Company cars remain one of the most valued employee benefits, offering convenience, flexibility, and potential tax advantages. However, choosing the right vehicle can be challenging, as there are several factors to weigh up, including Benefit-in-Kind (BIK) costs, emissions, comfort, and everyday practicality.
If you are unfamiliar with Benefit-in-Kind, it refers to the tax employees pay on non-cash benefits provided by their employer, such as the use of a company car for personal journeys. The BIK rate is determined by the car’s value, its CO₂ emissions, and the driver’s income tax band. In simple terms, vehicles with higher emissions attract a higher BIK percentage, resulting in a larger tax bill.
This tax structure is designed to encourage drivers to choose low-emission vehicles, particularly plug-in hybrids and fully electric models. The following list highlights some of the best company cars available, based on the 2025/2026 BIK rates.
BYD Seal
BIK: 3%
Range: 323–354 miles
Monthly Tax Cost: From £23 pm
The BYD Seal is a sleek and capable electric saloon from BYD, a Chinese car manufacturer that has recently overtaken Tesla in electric vehicle sales across Europe. Since its UK introduction in 2023, the Seal has quickly become a popular choice in the company car market, seen as a strong alternative to the Tesla Model 3.
Depending on the version you choose, the BYD Seal offers an impressive range between 323 and 354 miles, making it ideal for both daily commutes and longer journeys. With a 400-litre boot and an additional 53-litre storage compartment in the front, it provides plenty of space for everyday use.
Charging is equally convenient, as the Seal supports 150kW DC fast charging, allowing you to top up from 30% to 80% in just 26 minutes.
Inside, the Seal features a 15.6-inch rotating infotainment screen, which can switch between portrait and landscape modes for easier use when navigating or streaming media. The cabin is finished with quality materials and supportive, comfortable seats that make every journey enjoyable.
For those who appreciate performance, the Seal doesn’t disappoint. It can sprint from 0–62 mph in just 3.8 seconds, offering not only practicality and efficiency but also an exciting driving experience.
Renault 5
BIK: 3%
Range: 190 –248 miles
Monthly Tax Cost: From £11.50 pm
The new Renault 5 is launching in 2025, marking the return of one of Renault’s most recognisable models, now reimagined as a fully electric car. First shown as a concept in 2021, it combines classic design with modern electric performance. Priced from just under £23,000, it is one of the most affordable electric options for company car drivers.
The Renault 5 will be available with two battery choices: a 40kWh version offering around 190 miles of range, and a 52kWh version capable of up to 248 miles. Both are well suited for commuting and everyday use.
With a 0–62 mph time of 8.2 seconds, the Renault 5 delivers smooth and responsive performance, making it comfortable and confident on the road. It also offers 277 litres of boot space, providing useful practicality for daily journeys.
Overall, the Renault 5 stands out as a smart, efficient, and well-balanced electric car that is ideal for drivers looking for an affordable and reliable company vehicle.
Tesla Model Y
BIK: 3%
Range: 311–390 miles
Monthly Tax Cost: From £26 pm
The Tesla Model Y is one of the most popular electric SUVs on the market, known for its strong performance, impressive range, and practical interior space. The latest version has received updates to both its exterior and cabin, offering a more refined and aerodynamic design.
At the front, the Model Y now features a sleeker light bar paired with new main lighting units positioned below it. The indicators have been integrated neatly into the outer edges, giving the car a cleaner and more streamlined appearance. Tesla has also made improvements to reduce wind, road, and suspension noise by around 20 percent, providing a noticeably quieter ride compared with the previous model.
Inside, the Model Y retains its signature 15.4-inch central touchscreen, which controls most of the vehicle’s functions. A new 8-inch rear passenger screen has also been added, allowing passengers to manage climate settings and media with ease.
With a long electric range of up to 390 miles, rapid charging capability, and plenty of interior space, the Model Y remains a leading choice for company car drivers who value technology, comfort, and efficiency.
Porsche Taycan
BIK: 3%
Range: 336–422 miles
Monthly Tax Cost: From £44.10 pm
The Porsche Taycan is one of the top-performing electric cars available, offering exceptional power, luxury, and refinement. The Taycan delivers outstanding performance across the range, with top versions reaching 0–62 mph in just 2.2 seconds, while even the entry models achieve it in around 4.8 seconds.
Designed for drivers who want both performance and comfort, the Taycan combines advanced electric engineering with Porsche’s trademark driving precision. With adaptive air suspension and Porsche Active Suspension Management (PASM), it automatically adjusts to road conditions, delivering smooth and controlled handling even at higher speeds.
The Turbo GT version, priced from around £189,000, sits at the top of the range and offers a top speed of up to 190 mph. Despite its performance focus, the Taycan remains practical for longer journeys, offering a range between 336 and 422 miles, depending on the model.
For company car drivers, the Taycan’s 3% BIK rate keeps running costs surprisingly reasonable for such a high-value vehicle, with a monthly BIK tax of around £189 for the top-spec model in the 40% tax bracket.
Fiat Grande Panda
BIK: 3%
Range: 199 miles
Monthly Tax Cost: From £10.50
The Fiat Grande Panda Electric is a compact and practical EV that combines clever design with excellent value for money. It’s built on a new platform and sized perfectly for city driving while still offering good space inside, including a 361-litre boot.
Inside, the layout is straightforward and user-friendly, designed to make everyday driving simple and comfortable.
With 111bhp and a 0–62 mph time of 11 seconds, the Grande Panda offers smooth and efficient performance for everyday driving. The ride is comfortable and stable, and the car’s size makes it easy to handle around town.
A range of up to 199 miles and 100kW rapid charging make it practical for both short trips and longer journeys, while its low running costs and affordable price make it one of the best-value electric company cars on the market.
Audi A3
BIK: 6%
Electric range: up to 88 miles
Monthly tax cost: From £39.13 pm
The Audi A3 plug-in hybrid is a practical and efficient option for company car drivers, offering a balanced mix of electric and petrol power. It provides the familiar comfort and refinement associated with Audi, while keeping running costs and emissions low.
With an electric range of up to 88 miles, it can cover most daily commutes using battery power alone. The 25.4kWh battery supports DC fast charging at up to 50kW, making recharging quicker and more convenient. Boot space is 280 litres, and the cabin features Audi’s virtual cockpit and a well-designed infotainment system that’s clear and easy to use.
Among current plug-in hybrids, the A3 offers one of the strongest overall ranges and efficiency figures, making it a well-rounded choice for business and fleet users.
Jaecoo 7
BIK: 9%
Electric Range: Up to 56 miles
Monthly Tax Cost: From £53 pm
The Jaecoo 7 is a new face on UK roads this year and it’s already turning heads. It’s a plug-in hybrid SUV that’s been called a budget-friendly Range Rover, mixing sharp looks with plenty of comfort and tech inside.
You get a seven-speed automatic gearbox and around 56 miles of electric-only range, which is great for short commutes or city runs. It still feels quick when you need it, doing 0–62mph in about 8 seconds.
Inside, it’s properly modern with a big 14.8-inch touchscreen, a 10.25-inch digital dash, and a head-up display. The cabin feels high-end for the price and there’s loads of kit even in the standard model.
Overall, the Jaecoo 7 feels like a smart pick if you want SUV space and luxury style without the luxury price tag.
Volkswagen Tiguan
BIK: 6%
Range: Up to 75 miles (plug-in hybrid)
Monthly Tax Cost: From £45 pm
The latest VW Tiguan is a strong all-rounder, a mid-size SUV that mixes comfort, tech, and everyday practicality. The new plug-in hybrid setup pairs a 1.5-litre petrol engine with an electric motor, giving you up to 75 miles of electric-only range on a single charge, which is among the best in its class.
Inside, it feels properly modern. You get a 12.9-inch infotainment touchscreen as standard, or you can upgrade to a larger 15-inch display with the higher trims. Everything is cleanly laid out and easy to use.
There is plenty of space, with 490 litres of boot capacity and a roomy cabin that makes it a great pick for families or long commutes. Smooth, quiet and efficient, the Tiguan remains one of the most balanced hybrid SUVs you can buy.
These are just a few of the top company car options currently available, and there are many more on the market to suit different needs and budgets.
If you are still deciding which vehicle or funding method works best for your business, it can help to compare schemes such as salary sacrifice, company car plans, and other business finance options.
Taking time to understand the costs, tax implications, and practical benefits of each approach will ensure you choose the most suitable option for your organisation.