The best small company cars you can get in the UK

If you work in the city or just want to keep costs as low as possible, a small company car can be an ideal choice. Here, we round up the best small fleet cars on the market...

Red Honda Jazz right driving

Not every fleet car driver needs a big car or SUV, so here we're picking out the 10 best models to go for if you want a small car as your company vehicle.

Our list includes small hatchbacks, city cars and small electric cars, so there are plenty of options to choose from.

One benefit of going small with your fleet car choice is that smaller models tend to do better for efficiency – and that's great news when it comes to company car tax. With that in mind, we tell you which version of each model will cost the least in benefit-in-kind (BIK) tax rate, and give the P11D price and the monthly BIK tax payment for a 20% and 40% taxpayer.

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We also give you our expert road testers' rating out of five stars. And don't forget, you can read more about each car by following the link to our dedicated review, and see how much we can save you through our free New Car Deals pages.

The best small cars for fleet drivers in the UK

1. Honda Jazz

Red Honda Jazz front cornering

What Car? rating 5/5
Cheapest version for BIK tax 1.5 i-MMD Hybrid Elegance
P11D price £26,165
Monthly BIK tax at 20% £109
Monthly BIK tax at 40% £218

The Jazz is one of the roomiest small cars you can get, and it's a great company car choice because it lets you combine practicality, comfort, hybrid efficiency and manageable dimensions. It has loads of head and leg room for rear passengers and clever seats that can be folded up so you can carry more luggage or shopping when you've already filled its boot.

Honda Jazz review

2. Dacia Sandero

Blue Dacia Sandero rear cornering

What Car? rating 4/5
Cheapest version for BIK tax 1.0 TCe Bi-Fuel Expression
P11D price £14,540
Monthly BIK tax at 20% £63
Monthly BIK tax at 40% £126

The Sandero is very good value, but it's not just a tempting price that helps it to score well here. It's also decent to drive, has an interior that is both roomy and comfortable and, in our recommended Comfort trim, comes loaded with kit, including keyless entry, parking sensors and a reversing camera.

Dacia Sandero review

3. Electric Fiat 500

Blue Electric Fiat 500 front cornering

What Car? rating 4/5
Cheapest version for BIK tax 70kW 24kWh
P11D price £28,140
Monthly BIK tax at 20% £9.42
Monthly BIK tax at 40% £18.75

If you live in the city and want a small and funky company car, the Electric Fiat 500 is a great choice. It has a decent range of close to 200 miles, is short enough that even the smallest parking spaces won't be off limits, and has ultra-light steering that makes manoeuvring around tight city streets a breeze.

Electric Fiat 500 review

4. Toyota Yaris

Red Toyota Yaris right driving

What Car? rating 4/5
Cheapest version for BIK tax 1.5 Hybrid Icon
P11D price £22,420
Monthly BIK tax at 20% £85.92
Monthly BIK tax at 40% £171.92

If you're looking to cut costs but don't want a fully electric car, a hybrid can be the next best thing. The Yaris can run for short distances without using any petrol, but even when its 1.5-litre engine is taking the strain, it remains very efficient. In fact, it's one of the most frugal car we've ever put through our Real MPG test with a combined figure of 59.9mpg.

Toyota Yaris review

5. Volkswagen Polo

Red VW Polo left static boot open

What Car? rating 4/5
Cheapest version for BIK tax 1.0 Life
P11D price £20,465
Monthly BIK tax at 20% £98.92
Monthly BIK tax at 40% £197.83

One of the great things about the Polo is that in many ways it feels just like a smaller VW Golf – and by that, we mean it has the kind of premium finish and grown-up driving style that you might expect from a larger and more expensive car.

VW Polo review

6. Peugeot 208

Peugeot 208 right static

What Car? rating 4/5
Cheapest version for BIK tax 1.2 PureTech Active
P11D price £20,135
Monthly BIK tax at 20% £90.58
Monthly BIK tax at 40% £181.17

Not only will the 208 help you to stand out in the office car park, but it's also very comfortable and is able to soak up lumps and bumps in the road far better than rivals that cost a lot more. The Puretech petrol engine pulls strongly from low down in the rev range, and the interior is smart and stylish.

Peugeot 208 review

7. Seat Ibiza

Red Seat Ibiza rear cornering

What Car? rating 4/5
Cheapest version for BIK tax 1.0 TSI 95 SE
P11D price £19,450
Monthly BIK tax at 20% £90.75
Monthly BIK tax at 40% £181.50

The Ibiza is a cracking all-rounder in the small car class. It offers a spacious interior that even a couple of taller passengers won't mind spending time in, plus a peppy 1.0-litre petrol engine and engaging handling that makes it fun to drive.

Seat Ibiza review

8. Ford Fiesta

Red Ford Fiesta front cornering

What Car? rating 4/5
Cheapest version for BIK tax 1.1 Trend
P11D price £19,085
Monthly BIK tax at 20% £92.25
Monthly BIK tax at 40% £184.50

If you're looking for a small car that also offers engaging handling and a peppy petrol engine, the Fiesta should fit the bill – although it's due to go off sale any time, so you'll have to be quick. Engine options include a mild hybrid, or you could go for the fiery Ford Fiesta ST hot hatchback version.

Ford Fiesta review

9. Peugeot e-208

Yellow Peugeot e-208 front left driving

What Car? rating 3/5
Cheapest version for BIK tax 100kW Active 50kWh
P11D price £31,145
Monthly BIK tax at 20% £10.42
Monthly BIK tax at 40% £20.75

The e-208 shares many of its attributes with the regular 208, but runs on batteries instead of petrol. It has an impressive official range of up to 217 miles between charges, and just like the non-electric 208, it's decent to drive and comes with plenty of kit.

Peugeot e-208 review

10. Renault Zoe

Blue Renault Zoe front left static

What Car? rating 3/5
Cheapest version for BIK tax 100kW Techno R135 50kWh
P11D price £29,940
Monthly BIK tax at 20% £10
Monthly BIK tax at 40% £20

If you're looking for value from a small electric car, the Zoe is a strong choice. It has a good official range of up to 239 miles between charges, and is practical enough for family trips, thanks to the relatively big boot. Bear in mind, though, that its Euro NCAP safety rating was a shocking zero stars.

Renault Zoe review

Read more: The best company cars in the UK

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