Top 10 Best Company Cars for Business Drivers

Mixi January 30, 2022 | 06:59

Dear Business Drivers, there are a lot of factors that you need to take into consideration when buying a company car.

Best Conpany Cars. Photo: KnowInsiders

The company car market has seen several changes over the past few years, especially with the onset of electrification.

The Government is pushing motorists to reduce their carbon footprint and rewarding business users for going green with more favorable company car tax rates.

Company cars have always been a perk, a tasty four-wheeled sweetener for signing up to a new job.

Which are the Best Company Cars for Business Drivers

1. BMW 3 Series 330e

2. Audi Q5 50 TFSIe Sport

3. Skoda Kamiq

4. Peugeot e-208 Allure Premium

5. Tesla Model 3

6. Range Rover Evoque (P300e PHEV)

7. Dacia Sandero Stepway TCe 90 Prestige

8. Renault Clio TCe 90 Iconic

9. Toyota Corolla

10. Hyundai i20 1.0T 100 MHEV SE Connect

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Top 10 Best Company Cars for Business Drivers

1. BMW 3 Series 330e

Photo: 24H

The BMW 3 Series is already a great executive saloon, so it makes sense that the plug-in hybrid 330e version is worth shortlisting if you’re after a well-rounded company car. Just like the regular version, it manages to be comfy while also being fun to drive, and there’s a good amount of interior space, too – though do bear in mind that the 330e’s boot is quite a bit smaller than the one on the regular 3 Series, due to the way the battery is stored under the boot floor.

Where the BMW 330e loses ground in the practicality stakes, it claws back some ground with its very low BiK rates of 10%. In comparison, the regular BMW 3 Series’ BiK rates range from 26% to 37%, depending on the spec and what the engine is under the bonnet.

2. Audi Q5 50 TFSIe Sport

Photo: Audi MediaCenter

It’s hard to pick fault with the stylish and beautifully finished Q5, which is a consummate all-rounder. Spacious, well equipped and oozing premium appeal, the high-riding Audi is the sort of car that slips seamlessly into your life. It’s not much fun to drive, but it’s poised, planted and benefits from quatrro security, plus it’s comfortable and has impeccable long-haul credentials.

The addition of mild-hybrid engines has improved efficiency, but business users are better served by the plug-in hybrids. The 50 TFSIe in Sport trim combines 2.0-litre petrol and electric power for 295bhp and 35g/km emissions, the latter resulting in a 13% BIK rating. If your budget stretches further up the range, bear in mind that the 362bhp 55 TFSIe costs barely any more in tax over an equivalent-spec 50 TFSIe.

3. Skoda Kamiq

Photo: CarsGuide

Best model 1.0 TSI 95 SE | What Car? rating 5/5 | CO2 emissions 123-132g/km | P11D price £20,710 | Monthly BIK tax rate 2021/22 @40% From £193.29

The Kamiq is a great all-rounder. Comfortable, roomy, economical and well finished, Skoda’s smallest SUV is one of the standard-setters in its class.

You don’t need to choose one of the pricier versions, because our favourite is the 1.0 TSI 95 SE, which is one up from the base specification. The 1.0-litre engine is a lot livelier than its modest power output suggests, and SE spec has air conditioning, alloy wheels, and Apple CarPlay and Android Auto smartphone mirroring.

Low CO2 emissions and competitive pricing makes for low company car tax bills, with a 40% tax payer shelling out less than £200 per month. If you’re in the 20% tax bracket, you can halve that cost.

4. Peugeot e-208 Allure Premium

Photo: Select Car Leasing

It’s still rare these days that an all-electric version of a car is more desirable than its combustion-engined counterpart, but that’s exactly the case with the e-208. The standard car’s style, refinement and comfort perfectly match the EV’s near-silent 134bhp motor and effortless, linear acceleration.

It’s backed by a 217-mile range and a rapid DC 100kWh charging capability, which is rare in this sector. It’s obviously a great company car choice, particularly if your business requires multiple short hops, because all versions are rated at 1% BIK. The entry-level Active Premium will cost just £59 for lower-rate users, but we’d add another couple of quid to our tax bill for the much better-equipped Allure Premium.

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5. Tesla Model 3

Photo: DoanhnhanPlus

The Tesla Model 3 is another EV that could make a great choice as a company car. While it doesn’t have quite the same amount of passenger space the BMW 3 Series, it’s still quite roomy inside and, thanks to the car’s big battery pack, you should be able to cover a good amount of ground before you need to think about charging the Tesla up.

Arguably the Model 3’s big selling point for company car drivers is its very low BiK rates. Because it has zero tailpipe emissions, the Tesla is exempt from any additional company car tax charges for the 2020/2021 tax year, and just a 1% rate will be applied during the 2021/2022 tax year.

6. Range Rover Evoque (P300e PHEV)

Photo: Xe Hay

There are many plug-in hybrid Land Rovers on sale right now, from the off-road-focused Defender to the plush Range Rover. Of the batch of plug-in Land Rovers, it’s the Range Rover Evoque P300e that should be on your radar if you’re thinking of having a 4×4 as your next company car.

For the most part, the plug-in hybrid Evoque has all the pros and cons of the regular car. This means the P300e is relaxing to drive and has a high-quality interior, although like all plug-in hybrids, you will need regular access to a charger to get the benefit of the hybrid set up.

Of course, the real draw of the P300e is the fact it has by far the lowest company car tax rates of any Evoque on sale right now. Whereas every other Range Rover Evoque model is hit by a lofty BiK rate of 37%, the P300e version will set company car drivers back 6% to 10% for the 2020/2021 tax year, depending on the spec of the car.

7. Dacia Sandero Stepway TCe 90 Prestige

Photo: ADAC

The latest Sandero range, including the trendy SUV-like Stepway here, is so cheap that it even rivals some electrified cars for affordable company car tax bills. Fuel economy is reasonable and performance is decent; considering the bargain list price, it’s really hard to fault.

Yet the Sandero doesn’t feel like a cheap car. It uses tech from the new Renault Clio and drives similarly, despite costing much less. It’s comfortable, relatively quiet and composed, plus it has a pleasant interior.

It’s a big step on from the previous version, but you still probably want to stick to the higher model lines to get all the modern kit you want. Prestige trim includes an eight-inch sat-nav screen with smartphone connectivity, plus cruise control, blind-spot monitoring, keyless entry, climate control, a rear camera, AEB and LED lights.

8. Renault Clio TCe 90 Iconic

Photo: Arnold Clark

Our favourite supermini is a great choice for company car buyers when it’s fitted with the 1.0-litre TCe because of its low emissions and great value – you get loads of kit for the money.

Inside the Clio feels more expensive than the price suggests, with high-quality materials matched to a smart and modern-looking design. It’s generously equipped too, especially in Iconic trim.

The Clio is comfortable and practical, with more than enough room in the back for kids to get settled, and a decent boot with 284 litres of space.

9. Toyota Corolla

Photo: CarsoPedia

Toyota has long been a proponent of petrol-electric power, so it perhaps isn’t a shock the hybrid Corolla is worth having a look at if you’re after an eco-friendly company car. It’s especially worth considering if you’re after a relaxing drive.

Because the Corolla is a conventional hybrid rather than a plug-in hybrid, it should also be a bit easier to match the Toyota’s claimed fuel economy of up to 62mpg in day-to-day driving – though this also means it doesn’t have the ultra-low on-paper CO2 emissions and BiK rates as similarly-sized plug-in hybrid hatchbacks like the Mercedes A250e.

However, thanks to its 23% to 27% rates for the 2020/2021 tax year, the Toyota Corolla should be a bit more affordable than a conventional petrol or diesel family hatch.

10. Hyundai i20 1.0T 100 MHEV SE Connect

Photo: Arnold Clark

Hyundai has come a long way in a short space of time, and the latest i20 is proof of that. It’s not the bargain it once was, but the improvements more than justify the price hike. It’s better to drive than ever thanks to a more responsive chassis and quality engineering, too – there’s even a hot i20 N version for performance car fans

Proof of that engineering is evident in the addition of a new mild-hybrid petrol engine. It’s got just under 100bhp, so performance is fine considering it’ll also emit only 115g/km of CO2. It’s efficient and fun to use, and while you won’t notice the mild-hybrid tech most of the time, the upshot is that it helps to keep the tax bills low.

Even in entry-level SE Connect trim the i20 is well equipped. Standard kit includes 16-inch alloys, a leather steering wheel, air-con, auto high beam, cruise control, parking sensors, AEB, lane-keep assist and an eight-inch touchscreen with smartphone integration, plus an impressive 10.25-inch digital dial display.

What is BiK?

Benefit-in-Kind (BiK) is a tax collected on perks you’re given from your workplace. If you have a company car which includes personal use, it will have a BiK valuation added to it. Company cars are put into a BiK bracket based on their CO2 emissions.

For example, let’s say your car emits 60 g/Km of Co2 (putting it in the 16% BiK rate band) and has a list price of £50,000. To get the BiK value you multiply the list price by the BiK rate, in this case £50,000 x 16% = £8000. To work out how much you’ll pay per year, take this BiK value and multiply it by your income tax band. So if you’re on a 20% tax rate, it will be £8000 x 20% which means you’ll pay £1,600 per year. If you’re on a 40% income tax rate, it will be £8000 x 40%, which is £3,200.

Diesel cars were once the go-to choice for company car buyers, thanks to the tax benefit those cars enjoyed in previous years – diesel cars generally have lower CO2 emissions than petrol-powered cars. Things have moved on and now company car tax favours electrified cars over diesel. So the cars in this list are a mix of plug-in hybrid cars, full hybrids and electric cars.