10 best company cars in 2025

The best company cars need to be comfy, spacious and have enough tech and features to take the sting out of long commutes and business trip journeys, while also having low Benefit-in-Kind (BiK) company car tax rates that help reduce how much of your salary goes towards your company car. Changes to the rates back in 2020 made electric vehicles by far the cheapest option from a tax perspective, hence them dominating our recommendations for people paying BiK.

Company car tax is calculated based on a vehicle’s carbon dioxide emissions, so the cars we feature here are not only great models in their own right, they also produce very little CO2, or none in the case of the EVs. Do note that relatively minor differences between vehicle specifications (such as different-sized alloy wheels) can impact both CO2 emissions and price, and thus BiK rates – so check the trim levels, features and precise CO2 emissions of any car you’re considering carefully. If you’d like to know more about Benefit-in-Kind company car tax, head to our dedicated guide to the topic, and check out the latest Carwow business leasing deals.

Our pick of the best company cars on sale are

1. Volvo EX30
2. MG 4 EV
3. Tesla Model 3
4. BMW i4
5. Kia EV6
6. Audi Q4 e-tron
7. Mercedes A-Class PHEV
8. Hyundai Ioniq 5
9. Skoda Octavia
10. MG 5 EV

• Starting price: £33,740
• Body type: SUV
• Fuel: Electric (range from up to 214 miles)
• Co2 emissions: 0g/Km
• BiK rate: 2% (2023/24 and 2025/26), 3% (2026/27)
• Annual BiK rate 20%: £135
• Annual BiK rate 40%: £270

Volvo’s baby electric SUV is the 2024 Carwow Car of the Year, and it’s got a variety of strengths that make for a great company car. As well as being electric, which is the company car tax no-brainer for anyone capable of running an EV, the Volvo EX30 incredibly comfortable, has loads of tech and safety kit and is really competitively priced, starting at well under £35,000.

That’s admittedly for the version with the shorter range of an official 214 miles, but the car with the bigger battery has an official figure of getting on for 300 miles.

2. MG 4 EV

• Starting P11D price: £26,940
• Body type: Hatchback
• Fuel: Electric (Range from up to 218 miles)
• CO2 emissions: 0g/Km
• BiK rate: 2% (2023/24 and 2025/26), 3% (2026/27)
• Annual BiK rate 20% from: £108
• Annual BiK rate 40% from: £216

The MG 4 is the car Volvo’s EX30 deposed as Carwow’s Car of the Year, with the MG hatchback having taken the title in 2023.

The 4 put a practical electric hatchback into the reach of more people than could previously afford one, taking EVs down into the mid-£25,000 area. It’s stylish and distinctive, especially in some of the bolder colour choices, and is decent to drive, especially if you go crazy and plump for the 435hp MG 4 XPower version, itself something of a bargain in performance car terms.

3. Tesla Model 3

• Starting P11D price: £39,935
• Body type: Hatchback
• Fuel: Electric (Range from up to 319 miles)
• CO2 emissions: 0g/Km
• BiK rate: 2% (2023/24 and 2025/26), 3% (2026/27)
• Annual BiK rate 20% from: £160
• Annual BiK rate 40% from: £319

The Tesla Model 3 received a tranche of improvements in 2023 that made it better than ever, winning it Carwow’s 2024 Outstanding EV Award. 

The revisions ironed out criticisms of the original Model 3’s comfort and refinement, as well as giving it enough of a visual tweak to make it noticeable. 

Hugely popular, the Model 3 has the benefit of Tesla’s excellent charging network, although you do have to get used to the controls all going through a central touchscreen system.

4. BMW i4

• Starting P11D price: £52,255
• Body type: Hatchback
• Fuel: Electric (range from at least 288 miles)
• CO2 emissions: 0g/Km
• BiK rate: 2% (2023/24 and 2025/26), 3% (2026/27)
• Annual BiK rate 20% from: £209
• Annual BiK rate 40% from: £418

While the plug-in hybrid BMW 3 Series was long the desirable and tax-efficient company car of many a self-respecting salesman, the massive benefit-in-kind taxation advantages of electric cars mean the focus is now on BMW’s all-electric offering. And the BMW i4 steps up nicely, offering a zero-emission experience that still has BMW’s core hallmarks of a car that’s fun to drive and offers good tech including an excellent infotainment system. The high-performance 544hp i4 M50 especially, but even the 286 eDrive35 is a hoot to drive.

5. Kia EV6

• Starting P11D price: £45,220
• Body type: Hatchback
• Fuel: Electric (Range from at least 300 miles) 
• CO2 emissions: 0g/Km
• BiK rate: 2% (2023/24 and 2025/26), 3% (2026/27)
• Annual BiK rate 20% from: £181
• Annual BiK rate 40% from: £362

The Kia EV6 was one of the first electric vehicles that really turned heads, looking like nothing the Korean brand had ever built before. And there’s real substance behind the style with excellent range figures from the various EV6 model alternatives, as well as impressive charging speed capability. It’s not cheap, but the EV6 is a high-quality option inside and out. 

6. Audi Q4 e-tron

7. Mercedes A-Class PHEV

• Starting price: £40,690
• Body type: hatchback
• Fuel: Petrol/electric
• Co2 emissions: 21g/Km
• BiK rate: 8% (2023/24 and 2025/26), 9% (2026/27)
• Annual BiK rate 20% from: £651
• Annual BiK rate 40% from: £1302

EVs are far and away the most sensible company car alternative thanks to the advantageous tax regime, but they don’t suit everybody, and plug-in hybrids are the next next thing if you want to minimise the amount of your wage packet heading for HMRC every month. But even then you’re looking at over three times the tax bill for a Mercedes A-Class PHEV compared with the bigger and more expensive Audi Q4 e-tron, for example. 

But if you need a level of flexibility that an EV can’t provide, and can still charge at home to make the most of that PHEV powertrain, then Mercedes’s plug-in hybrids are up with the best. Though the official figure of 51 miles of EV-only driving won’t be matched in the real world, as is the case with any car’s EV range or fuel economy figures, it’s still a lot more than most PHEVs will offer.

8. Hyundai Ioniq 5

• Starting P11D price: £43,445
• Body type: Hatchback
• Fuel: Electric (Range from up to 238 miles)
• CO2 emissions: 0g/Km
• BiK rate: 2% (2023/24 and 2025/26), 3% (2026/27)
• Annual BiK rate 20% from: £174
• Annual BiK rate 40% from: £347

The futuristic-yet-retro Hyundai Ioniq 5 certainly turns heads, but its spacious and high-quality interior will be just as appealing to those on the inside. Cars with the smaller 58kWh battery give the car its entry price tag, but it’s the 77kWh car that gives you the handy 300-mile+ range. It will also charge at a faster rate, but all Ioniq 5 models will take on electricity more quickly than most electric cars. With either you’re looking at 10%-80% in 36 minutes at a super-fast public charger. 

Boot space is decent without being excessive, and the Ioniq 5 majors on comfort rather than sportiness, apart from the ludicrous 650hp Ioniq 5 N high-performance version.

9. Skoda Octavia

• Starting P11D price: £25,700
• Body type: Hatchback
• Fuel: Petrol
• CO2 emissions: g/Km
• BiK rate: 29% (2023/24 and 2025/26), 30% (2026/27)
• Annual BiK rate 20% from: £1491
• Annual BiK rate 40% from: £2981

Electric vehicles are far and away the logical choice from a financial perspective for anyone running a company car, but for some they simply don’t work, and petrol or diesel still has its place, even if you will pay for the privilege. Compare the benefit-in-kind on the Skoda Octavia with the MG 5 (below) to see what we mean. 

But if you need a petrol car, because you can’t charge at home or you’re a particularly high-mileage user, then the Octavia is about as sensible as the decision could be. It’s huge for rear passengers and luggage, has an economical but useful petrol engine and is well-equipped including some clever Skoda features such as umbrellas and ice scrapers tucked away.

10. MG 5 EV

• Starting P11D price: £30,940
• Body type: Estate
• Fuel: Electric (range from up to 250 miles)
• CO2 emissions: 0g/Km
• BiK rate: 2% (2023/24 and 2025/26), 3% (2026/27)
• Annual BiK rate 20% from: £124
• Annual BiK rate 40% from: £248

One of few electric load luggers, (apart from the MG 5 only the Peugeot e-308 SW and Vauxhall Astra Sports Tourer Electric can offer EV estates) this is a great combination of EV benefits and carry ability.

The styling was sharpened nicely from the bland models that pre-date the 2022 facelift, and the top-spec Trophy model in particular is well equipped. But it’s that handy, square, 580-litre boot in a car that’s still small enough to be a breeze in town that headlines the MG 5’s appeal.

Change cars with carwow

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Oh, and did you know we also offer business leasing? Head over to our leasing deals page to see what we have on offer.