Company cars hub Skoda sponsored strip - desktop

Best BMWs for company car tax 2021

Looking to replace your company car and got your heart set on a BMW? Well, these are the five cheapest options – and four of them have our maximum five-star rating...

BMW iX3 2021 front

BMWs have long been popular with company car drivers, but thanks to the firm’s rapidly expanding range of electrified models, they’ve never made more financial sense than they do today.

After all, the benefit-in-kind (BIK) tax bracket that a car falls into is based on its CO2 emissions and – if it’s a plug-in hybrid – how far it can go on electric power.

Here, then, we name the five cheapest BMWs for BIK tax; in each case we’ve included the P11D price and how much you’ll pay a month.

To read more about any of the cars, simply click on the link to go to our dedicated review.

5. BMW 5 Series

LT BMW 530e front cornering

Best model 530e M Sport Pro Pack | What Car? rating 5/5 | CO2 emissions 32g/km | P11D price £54,765 | Monthly BIK tax rate 2020/21 @40% £183

The 5 Series was our overall Car of the Year back in 2017, and in 530e plug-in hybrid form it remains the best luxury saloon you can buy. However, thanks to this model’s low CO2 emissions, it also makes a very cheap company car – especially considering the level of comfort, refinement and equipment you’re getting for your money.

BMW 3 Series 320d front

Best model 330e M Sport Pro Pack | What Car? rating 5/5 | CO2 emissions 34g/km | P11D price £44,580 | Monthly BIK tax rate 2020/21 @40% £143

Another plug-in hybrid saloon, and another car that’s the best in its class, the 330e is our reigning Executive Car of the Year. It’s huge fun to drive, yet surprisingly comfortable if you add the optional Pro Pack, which brings adaptive suspension. Meanwhile, the interior is beautifully finished and the infotainment system unmatched.

Read our full BMW 3 Series review >>

3. BMW X5

BMW X5 45e front cornering - 69-plate car

Best model xDrive45e M Sport | What Car? rating 5/5 | CO2 emissions 27g/km | P11D price £69,860 | Monthly BIK tax rate 2020/21 @40% £140

BMW is making a habit of producing outstanding plug-in hybrids, and this X5 SUV is no exception. It offers near-silent electric power for 54 miles, so sits in the lowly 6% BIK tax bracket. What’s more, it combines a superb ride and handling balance with an incredibly luxurious interior. The only downside is that, unlike other X5s, it isn’t available as a seven-seater.

Read our full BMW X5 review >>

=1. BMW i3

2018 BMW i3s review - price, specs and release date

Best model 120Ah | What Car? rating 2/5 | CO2 emissions 0g/km | P11D price £39,635 | Monthly BIK tax rate 2020/21 @40% £0

The appeal of the i3 is obvious: as a fully electric car it won’t cost you anything in BIK tax, plus it looks funky and different, and has a posh interior with a cracking infotainment system. However, there’s no escaping the fact that mainstream rivals, such as the Kia e-Niro, offer similar performance, much longer ranges between charges and vastly superior practicality.

BMW iX3 front

Best model Premier Edition | What Car? rating 5/5 | CO2 emissions 0g/km | P11D price £58,795 | Monthly BIK tax rate 2020/21 @40% £0

Like the i3, the iX3 is a pure electric, zero-emissions car. However, it’s vastly superior in almost every other respect, offering an official range of 279 miles, a fine ride and handling balance, and a practical as well as classy interior. In fact, we reckon it’s the best large electric SUV currently available.

Read our full BMW iX3 review >>

For all the latest reviews, advice and new car deals, sign up to the What Car? newsletter here

Quickly calculate your BIK bill with our company car tax calculator