There's a huge list to choose from, but here are our favourite company cars

One of the most exciting tasks when starting a new job is making sure you tick the box for the best company car. Increased taxation means that not as many employees are clamouring for a set of work wheels, but choose wisely and it still remains an excellent perk that can also save you cash.

Of course, the best way to reduce Benefit-in-Kind (BIK - the tax applied to company cars) is to pick an electric car, with business users being liable for a charge based on just 2% of the car’s value. As a result, battery-powered models can save user-choosers thousands of pounds a year in tax. We have a separate best electric company cars article.

However, while EVs (and the charging infrastructure they rely on) have come on leaps and bounds, these types of machines still don’t make sense for many drivers, who rack up big distances on a tight schedule. 

As a result, traditional internal combustion engine (ICE) and hybrid models still make more sense for many employees. Of course, many of them will result in a much larger salary sacrifice than zero emissions vehicles, but choose carefully and you can still minimise your monthly outlay.

Our top 10 below concentrates on ICE and hybrids. Our top 10 choices are across a number of categories, from small cars to SUVs there should be something for everyone, with each combining low BIK bills with enough driver appeal to keep things interesting.

Top 10 Best Company Cars

1. BMW 530e

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https://www.autocar.co.uk/best%20company%20cars%20bmw%205%20series

BiK rate: 8%
Monthly BiK tax at 20%: £79
Monthly BiK at 40%: £158

Now in its eighth generation, the 5 Series continues to lead the executive saloon pack - although its margin of superiority is smaller than it's ever been. Bigger and heavier than before, the three-box BMW has lost some of its predecessor’s traditional dynamic sparkle, but the trade-off is almost 7 Series levels of comfort and refinement.

The vast, beautifully finished interior will keep clients happy, although the infuriating overwrought infotainment will test the patience of many drivers. There are plenty of powertrains to choose from, yet the plug-in hybrid’s blend of decent urge, 8% BiK and over 60 miles of EV running covers all the company car bases.

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2. Mercedes S580e

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https://www.autocar.co.uk/Best%20company%20cars%20Mercedes%20S-Class

BiK rate: 8%
Monthly BiK tax at 20%: £158
Monthly BiK at 40%: £316

For the CEO seeking the finest things in life there's still little that can touch the S-Class. Imperious in its looks and demeanor, the plutocratic German machine remains the luxury car all others are judged by. Library-like silence on the move and a pillowy soft ride are present and correct, as are the exquisite finish and cutting edge tech.

It steers pretty deftly for such a big old bus, and for those that rather be chauffeured there’s acres of space in the lavishly appointed rear. Of course, no self-respecting company chairman would take the plunge before carefully interrogating the bottom line, which is where the S580e plug-in hybrid comes in. Thanks to its 68 miles of EV running, the Merc attracts a BiK rating of 8%, meaning a higher rate earner will pay only around £1500 more a year tax than they would for the Renault Clio that appears elsewhere in this list.

3. Cupra Formentor 1.4 e-Hybrid

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https://www.autocar.co.uk/Best%20company%20car%20Cupra%20Formentor

BiK rate: 12%
Monthly BiK tax at 20%: £86
Monthly BiK at 40%: £167

The first bespoke model to be launched under SEAT’s sporty Cupra brand, the Formentor is eye-catchingly styled, spacious and, in PHEV guise, cost-effective to run for user-choosers. Crucially, it’s also good to drive, with assured and agile handling that’s at odds with its raised ride height SUV stance.

Under the skin it features VW Group’s familiar MQB architecture and a turbocharged 1.4-litre mated to an electric motor for a combined output of 241bhp and an all-electric range of 38 miles. Its BiK rating of 12% isn’t as low as some, but it’s offset by an attractive price tag that sees lower rate earners sacrificing £84 a month.

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4. Peugeot 308 PHEV

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https://www.autocar.co.uk/Best%20company%20car%20Peugeot%20308

BiK rate: 12%
Monthly BiK tax at 20%: £76
Monthly BiK at 40%: £152

With the newly facelifted Golf currently lacking plug-in hybrid power, our company car top pick becomes the Peugeot 308. Featuring the same ‘mainstream premium’ vibe as its German rival, the French five-door feels a cut above much of the competition, its cabin mixing eye-catching design with a solid finish.

The addition of a largish battery and electric motor blunts some of the standard car’s ride and handling elan, but the 308 still has enough fluidity to keep things interesting. More importantly, the petrol-electric powertrain responds smoothly and keenly enough, plus there’s a claimed 35 miles of all-electric range, which should be more than enough for the commute into the office.

5. Mercedes C330e

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https://www.autocar.co.uk/Best%20company%20cars%20Mercedes%20C-Class

BiK rate: 5%
Monthly BiK tax at 20%: £43
Monthly BiK at 40%: £86

If you value driving thrills above all else, then the BMW 3 Series remains our top compact executive pick. However, this is a rundown of the best company cars, and in this respect the Bimmer is beaten by the Mercedes C Class - or to be specific, the plug-in hybrid version of Stuttgart’s mid-sized saloon.

Thanks to its usefully-sized 25.4kWh battery, the C300e claims an impressive 68 miles on a charge and falls into the 5% BiK bracket. Other highlights include a cosseting cabin that oozes upmarket appeal, excellent rolling refinement and punchy 309bhp petrol-electric powertrain. It’s not as sharp to drive as the BMW, but there’s enough poise and accuracy to keep things interesting.

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6. Land Rover Discovery Sport P300e

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https://www.autocar.co.uk/Best%20company%20cars%20Land%20Rover%20Discovery%20Sport

BiK rate: 12%
Monthly BiK tax at 20%: £105
Monthly BiK at 40%: £210

There are newer, larger and more sophisticated family SUV options out there, but very few manage to rival the Discovery Sport’s compelling blend of talents. Numerous updates have helped keep it looking fresh, while the versatile interior has been sprinkled with just enough of big brother Range Rover’s uppercrust glamour.

For business users it’s the P300e PHEV that holds the most appeal, its combination of turbocharged 1.5-litre three-cylinder petrol and electric motor serving up 294bhp, 34 miles of EV range and a 12% BiK rating. Measured steering and fluid ride help it engage on every business trip, while unparalleled off-road ability means no location is off limits when visiting clients.

7. Range Rover Sport P460e

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https://www.autocar.co.uk/Best%20company%20cars%20Range%20Rover%20Sport

BiK rate: 5%
Monthly BiK tax at 20%: £75
Monthly BiK at 40%: £150

Move up the SUV pecking order and you’ll find the best 4x4 by far still wears a Range Rover badge on its nose. The latest Sport is better than ever, knitting together the lavish luxury and hushed refinement of its even larger brother with a welcome dose of agility and driver engagement that make it surprisingly fun for such a big ‘un.

Power comes from the firm’s muscular 3.0-litre straight-six Ingenium petrol and torquey electric motor, while a chunky 38.2kWh battery delivers a claimed EV range of more than 70 miles (not to mention a BiK figure of 5%). Few cars radiate successful business savvy like the Range Rover, meaning that you’ll alway be dressed to impress when arriving for those crucial board meetings and client catch-ups.

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8. Renault Clio E-TECH Hybrid

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https://www.autocar.co.uk/Best%20company%20cars%20Renault%20Clio

BiK rate: 24%
Monthly BiK tax at 20%: £159
Monthly BiK at 40%: £318

Sometimes it pays not to think big when choosing a company car. After all, most business users only travel one-up, while the more compact you motor the less it’s likely to cost, meaning lower BiK bills. More importantly, choosing a supermini doesn’t mean slumming it, because the latest generation of tiny tots set big car standards for ride and refinement, plus they come with all the kit a user chooser would choose to use.

Sitting at the top of the pile of pint-sized contenders is the Clio, which in hybrid guise covers all the fleet car bases. A typically fluid French ride and handling balance helps keep drivers entertained, while petrol-electric drivetrain has enough urge for confident outings into the outside lane, plus low enough CO2 emissions to attract a 24% tax rate.

9. Volvo XC90 T8 Plug-in Hybrid

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https://www.autocar.co.uk/Best%20company%20cars%20Volvo%20XC90

BiK rate: 8%
Monthly BiK tax at 20%: £95
Monthly BiK at 40%: £190

Age shall not wither the XC90, which continues to be a paragon of the seven-seater art despite facing retirement squarely in the face. The all-new, all-electric EX90 is just around the corner, but Volvo’s current SUV flagship remains an impressive all-rounder.

Chiselled good looks ensure it still looks the part, while aging infotainment aside the Scandi-minimalism of the cabin means it feels as fresh and classy as ever. It’s a genuine seven-seater too, with the third row offering enough space to keep adults happy. For business users in a hurry, the plug-in hybrid’s blend of 402bhp performance and 40-odd miles of EV range mean 0-62mph in 5.5 seconds and an 8% tax liability. It’s no hot hatch in the corners, but the XC90 always feels safe and secure, while few rivals will leave you as fresh-feeling at the end of a long day in the office.

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10. Ford Ranger

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https://www.autocar.co.uk/

BiK rate: Flat rateable value of £3960 a year
Monthly BiK tax at 20%: £66
Monthly BiK at 40%: £132

Thanks to a last-minute reprieve by HMRC, double-cab pick-up trucks will continue to be classed as commercial vehicles and so attract much more favourable tax rates. That’s great news for business users looking for a rough-and-tumble runaround that also has just enough dynamic polish and creature comforts to be used as a family workhorse at the weekends.

Best of the bunch is the Ford Ranger, and that is not simply by default  because this corner of the market has become increasingly sparsely populated. The big Ford steers with precision and largely avoids the crashy, horse-and-cart ride of other live-axled and leaf sprung trucks, plus its slightly gruff 2.0-litre diesel delivers just enough puff. It’s spacious interior also benefits from a sheen of sophistication and, in Wildtrak guise, all the kit a captain of industry could desire 

James Disdale

James Disdale
Title: Special correspondent

James is a special correspondent for Autocar, which means he turns his hand to pretty much anything, including delivering first drive verdicts, gathering together group tests, formulating features and keeping Autocar.co.uk topped-up with the latest news and reviews. He also co-hosts the odd podcast and occasional video with Autocar’s esteemed Editor-at-large, Matt Prior.

For more than a decade and a half James has been writing about cars, in which time he has driven pretty much everything from humble hatchbacks to the highest of high performance machines. Having started his automotive career on, ahem, another weekly automotive magazine, he rose through the ranks and spent many years running that title’s road test desk. This was followed by a stint doing the same job for monthly title, evo, before starting a freelance career in 2019. The less said about his wilderness, post-university years selling mobile phones and insurance, the better.

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