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Cheap company cars for BIK tax that are not all-electric
All company car drivers want to keep their tax bill down but not all want an electric car. So here are 20 models that run on petrol but still have competitive BIK tax rates...
Choosing your next company car can be a tricky thing. It’s great that the business you work for is willing to offer you a shiny new vehicle, but at the same time His Majesty’s Revenue and Customs (HMRC) is going to want to charge you tax on it each month.
The obvious way to minimise your monthly benefit-in-kind (BIK) tax payment is to choose an electric car because taxation is based on a car’s CO2 emissions, and all-electric models emit precisely none of those so are subject to the lowest BIK rates.
But what if an electric vehicle simply doesn’t work for your daily life, such as if you regularly have to do long journeys and can’t spare the time needed to recharge? Then you’re forced to look at a vehicle that uses fossil fuels – but traditional petrols and diesels get hit with prohibitive tax bills.
If only there were a middle-ground nirvana... Well, there is, as this list of cheap non-electric company cars shows. You should have a look at plug-in hybrids (PHEVs).
PHEVs have conventional engines plus powerful electric motors and large batteries, and allow you to travel a decent distance on electric power alone, before seamlessly switching to petrol power. They let you carry out a vast part of your daily commute on battery power, with the fuel tank there as a back-up, and if you can charge up regularly, you’ll be quids in.
Interested? Well, here are the top 20 cheapest cars for BIK tax that are not all-electric...
The cheapest petrol company cars for BIK tax in 2025
1. MG HS 1.5T SE
What Car? rating 4/5
P11D price £29,080
Monthly BIK tax at 20% £29.08
Monthly BIK tax at 40% £58.17
The MG HS makes real sense as a PHEV. Not only does it offer great value but it also gives you a seriously competitive electric-only range of 75 miles – a figure we almost matched in the real world. It’s quiet in EV mode and barely any noisier when the engine starts. Better still, the interior feels genuinely classy, and there’s good space for everyone to get comfy. It’s a shame the ventilation controls are operated through the touchscreen though.
2. Volkswagen Golf 1.5 TSI eHybrid Match
What Car? rating 4/5
P11D price £36,255
Monthly BIK tax at 20% £36.25
Monthly BIK tax at 40% £72.50
The Golf PHEV makes a very strong case for itself because it takes everything that’s good about a standard Golf and adds a good 70-mile battery-only range on top. Finding a good driving position is easy, and the Golf offers all-day comfort, as well as a genuinely enjoyable driving experience. You’ll be sitting in an interior that feels fairly classy, and a facelift earlier this year has made some of the in-car tech easier to use.
3. Seat Leon FR 1.5 e-Hybrid
What Car? rating 5/5
P11D price £36,705
Monthly BIK tax at 20% £36.67
Monthly BIK tax at 40% £73.42
We’ve given the Seat Leon five stars because it genuinely excels in many areas. It makes each and every journey a joy because it’s good fun, and it has loads of passenger space, especially so in the back seat area. The 39-mile battery-only range is more than enough for most commutes, although the fact that the PHEV version's boot space is only 270 litres could be a problem if your family regularly carries a lot of stuff.
4. Cupra Leon 1.5 eHybrid V1
What Car? rating 3/5
P11D price £38,885
Monthly BIK tax at 20% £38.91
Monthly BIK tax at 40% £77.75
Think of the Cupra Leon as a Seat Leon wearing running spikes. And that regularly goes to the gym. It’s properly brisk, and feels like a bit of a hot hatch to drive. The Cupra also has a fantastic battery-only range of up to 80 miles, so you should be able to commute for a couple of days without ever sparking the engine into life. There’s good space inside for people, but less so their stuff because the boot is small. Still, if you need more space you could always choose the estate car version.
5. Audi A3 Sportback TFSIe Sport
What Car? rating 4/5
P11D price £39,125
Monthly BIK tax at 20% £39.17
Monthly BIK tax at 40% £78.25
The Audi A3 Sportback PHEV offers genuinely competitive running costs because it’s even pretty cheap each month on a PCP. It also handles extremely tidily indeed and has an interior ambience that puts many rivals’ to shame. The PHEV covers the 0-60mph dash in just 7.4 seconds, and can easily hit motorway speeds on battery power alone. Better still, it has an electric range of up to 88 miles, so you need rarely trouble the engine on a commute.
Read our Audi A3 review
6. Skoda Superb Estate 1.5 TSI iV SE Technology 204PS DSG
What Car? rating 4/5
P11D price £41,410
Monthly BIK tax at 20% £41.42
Monthly BIK tax at 40% £82.83
If there’s one thing the Skoda Superb Estate is big on, it’s being big. The interior is truly vast for five people, and the boot space is more than capable of carrying everything they see fit to bring along. This PHEV version can travel an official 83 miles using only its batteries, and of course it stacks up superbly well as a company, with monthly BIK bills of less than £42 for lower-rate taxpayers.
Read our Skoda Superb Estate review
7. Skoda Kodiaq 1.5 TSI iV SE 204PS
What Car? rating 4/5
P11D price £41,880
Monthly BiK tax at 20% £41.92
Monthly BiK tax at 40% £83.75
The Skoda Kodiaq is a car that fulfils two briefs exceptionally well – that of being a family SUV and that of being a company car. Interior space is generous, although the plug-in hybrid Kodiaq is not available as a seven-seater like other versions. The suspension offers a good blend of comfort and control, which means the Kodiaq handles neatly and is easy to drive, but it’s also comfortable when you’re on a longer journey – ideal for family and business trips.
8. Volkswagen Tiguan 1.5 TSI eHybrid Life
What Car? rating 4/5
P11D price £42,500
Monthly BIK tax at 20% £42.50
Monthly BIK tax at 40% £85
The VW Tiguan is the company’s biggest seller – and with good reason. It’s large and spacious, and it can easily accommodate a family of five. There are two PHEV models available, and the version we focus on here offers a battery-only range of 72 miles, which is still plenty. The Tiguan comes with loads of standard kit, including parking sensors fore and aft, a rearview camera, automatic LED headlights and a 10.3in digital driver’s display.
Rear our VW Tiguan review
9. Volkswagen Passat 1.5 TSI eHybrid Life
What Car? rating 5/5
P11D price £44,390
Monthly BIK tax at 20% £47.50
Monthly BIK tax at 40% £88.75
Yes, the world has gone SUV mad, but the Passat proves there’s still space for a good estate car. The Passat provides a classy and spacious interior with plenty of boot space for family or working-life detritus, and can travel up to 80 miles on a charge, before the engine kicks in unobtrusively. You’ll feel relaxed on any journey in the Passat because it provides a supple ride quality, and keeps wind and road noise to a minimum on longer trips.
10. Mazda MX-30 e-Skyactiv R-EV Prime Line
What Car? rating 4/5
P11D price £31,740
Monthly BIK tax at 20% £47.58
Monthly BIK tax at 40% £95.25
The Mazda MX-30 R-EV is different to most PHEVs because its minuscule petrol engine is merely designed to act as a generator for the batteries. It works – the MX-30 R-EV can travel up to 53 miles on battery power alone before the engine kicks in to keep everything moving. You’ll enjoy every one of those miles too, because the MX-30 is good fun to drive, while you’ll be sitting in a cool-looking interior. Just beware that getting to the rear seats is tricky and there isn’t much space when you do.
Read our Mazda MX-30 R-EV review
11. Kia Niro 1.6 GDi PHEV 2
What Car? rating 4/5
P11D price £35,180
Monthly BIK tax at 20% £52.75
Monthly BIK tax at 40% £105.50
The Kia Niro PHEV makes great sense if you’re a company car driver, because not only does it cost you as little as £52 per month in BIK tax but it can also travel up to 40 miles on electric power, meaning your fuel costs will be minimal. It’s also light and easy to drive, if not what you’d call exciting. There’s no real need to look beyond the entry-level 2 trim because it has a reversing camera, rear parking sensors, keyless entry and climate control.
Read our Kia Niro review
12. Toyota Prius Plug-in 2.0 VVT-I Design Auto
What Car? rating 4/5
P11D price £37,730
Monthly BIK tax at 20% £56.58
Monthly BIK tax at 40% £113.17
The latest Toyota Prius does something that no other Prius has managed – it looks properly stylish and desirable. It's only available as a plug-in hybrid that can travel up to 44 miles on battery power before the engine hums into life. Inside, it’s easy to get comfortable in the two front seats, but it’s a bit tricker in the back, where there’s plenty of leg room, but you might end up with a cricked neck. The boot is a fair size though, and higher-spec models come with an electric tailgate.
Read our Toyota Prius review
13. Toyota C-HR 2.0 VVT-I Design
What Car? rating 3/5
P11D price £39,175
Monthly BIK tax at 20% £58.75
Monthly BIK tax at 40% £117.50
It would be easy to dismiss the Toyota C-HR as all style and no substance, but that would be wrong. For a start, it’s punchy – the 220bhp output gives it nippy performance, on top of which it can travel 41 miles on a charge. However, for all the sharp, purposeful looks, its handling is a little vague. The interior looks suitably classy and stylish, too, and it’s roomy enough up front. Those in the rear get a rougher deal, though, and there isn’t a vast amount of boot space.
14. Hyundai Tucson Plug-in Hybrid 1.6T Advance
What Car? rating 4/5
P11D price £39,220
Monthly BIK tax at 20% £58.83
Monthly BIK tax at 40% £117.67
The Hyundai Tucson has a vast amount going for it, both as day-to-day family transport and as a company car. To kick off, the feelgood factor sets in as soon as you open the door, because everything feels very well made. There’s plenty of space in the cabin, too, no matter where you’re sitting, and you’ll be able to put most of your worldly goods in the boot. The Tucson has a competitive 43-mile electric-only range, after which the petrol engine goes about its job without causing a fuss.
Read our Hyundai Tucson review
15. Peugeot 3008 Plug-in Hybrid Allure
What Car? rating 3/5
P11D price £40,695
Monthly BIK tax at 20% £61.08
Monthly BIK tax at 40% £122.08
The Peugeot 3008 in entry-level Allure trim is the best option in the range if you want plenty of bells and whistles without shelling out too much each month. Its monthly BIK bill proves the point, as does standard equipment that includes LED headlights, keyless entry, a wireless phone-charging pad, privacy glass and dual-zone climate control. The boot space is vast, and there’s decent space for people of normal dimensions. And a battery range of up to 55 miles means you can go a decent distance in near-silence.
16. Mercedes A250e AMG Line Executive
What Car? rating 4/5
P11D price £41,000
Monthly BIK tax at 20% £61.50
Monthly BIK tax at 40% £123
You’re getting a Mercedes-Benz as a business car and you’re required to shell out just £61.50 each month in company car tax? People might be justified in suspecting you’ve got something over the fleet manager. But no, this A-Class really is that cheap as a company car, on top of which it can do a decent 53 miles on battery alone, and it has an interior that feels way more expensive than it actually is. If there’s a fly in the ointment, it’s that rear-seat space isn’t as generous as might be ideal.
Read our Mercedes A-Class review
17. Toyota RAV4 2.5 VVT-I Design
What Car? rating 4/5
P11D price £44,230
Monthly BIK tax at 20% £66.33
Monthly BIK tax at 40% £132.67
The Toyota RAV4 is an SUV that doesn’t act like an SUV. By which we mean, the plug-in hybrid powertrain endows it with the sort of emissions and economy figures that some small cars might envy. Better still, it has a reliability record that other cars can only envy. It can travel an official 46 miles on battery power, and when the engine kicks in, it has seriously sparkling performance. It’s roomy for everyone, as well as in the boot, but the interior style is a let-down.
Read our Toyota RAV4 review
18. BMW 330e Sport Auto
What Car? rating 5/5
P11D price £47,020
Monthly BIK tax at 20% £70.50
Monthly BIK tax at 40% £141.08
There are many reasons why the BMW 3 Series is a five-star car, not least its abilities in plug-in hybrid form. The 330e can travel a decent 62 miles on a charge before the engine kicks in, and every one of those miles will be a joy to drive. It’s also more spacious than many of its direct executive car rivals, including for luggage. Add in the facts that it has a class-leading infotainment system and you’ll pay just £70 each month in BIK tax, and it’s a winner.
Read our BMW 3 Series review
19. Suzuki Across 2.5 PHEV e-Four
What Car? rating 3/5
P11D price £49,514
Monthly BIK tax at 20% £74.25
Monthly BIK tax at 40% £148.58
The Suzuki Across has a twin in the shape of the Toyota RAV4 and everything that’s good about the Toyota applies here. It stacks up well as a company car because the plug-in hybrid powertrain gives it an all-electric range of up to 47 miles, and allows it to cover the 0-62mph dash in just six seconds. However, while the suspension is a bit firm for ultimate comfort, the interior makes up for it by being roomy and well appointed. It all feels well put together too, with classy materials.
Read our Suzuki Across review
10. Lexus NX450h+ (Premium)
What Car? rating 4/5
P11D price £50,080
Monthly BIK tax at 20% £75.08
Monthly BIK tax at 40% £150.25
Just think – you can have all the luxury and tech you’d expect in a Lexus and for just £75.08 per month in BIK tax. Not bad. The NX450h is nippy too, with 0-62mph in just 5.8 seconds, and it can travel up to 45 miles on battery power. As for handling, the NX is competent but not huge fun. Nevertheless, the interior is perfectly roomy, and there’s little in the class that can touch it for quality. And to top it all, it even recharges at a relatively brisk 6.6kW.
The cheapest company car you don't plug in at all
Toyota Aygo X 1.0 VVT-I Pure TSS
What Car? rating 4/5
P11D price £16,400
Monthly BiK tax at 20% £73.83
Monthly BiK tax at 40% £147.58
If you don’t want to have to plug in your car at all, there is an alternative that won’t cost a huge amount in the shape of the Toyota Aygo X. It’s seriously frugal to run, but because it’s a pure petrol car, it costs more in company car tax – roughly the equivalent of what you’d spend on, for example, a Suzuki Across. Still, if all you need from your business car is an urban runabout that looks funky and is easy to park, the tiny Toyota is a viable option.
Read more: The best PHEV company cars
Read more: The cheapest company cars in the UK
Read more company car advice
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