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the-cheapest-company-cars-you-can-get-in-the-uk

Whether you're running a fleet or choosing your next company car, you'll want to keep a close eye on long-term costs – and that means choosing models that don't attract too much benefit-in-kind (BIK) tax.

To help you out, we've compiled a list of the 15 car models available in the UK that will land you with the lowest tax bill possible.

Slideshow story: please click the right-hand arrow above to continue, or simply scroll down if you’re reading on your mobile

The cheapest company cars you can get in the UK

As our&nbsp;<a href="https://www.whatcar.com/advice/owning/company-car-tax-guide/n9352">company car tax guide</a>&nbsp;explains, HMRC&nbsp;rewards drivers for picking models with no exhaust emissions with a rock-bottom BIK&nbsp;rate of 2% – and that means electric cars. For that reason, you won't find any petrols, diesels or even plug-in hybrids (<a href="https://www.whatcar.com/news/best-plug-in-hybrid-cars/n22743">PHEVs</a>) on this list.

What you will find is a run-down of new car models that you can drive for just a few pounds a month in BIK tax.

For each model, we give you the What Car? road testers' rating out of five stars, the name of the least expensive version, the P11D price and the monthly BIK tax for a 20% and 40% tax payer in 2023/24. There's also a link to our full review so you can read more about the car.

Hatchback

Vauxhall has an incredibly diverse range of cars on sale, a few of which stand out above the class average. Add in the fact that it still offers some of the largest Target Price discounts in the market (something it is trying, without huge success, to cut back on), and there are very good reasons to consider buying one of its better models.

However, you need to choose carefully, because it is also a brand in transition. It has a newish parent company – the same one that owns Citroën, DS and Peugeot. And while Vauxhall’s newer models tend to be competitive, some of the others feel dated; a quick check of our star ratings will reveal which is which.

Still, given the recent success of sister brands Citroën and especially Peugeot, each new launch should make its range more appealing to buyers.

VAUXHALL

CORSA

What Car? rating&nbsp;3/5 
Cheapest model&nbsp;100kW Design 
P11D price&nbsp;£32,390 
Monthly BIK tax at 20%&nbsp;£10.83 
Monthly BIK tax at 40%&nbsp;£21.58

There isn’t one aspect of the electric Corsa&nbsp;that makes it stand out from its rivals, but it’s there or thereabouts in every way that matters. It’s a pleasant car to drive, with the instant low-speed punch electrified models are&nbsp;renowned for.

<a href="https://www.whatcar.com/vauxhall/corsa/hatchback/review/n21183">Vauxhall Corsa Electric review</a>

15: Vauxhall Corsa Electric

Citroën is probably most famous for its quirky design, and the latest cars from the brand live up to this tradition, featuring paintwork-protecting ‘Airbumps’ and eschewing the sporty looks favoured by most rivals.

Indeed, Citroën tends to keep away from sportiness altogether and instead tries to put comfort first.

Value (but not cheapness) is also key to the appeal of most Citroëns. And the company’s range includes everything from small hatchbacks (such as the C1 and C3) to big, family-friendly seven-seaters (the Spacetourer and Grand C4 Spacetourer).

The C3 Aircross SUV is another of its popular models, while a larger C5 Aircross is planned.

CITROEN

e-C4

What Car? rating&nbsp;3/5 
Cheapest model&nbsp;100kW&nbsp;You 
P11D price&nbsp;£32,140 
Monthly BIK tax at 20%&nbsp;£10.75 
Monthly BIK tax at 40%&nbsp;£21.42

Mixing up family car, SUV and coupé styling, the ë-C4 offers stylish looks, a comfy ride and a good-quality interior. It doesn't match its looks with much driver entertainment, though, and the electric range isn't the best.

<a href="https://www.whatcar.com/citroen/c4/hatchback/review/n22375">Citroen e-C4 review</a>

14: Citroën ë-C4

GWM ORA

ORA FUNKY CAT

What Car? rating&nbsp;2/5 
Cheapest model&nbsp;First Edition 48kWh 
P11D price&nbsp;£31,940 
Monthly BIK tax at 20%&nbsp;£10.67 
Monthly BIK tax at 40%&nbsp;£21.33

Funky name, funky car... and while this small electric model is cute enough, it's let down by its small boot and&nbsp;sub-200 miles battery range. Plus, rivals are better to drive. Still, for not much more than a tenner a month, you might think those compromises are worth it.

<a href="https://www.whatcar.com/gwm-ora/ora-funky-cat/hatchback/review/n25190">GWM ORA Funky Cat review</a>

13: GWM ORA Funky Cat

Mazda can be summed up in a single word: bold. Not only do its cars generally look like nothing else on the market, but it’s also invested heavily in innovative engine technology.

So, while many car makers have moved to smaller turbocharged engines, Mazda instead offers larger motors that are still efficient. For example, the entry-level petrol option in the Mazda 3 is a 2.0-litre unit –&nbsp;far larger than what you’ll find in most rivals – but it remains very clean.

Highlights of Mazda’s line-up include the MX-5 sports car, which has won our Convertible of the Year Award multiple times, and the CX-5 large SUV, which was named as our inaugural best car for dog owners.

MAZDA

MX-30

What Car? rating&nbsp;3/5 
Cheapest model&nbsp;100kW Active 
P11D price&nbsp;£31,195 
Monthly BIK tax at 20%&nbsp;£10.42 
Monthly BIK tax at 40%&nbsp;£20.83

This is a quirky choice, with its rear-hinged back doors, coupé-like styling, small boot and short, 124-mile official range (or just 53 miles for the range extender version). If you can live with its quirks and compromises, you'll have a well-equipped car with a well-judged ride and handling, and an appealing interior.

<a href="https://www.whatcar.com/mazda/mx-30/hatchback/review/n22066">Mazda MX-30 review</a>

12: Mazda MX-30

Peugeot has its strongest model line-up for some years, with some of its cars now rated by our testers as being among the very best available.

Highlights focus around the firm’s newest SUVs, the 3008 and 5008. The 5008 was named Large SUV of the Year at the 2018 What Car? Awards, thanks to its appealing blend of space, interior quality and low running costs.

That bodes well for future launches, too, because many of the learnings from these cars will be passed on as new versions of existing cars are launched – something that could take many years, because the Peugeot range is so big, ranging from an entry-level supermini with the 108 to an executive saloon with the 508, up into the SUV range and also vans.

Buyers should evaluate some of the lower-rated cars in the range more carefully, though. Some are now quite old, and are subsequently left behind in terms of quality when compared with the opposition, making them below-average buys, in our estimation.

PEUGEOT

Temporary taxonomy to get review live.

ChrisH 01/10/2019

e208

What Car? rating&nbsp;3/5 
Cheapest model&nbsp;100kW Active 
P11D price&nbsp;£31,145 
Monthly BIK tax at 20%&nbsp;£10.42 
Monthly BIK tax at 40%&nbsp;£20.67

Peugeot's smallest model&nbsp;is available as a petrol or electric car, and&nbsp;the e-208 electric version is the smart choice if you pay BIK tax. It's not one of our favourite small electric cars, but it does have plus points, including an inviting interior that looks and feels of a high quality, and good driving manners.

<a href="https://www.whatcar.com/peugeot/208/hatchback/review/n20228">Peugeot e-208&nbsp;review</a>

11: Peugeot e-208

Estate

MG has a long heritage in the UK, and while these days it is owned by Chinese firm SAIC, it is slowly but surely beefing up its model range.

Kicking things off is the MG 3, a rival for affordable hatchbacks such as the Dacia Sandero and Skoda Fabia. Then there’s the ZS small SUV, which faces off against the likes of the Renault Captur and Seat Arona. And at the top of the range is the GS, which goes up against Dacia’s Duster and the Ssangyong Tivoli.

While any future MG products are likely to be introduced in China before coming to the UK, design work is still undertaken in the UK. MG’s design studio is based at Longbridge, where the brand made its name with models such as the MGB GT.

MG MOTOR UK

What Car? rating&nbsp;4/5 
Cheapest model&nbsp;SE 
P11D price&nbsp;£30,940 
Monthly BIK tax at 20%&nbsp;£10.33 
Monthly BIK tax at 40%&nbsp;£20.67

As well as being a rare example of an electric&nbsp;<a href="https://www.whatcar.com/best/estate-cars/n16998">estate car</a>, the&nbsp;MG5 EV rebuffs the idea that only expensive electric cars&nbsp;have a decent range: according to official figures, it's&nbsp;capable of 250&nbsp;miles between charges.&nbsp;It also rides comfortably and has plenty of standard kit.

<a href="https://www.whatcar.com/mg-motor-uk/mg5/hatchback/review/n22011">MG5 EV review</a>

10: MG5 EV

Temporary taxonomy to separate ZS EV from other models in the ZS range. Built by ChrisH 11/10/2019

ZS EV

What Car? rating&nbsp;4/5 
Cheapest model&nbsp;SE 
P11D price&nbsp;£30,440 
Monthly BIK tax at 20%&nbsp;£10.17 
Monthly BIK tax at 40%&nbsp;£20.33

The ZS is the second electric model from MG to feature here, but it's arguably even more practical for your family than the MG 5 estate car also listed here. Indeed, it's&nbsp;roomy and has a decent range – but a&nbsp;smoother ride and less road noise would make a good car even better.&nbsp;

<a href="https://www.whatcar.com/mg-motor-uk/zs/hatchback/review/n20171">MG ZS EV review</a>

9: MG ZS EV

Hatchbacks, SUVs, hybrids, electric cars: Renault makes them all, in a variety of shapes and sizes, meaning&nbsp;it has a line-up designed to tempt pretty much everyone.

From the roadside, the standout feature of all its cars is design, with them instantly recognisable as members of the Renault family, without being so similar that they fall&nbsp;into the Russian doll trap. However, in terms of ability they're a mixed bag,&nbsp;ranging&nbsp;from very good to no better than average.

Models that fall into the former camp include the Clio small hatchback and Megane E-Tech electric car, while the smaller Zoe electric car is also impressive in most respects; it's just a pity Renault omits key safety kit.

On the other hand, the Captur, Arkana and Austral SUVs are all outclassed by several rivals.

Renault has some exciting new models planned, including a new Scenic (this time it will be an electric SUV instead of a conventionally powered MPV) and two cars that reimagine classic Renaults: the 4 and 5.

RENAULT

What Car? rating&nbsp;3/5 
Cheapest model&nbsp;Techno 
P11D price&nbsp;£29,940 
Monthly BIK tax at 20%&nbsp;£10 
Monthly BIK tax at 40%&nbsp;£20

The Zoe has come in for some stick after a disastrous zero-star rating from&nbsp;<a href="https://www.whatcar.com/news/the-safest-cars-on-sale-today/n19724">Euro NCAP</a>. And while there’s no hiding from the Zoe’s lack of an eCall safety system or a post-collision braking system to reduce the severity of secondary impacts, it&nbsp;fights back with a healthy range (reckon on 200 miles or so) and sensible pricing.

<a href="https://www.whatcar.com/renault/zoe/hatchback/review/n152">Renault Zoe review</a>

8: Renault Zoe

Nissan turned up early to the SUV party, with its Qashqai paving the way for the countless models we see today. The Qashqai continues to sell in big numbers in the UK, too, and was also our overall Car of the Year in 2014.

Don’t think Nissan is just about SUVs, though. As well as the Qashqai, the smaller Juke and the larger X-Trail, the Japanese brand has the Micra hatchback, GT-R sports car and Navara pick-up truck.

Nissan was also one of the first big car makers to launch a fully electric car, with its latest Leaf being one of the best on the market.

Despite being based in Japan, Nissan has long committed to building cars in the UK, making several of its best-selling models at a huge factory in Sunderland.

NISSAN

LEAF

What Car? rating&nbsp;3/5 
Cheapest model&nbsp;Shiro 
P11D price&nbsp;£28,440 
Monthly BIK tax at 20%&nbsp;£9.50 
Monthly BIK tax at 40%&nbsp;£19

The original Leaf was one of the first cars to push electrification towards the mainstream. Today’s second-generation&nbsp;model&nbsp;has many more rivals to contend with, but it’s still a solid choice, with&nbsp;lots of standard kit and a big boot.

<a href="https://www.whatcar.com/nissan/leaf/hatchback/review/n17338">Nissan Leaf review</a>

7: Nissan Leaf

Modern Fiats fall into two categories: the retro models and those with more functional designs.

Cars in the first camp appeal to the heart and include the 124 Spider sports car and the 500 series: a hatchback, a convertible, an SUV and two MPVs.

By contrast, the remaining models rely on their practicality and attractive pricing, with the Panda city car, Tipo hatchback and Fullback pick-up truck all prime examples.

Fiat can trace its roots back to the 19th century but is now part of the Fiat Chrysler Automobiles group, along with Alfa Romeo, Chrysler, Jeep and Maserati.

FIAT

What Car? rating&nbsp;4/5 
Cheapest model&nbsp;500 
P11D price&nbsp;£28,140 
Monthly BIK tax at 20%&nbsp;£9.41 
Monthly BIK tax at 40%&nbsp;£18.75

Electric cars may be worthy, but some lack character. That’s not something that can be said of the electric version of the 500 –&nbsp;it’s brimming with retro charm. It's great fun to drive too, but you'll need to be able to live with a limited range and certain practicality compromises.

<a href="https://www.whatcar.com/fiat/500/hatchback/review/n84">Electric&nbsp;Fiat 500 review</a>

6: Electric Fiat 500

What Car? rating&nbsp;5/5 
Cheapest model&nbsp;SE 
P11D price&nbsp;£26,940 
Monthly BIK tax at 20%&nbsp;£9 
Monthly BIK tax at 40%&nbsp;£18

When the MG4 EV came along, it undercut pretty much every rival electric car, so it's no surprise it appears high up on&nbsp;this list. The cheapest version has a fairly average electric range (up to 218 miles, officially), but an Extended Range version with an official range of 323&nbsp;miles is available for a few pounds more each month.

<a href="https://www.whatcar.com/mg-motor-uk/mg4/hatchback/review/n24916">MG4 EV&nbsp;review</a>

5: MG4 EV

DOLPHIN

What Car? rating&nbsp;3/5 
Cheapest model&nbsp;Active 
P11D price&nbsp;£26,140 
Monthly BIK tax at 20%&nbsp;£8.75 
Monthly BIK tax at 40%&nbsp;£17.42

Chinese brand BYD (Build Your Dreams) is new to the UK, but has already launched three electric car models and counting. The Dolphin combines a competitive price with a smart interior, good performance and a usable battery range. Rivals are better to drive, though.

<a href="https://www.whatcar.com/byd/dolphin/hatchback/review/n25891">BYD Dolphin review</a>

4: BYD Dolphin

Owned by Mercedes-Benz and with a reputation for making small, clever cars, Smart offers a striking, upmarket alternative to more conventional rivals.

It currently has a two-car line-up, the smaller of the two being the distinctive Fortwo, which, as its name suggests, is an ultra-short two-seater that uses an unusual rear-engined configuration to deliver the sort of turning circle that even London taxis can only dream of. It's a doddle to park in small spaces, too.

Smart's 'family car' is the Forfour, which is little more than a stretched version of the Fortwo, with a second row of seats and a larger boot. It's more of a natural rival for cars like the Hyundai i10 or Kia Picanto.

On paper, both cars come at a considerable price premium when compared with rivals, something it says is justified by its badge appeal and the technology in the cars.&nbsp;However, sales have been slow and there are often keen Target Price deals to be found.

SMART

FORFOUR EQ

What Car? rating&nbsp;1/5 
Cheapest model&nbsp;Premium 
P11D price&nbsp;£22,240 
Monthly BIK tax at 20%&nbsp;£7.42 
Monthly BIK tax at 40%&nbsp;£14.83

The EQ Fortwo's big(ish) brother has four seats rather than two, so it's a bit more useful at the weekend. It's well equipped and very manoeuvrable, but has an unsettled ride and a short battery range. If you fancy one despite it's one-star rating, be quick – it, too, is going off sale.

<a href="https://www.whatcar.com/smart/forfour/hatchback/review/n18072">Smart EQ Forfour review</a>

3: Smart EQ Forfour

Coupe

FORTWO EQ

What Car? rating&nbsp;2/5 
Cheapest model&nbsp;Premium 
P11D price&nbsp;£22,170 
Monthly BIK tax at 20%&nbsp;£7.42 
Monthly BIK tax at 40%&nbsp;£14.75

Now that the larger&nbsp;<a href="https://www.whatcar.com/smart/hashtag-1/hatchback/review/n25016">Smart #1</a>&nbsp;has been launched, this little&nbsp;electric car is being discontinued, but if you can get one, it'll make a very cheap – and very easy to park – company car. Just go in with your eyes open and understand that a short-range two-seater is never going to be that well suited to long journeys or, indeed, carrying more than one passenger.

<a href="https://www.whatcar.com/smart/fortwo-coupe/city-car/review/n18076">Smart EQ Fortwo review</a>

2: Smart EQ Fortwo

City-Car

What Car? rating&nbsp;2/5 
Cheapest model&nbsp;Ami 
P11D price&nbsp;£7,640 
Monthly BIK tax at 20%&nbsp;£2.60 
Monthly BIK tax at 40%&nbsp;£5.20

This must be one of the quirkiest cars we've seen in the past few years. It's a tiny two-seater with an 8bhp motor that can get you to just 28mph and an official range of 46 miles. It's not very practical, but could suit you if you want a cheap&nbsp;<a href="https://www.whatcar.com/best/electric-cars/n17000">electric car</a>&nbsp;for&nbsp;short trips.&nbsp;There's also a left-hand-drive-only&nbsp;<a href="https://www.whatcar.com/citroen/ami/city-car/review/n25104">Citroën Ami Cargo</a>&nbsp;version aimed at the (very) small van market.

<a href="https://www.whatcar.com/citroen/ami/city-car/review/n23515">Citroen Ami review</a>

<a href="https://www.whatcar.com/news/best-company-cars/n22605">Read more: Best company cars</a> 
<a href="https://www.whatcar.com/class/company-cars">Read more: Company car advice</a>

<hr />
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1: Citroën Ami

We've tracked down the least expensive fleet cars – including a model available from just £2.60 a month in BIK tax. Here are the cheapest company cars in the UK

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