drive, and still carries the same low salary-sacrifice tax, so the monthly works out lighter for a household that does not need maximum load space. The compromise is a conventional hatchback boot rather than the MG5’s long estate floor, but for many former MG5 shoppers that is a price worth paying for the lower cost and the sharper car.

Used MG5 as a cash or used buy

If it is specifically the estate body you want, the used market is now where the MG5 lives. Because salary sacrifice generally needs a new car through an employer scheme, a used MG5 is usually a cash or personal-finance purchase rather than a sal-sac one, so the tax advantage does not apply, but you do get the only affordable electric estate at a used price. Buy on the usual EV checklist: ask for a battery state-of-health readout, check the charging history and that both cables are present, and confirm the software and infotainment behave. Values have settled as the used-EV market recovered through 2026, so a clean MG5 can be a sensible buy for a boot-space household that has charging at home. Just go in knowing it is a discontinued model, which can affect future parts and resale, and price that risk in.

Where to check before you commit

If you are set on salary sacrifice, start with your employer: confirm the scheme provider and which cars are on the list, since the MG5 may simply no longer be orderable. Ask for a written quote on the MGS5 EV or MG4 showing the gross monthly sacrifice, term and mileage, and check the benefit-in-kind rate yourself against the current gov.uk guidance rather than trusting a calculator that may still show 3 per cent. If you are buying a used MG5 outright instead, get an independent battery health check and a history check, and compare a personal contract hire quote so you know whether buying or leasing makes more sense for your mileage. Whatever you choose, do not pay over the odds chasing a car the manufacturer has stopped making when a current model gives you the same low EV tax and a warranty.

What I’d actually sign for

The honest position on MG5 EV salary sacrifice in 2026 is that the moment has largely passed for a new-car deal, and the smart move is to adjust rather than mourn. If you genuinely need the estate body, buy a clean used MG5 with a verified battery and accept it is a cash purchase without the tax break; the only affordable electric wagon is worth a small premium to the right household. But if what you really wanted was a cheap electric car on a low salary-sacrifice tax, stop chasing the discontinued estate and lease an MGS5 EV or an MG4 now, on the correct 4 per cent benefit-in-kind rate for 2026/27, with a full warranty and current support. I would not pay a stale-calculator price for a car you may not even be able to order, and I would always check the tax figure is this year’s, not last year’s. The MG5 was a quiet hero; the sensible response to its exit is a current MG, not a wild-goose chase.