Best Volvos for company car drivers 2023

Looking to replace your company car and have your heart set on a Volvo? Well, these are the best options from the Swedish brand...

Volvo XC40 P8 Recharge 2021 front

Few brands have embraced electrification with as much enthusiasm as Volvo. In a short space of time, it has rapidly introduced mild hybrids, plug-in hybrids and fully electric cars to its range.

That stands Volvo in good stead for company car drivers. After all, if you want to minimise your benefit-in-kind (BIK) tax bill, a car with some form of electrification is the way to go. Fully electric vehicles attract the lowest tax bills, but a plug-in hybrid is the next best thing, and potentially make a more practical choice depending on the type of journeys you do.

It's not just that the best Volvo models make sound financial sense, either. There are some excellent cars in the Swedish manufacturer's range whatever criteria you apply, but the brand scores most highly with its SUVs and estates.

Struggling to choose between them? Well, these are our five top picks from the Volvo line-up for company car drivers. In each case we've chosen our favourite model from within each range for business users, and calculated the monthly tax bill for a 40% taxpayer. If you pay tax at 20%, just cut the benefit-in-kind (BIK) figure in half.

Once you've found your ideal Volvo company car, follow the links to read our full reviews, or see the latest deals available through our free New Car Buying service.

5. Volvo XC90

Volvo XC90 T8

Best model 2.0 T8 Recharge Core | What Car? rating 4/5 | CO2 emissions 28g/km | P11D price £67,795 | Monthly BIK tax rate 2021/22 @40% £158.16

The XC90 really stands out in a field of strong plug-in hybrid rivals. Why? Well, it's the only plug-in hybrid SUV to offer seven seats, so you don't have to compromise on who comes along for the journey if you want to go green. With an official electric-only range of up to 31 miles, most commutes could be accomplished without the 2.0-litre engine ever firing into life.

Elsewhere, the XC90 impresses with its comfort and quality. It mixes smart materials with all the driver assistance technology and luxury features you could want.

As with all plug-in hybrids, you'll enjoy significantly lower company car tax bills with the T8 than you would with regular petrol or diesel-engined versions of the XC90, making it the one to go for here.

Read our full Volvo XC90 review >>

4. Volvo V60

Volvo V60

Best model 2.0 T6 Recharge Plus | What Car? rating 4/5 | CO2 emissions 18g/km | P11D price £49,010 | Monthly BIK tax rate 2021/22 @40% £130.69

Recent upgrades to the V60 Recharge plug-in hybrid have made a good car even better. An uprated battery has lifted the electric-only range to 54 miles in official tests, and going further on a charge means a lower BIK bill.

The updated T6 Recharge now emits just 18g/km, putting the car in the 8% BIK band. That means a monthly tax bill of just over £130.

It's not just the low tax cost that makes this V60 so appealing, though. The T6 Recharge is very quiet when running on electric power alone, but delivers punchy performance when the petrol engine joins in. The interior is understated and stylish (as you'd expect from Volvo), and the boot space is just as generous as with any other V60 – something you can't always say of plug-in hybrid models, which often sacrifice boot space to accommodate a battery pack.

Read our full Volvo V60 review >>

3. Volvo XC40

Volvo XC40 2022 front cornering

Best model Recharge T4 Plus (Dark Theme) | What Car? rating 5/5 | CO2 emissions 48g/km | P11D price £42,780 | Monthly BIK tax rate 2021/22 @40% £199.64

This former What Car? Car of the Year is our current Family SUV of the Year and is a hugely appealing company car too. This version can't match the incredibly low tax bill of the Recharge Electric (below), but it's within reach of many more contract hire budgets than its battery-powered counterpart. 

As a plug-in hybrid, the Recharge T4 will officially go 28 miles on electric power alone. In our independent tests, it achieved 21 miles – enough for many daily commutes to be completed fossil-fuel free.

Performance is lively when petrol and electric power combine, and the 0-60mph sprint took just 7.5sec in our test. An unflustered ride, excellent seats and a sound driving position make the XC40 supremely comfortable, whether heading to the office or covering long distances.

Read our full Volvo XC40 review >>

2. Volvo C40 Recharge

Volvo C40 Recharge 2022 front right tracking

Best model Twin Pro | What Car? rating 4/5 | CO2 emissions 0g/km | P11D price £57,345 | Monthly BIK tax rate 2021/22 @40% £19.12

The new C40 Recharge may be pricey and less practical than the XC40 Recharge Electric, but it's hard to argue with a luxurious and desirable car that has such a tiny BIK bill.

Drivers will enjoy the compelling mix of refinement and performance that's the hallmark of the finest electric cars. Whether you waft along or surge from 0-62mph in 4.7sec you'll be travelling in serene quiet. Aerodynamics help the C40 Recharge go further on a charge than the similar XC40 Recharge Electric, with a commendable official range of up to 273 miles. 

Rear headroom is quite tight, and luggage space could be more generous, but if either criticism puts you off, consider the XC40 Recharge instead.

Read our full Volvo C40 review >>

1. Volvo XC40 Recharge Electric

Volvo XC40 Recharge Pure Electric 2021 front tracking

Best model Twin Plus | What Car? rating 4/5 | CO2 emissions 0g/km | P11D price £55,755 | Monthly BIK tax rate 2021/22 @40% £18.59

Take everything that's great about the C40 Recharge, but make it more practical and slightly cheaper, and you have the XC40 Recharge Electric. The only downside to choosing the XC40 over the C40 is the shorter range of 259 rather than 273 miles.

Otherwise there's lots to like about Volvo's pure-electric XC40. The interior is stunning, with a clean and minimal design and top-notch build quality. The fiddly infotainment system lets the side down, but overall it's still great.

The electric version of the XC40 is a lot heavier than other models in the range, which you can feel if you change direction in a hurry. The ride is mostly smooth and settled, although you feel sharp bumps more than you would in the regular XC40.

Tax bills are incredibly low too. Even when the tax banding doubles for the 2022/23 tax year, the Recharge Electric will remain an absolute steal for business drivers, and that's why it's our favourite here.

Read our full Volvo XC40 Recharge review >>

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