The best company cars you can get in the UK

Our pick RWD Monthly BIK tax at 20% £20 Monthly BIK tax at 40% £40

While the Model 3 has been on sale in the UK since 2019, Tesla has treated it to numerous upgrades over the years – both via remote software changes and more traditional methods, including a facelift in 2023.

Among other things, the latter addressed two of the Model 3’s initial weaknesses – build quality and refinement – helping to turn it into the best executive car around.

On the other hand, from day one it offered surprising practicality, a long range and was fast and enjoyable to drive. And, to this day, these things remain strengths of the car.

Like all Teslas, the Model 3 also gets preferential access to the brand’s widespread and reliable Supercharger network. And our Real Range tests have consistently shown that the Model 3 is one of the most efficient electric cars you can choose.

Add all of that to the lowly BIK tax rate that it attracts as an EV, and you’ve got the best company car available today.

Read our in-depth Tesla Model 3 review

Our pick Standard Range Air Monthly BIK tax at 20% £17 Monthly BIK tax at 40% £33

Fancy running an electric SUV rather than an electric saloon as your company car? Then the Kia EV3 is our top recommendation. But why?

Well, for starters, it’s an SUV that really does feel like one when you’re behind the wheel, because you sit in an upright position and noticeably farther from the road than in most rivals.

The range is good, too: even the smaller, Standard Range battery delivers 270 miles (officially), while the Long Range ups that figure to 375 miles. And instead of trying to defy physics, and make this tall car handle like a hot hatch, Kia has concentrated on ensuring it has a super-smooth ride.

A good-sized boot and a fairly roomy interior with an intuitive dashboard layout complete a superb all-round package.

Read our in-depth Kia EV3 review

Our pick 85 Edition Monthly BIK tax at 20% £19 Monthly BIK tax at 40% £39

A slightly bigger option than the EV3 is the Skoda Elroq, and this is reflected inside, where you get loads of space – both for passengers and luggage.

That interior also features a pleasing mix of soft-touch plastics and fabric trim. And while you don’t sit as high as you do in the EV3, the driver’s seat still offers excellent support and lines up perfectly with the steering wheel and pedals.

Driving dynamics are another strong suit of the car, with it striking a fine balance between comfort and control, and feeling nimble in town, thanks to a tight, 9.3-metre turning circle.

Our favourite version has an official range of 360 miles that adds to the Elroq’s credentials as a great way to cover big distances.

Read our in-depth Skoda Elroq review

Our pick 1.5T Plug-in Hybrid SE Monthly BIK tax at 20% £32 Monthly BIK tax at 40% £65

Not ready to go fully electric? Well, don’t worry because our reigning Plug-in Hybrid of the Year, the MG HS, is also a very affordable company car, thanks to its combination of attractive pricing, low CO2 emissions and a long electric range.

And don’t think it’s only capable of covering big distances on electric power in a laboratory. No, when we tested it in the real world, we were able to cover 74 miles before the petrol engine kicked in – just one less than the official figure.

Despite being cheap by plug-in hybrid SUV standards, the HS offers a smart, well equipped and spacious interior. And while many PHEVs don’t ride particularly well, due to their heavy batteries, the HS PHEV is actually more comfortable than its petrol counterpart.

Only MG’s poor reliability record is a concern; it was the worst performing brand in the 2025 What Car? Reliability Survey.

Read our in-depth MG HS review

Our pick 1.5 TSI eHybrid 204 Elegance Monthly BIK tax at 20% £48 Monthly BIK tax at 40% £95

Another car that’s seriously worth considering in PHEV form is the latest Volkswagen Passat.

Available only in estate form, it has a huge, 510-litre boot; by comparison, the Mercedes E300e Estate makes do with 460 litres and the smaller C300e Estate just 360 litres.

Ride comfort and refinement are similarly impressive, with the latter particularly good if you go for mid-spec Elegance trim or above, because then you get laminated side windows to cut wind noise to an absolute minimum.

There are actually two PHEV versions of the Passat available, both with impressive pure electric ranges. We’d be happy with the least-powerful, but if you upgrade to the 272bhp version, you'll be getting the quickest Passat on the market.

Read our in-depth Volkswagen Passat review

Our pick Comfort Range Techno Monthly BIK tax at 20% £14 Monthly BIK tax at 40% £27

Chances are it will be the looks of the new Renault 5 (R5) that first draw you to this small electric car. But the great news is it has loads of substance to go with the style.

It handles in a secure, confidence-inspiring way and treats occupants to a mostly composed and comfy ride.

What’s more, if you can step up from entry-level Evolution trim to mid-range Techno, the R5 gains a much more attractive interior with an excellent Google-based infotainment system that’s feature-packed and user-friendly.

Space in the back is a little tight, but even the tallest adults will be comfortable in the front, and the car’s dinky dimensions make it very nimble in town.

Read our in-depth Renault 5 review

Our pick xDrive60 M Sport Monthly BIK tax at 20% £47 Monthly BIK tax at 40% £93

You’ll need to be a high flyer to have the iX on your company car list. But if it is there, this incredibly luxurious electric SUV will cost you less than £100 per month in BIK tax.

Part of what makes it so luxurious is the interior, which is made from high-quality materials that are beautifully assembled.

BMW has also taken a commendably eco-minded approach, though; the wood is sustainably sourced, there’s recycled (but plush-feeling) plastic, and – if you wish – you can have fancy microfibre fabrics instead of leather.

The car’s high roof, flat floor and broad interior combine to give every occupant loads of space. And few cars are as quiet or cosseting, with the ride particularly good if you go for an iX with air suspension.

Read our in-depth BMW iX review

Our pick E300e AMG Line Premium Monthly BIK tax at 20% £106 Monthly BIK tax at 40% £213

In generously equipped AMG Line Premium trim, the battery of the latest E300e plug-in hybrid can officially take you 70 miles on a full charge, so you’ll be able to complete many journeys without burning any petrol at all.

Okay, that’s only five miles up on the BMW 530e M Sport, but it’s enough to drop the E300e into the 6% BIK tax bracket, whereas the 530e is taxed at 9%.

Despite its AMG badging and sporty appearance, the E300e also gives gives you the sort of pillowy soft ride that Mercedes used to be famous for.

Meanwhile, when the engine and electric motor are working together, performance is seriously lively.

Read our in-depth Mercedes E-Class review

Our pick 59kWh e-boost 230 V1 Monthly BIK tax at 20% £18 Monthly BIK tax at 40% £36

Under the skin, the Born is closely related to the Volkswagen ID 3. However it’s the former that gets the nod from us, because it’s smarter and plusher inside, as well as more fun to drive.

The Born feels keener to turn in to corners, plus it’s endowed with plenty of grip and neat body control.

Then there’s the sensible stuff; the interior is spacious enough to keep four six-footers happy, and we managed to squeeze six carry-on suitcases into the boot, whereas the ID 3’s could take only five.

Some rivals have better infotainment systems, and the Born’s touch-sensitive climate controls are horribly fiddly. But if you can put up with those things, it’s definitely worth considering.

Read our in-depth Cupra Born review

Our pick 330e M Sport Monthly BIK tax at 20% £73 Monthly BIK tax at 40% £145

The 3 Series has long been a very popular company car choice. And it still makes plenty of sense today if you go for the 330e plug-in hybrid version.

True, it can't go quite as far on electricity alone as a PHEV Mercedes C-Class, and the 330e will cost you more in BIK tax as a result. However, there are plenty of compensations.

In the words of What Car?'s road testers, the 3 Series is “brilliant fun to drive”. Plus, it has a comfortable and classy interior that’s fitted with the most user-friendly infotainment system around.

As a bonus, your tax bills will still be much lower than they would be with petrol and diesel alternatives.

Read our in-depth BMW 3 Series review

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