10 best company cars in 2023

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.

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 electric cars detailed below. Do note that relatively minor differences between vehicle specifications (such as different-sized alloy wheels) can impact CO2 emissions, 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

Our pick of the best company cars on sale are

1. BMW 3 Series (BMW 330e)
2. Volkswagen ID.3
3. Tesla Model 3
4. Skoda Superb iV
5. Volvo XC40 (T5 Recharge)
6. Kia e-Niro
7. Range Rover Evoque (P300e PHEV)
8. Mercedes A-Class (A250e)
9. Toyota Corolla
10. Audi A6 (TFSI e)

• Starting price: £44,880
• Body type: Saloon
• Fuel: Petrol/electric
• Co2 emissions: 31g/Km
• BiK rate: 12% (2022/3), 12% (2023/4)
• Annual BiK rate 20%: £1,077
• Annual BiK rate 40%: £2,154

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. Volkswagen ID.3

• Starting price: £39,425
• Body type: Hatchback
• Fuel: Electric
• Co2 emissions: 0g/Km
• BiK rate: 2% (2022/3), 2% (2023/4)
• Annual BiK rate 20%: £158
• Annual BiK rate 40%: £315

If you’d rather go down the all-electric route with your next company car, the Volkswagen ID.3 could be the right choice for you. As an electric car, low Benefit-in-Kind rates for 2022/3 and the following two financial years, but the percentage rate will rise to 3% in 2025/6, and 4% in 2027/8 – though EVs will still hare significantly preferable BiK rates to petrol and diesel cars, as well as plug-in hybrids.

The ID.3 also spacious, comfortable to drive and has a decent range too. Its interior is not quite as plush as the one you’ll find the conventional VW Golf and the touch-sensitive controls are a bit fiddly to use, especially while driving.

3. Tesla Model 3

• Starting price: £42,990
• Body type: Saloon
• Fuel: Electric
• Co2 emissions: 0g/Km
• BiK rate: 2% (2022/3), 2% (2023/4)
• Annual BiK rate 20%: £172
• Annual BiK rate 40%: £344

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.

Another big selling point for the Model 3 is its very low BiK rates. Because it has zero tailpipe emissions, and as with the VW ID.3, the Tesla gets low company car tax rates for the foreseeable future (which is FY 2027/8, as that is how far in advance BiK rates have been decided to).

4. Skoda Superb iV

• Starting price: £37,735
• Body type: hatchback
• Fuel: Petrol/electric
• Co2 emissions: 24g/Km
• BiK rate: 12% (2022/3), 12% (2023/4)
• Annual BiK rate 20%: £906
• Annual BiK rate 40%: £1,811

When it comes to getting the most amount of room and practicality from a company car, there are worse options out there than the Skoda Superb. Few cars of this size can beat the Skoda when it comes to cabin space and boot capacity. Plus, thanks to its comfy ride and well-equipped interior, it’s a nice car to commute – though the Volkswagen Passat is comfier still and, if you’re after something that’s a bit fun to drive, you may be better off with a Ford Mondeo.

Though there are plenty of engines available on the Superb, the plug-in hybrid options in the Superb iV models are definitely worth considering by company car drivers. While you may not be able to match the claimed fuel economy of up to 267mpg (especially if you do lots of motorway driving), the car’s low CO2 emissions means the Superb iV has a BiK rate of 12% – though this will rise to 13% in 2025/26, and will hit 15% by the 27/28 financial year.

5. Volvo XC40 T5 Recharge

• Starting price: £45,790
• Body type: SUV
• Fuel: Petrol/electric
• Co2 emissions: 47g/Km
• BiK rate: 14% (2022/3), 14% (2023/4)
• Annual BiK rate 20%: £1,282
• Annual BiK rate 40%: £2,564

Not every eco-friendly company car has to be a big saloon – as the plug-in hybrid versions of the Volvo XC40 show, you also have options if you’d prefer a stylish SUV. The Volvo is comfortable and relaxing to drive over long distances and, unlike some other plug-in hybrid cars, the boot space hasn’t been compromised by the need to package a big battery pack.

The only slight caveat is that the XC40 PHEV can only cover 28.6 miles on battery power alone: while that should be fine in terms of day-to-day use, its lack of ability to crack the 30-miles barrier means it gets a slightly higher BiK rate, at 14% rather than 12%, impacting your tax liabilities.

6. Kia Niro EV

7. Range Rover Evoque (P300e PHEV)

• Starting price: £48,715
• Body type: SUV
• Fuel: Petrol/electric
• Co2 emissions: 32g/Km
• BiK rate: 12% (2022/3), 12% (2023/4)
• Annual BiK rate 20%: £1,169
• Annual BiK rate 40%: £2,338

There are many plug-in hybrid Land Rovers on sale right now, from the modern reimagining of the iconic Defender, to the plush full-fat 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 lofty BiK rates of 37%, the P300e version will set company car drivers back 12% thanks to low CO2 emissions and an official range of 38 miles in all-electric mode.

8. Mercedes C-Class C300 e

• Starting price: £48,710
• Body type: saloon
• Fuel: Petrol/electric
• Co2 emissions: 12g/Km
• BiK rate: 5% (2022/3), 5% (2023/4)
• Annual BiK rate 20%: £487
• Annual BiK rate 40%: £974

Prefer something a little bit more premium? Enter the plug-in hybrid version of the Mercedes C-Class, which has a rather impressive electric-only range of 71 miles, something that helps it squeeze into the 5% BiK rate, making it not much more expensive in terms of company car tax than a full electric car.

While the Mercedes C300 e is a pretty pricey car, that expense does at least get you a well-equipped interior with Mercedes’ latest infotainment system, and a cabin that is not dissimilar in style to the luxury S-Class.

9. Toyota Corolla

• Starting price: £30,210
• Body type: Hatchback
• Fuel: Petrol/electric
• Co2 emissions: 102g/Km
• BiK rate: 25% (2022/3), 25% (2023/4)
• Annual BiK rate 20%: £1,510
• Annual BiK rate 40%: £3,021

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, and want a hybrid but don’t have the off-street parking that makes life with a plug-in hybrid so much more convenient.

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 models, to company car tax is that much higher – though still a fair bit lower than a conventional petrol or diesel family hatch.

10. Audi A6 (TFSI e)

• Starting price: £54,515
• Body type: Saloon
• Fuel: Petrol/electric
• Co2 emissions: 27g/Km
• BiK rate: 8% (2022/3), 8% (2023/4)
• Annual BiK rate 20%: £872
• Annual BiK rate 40%: £1,744

At first glance, you may think a big executive saloon like the Audi A6 would be quite expensive to have as a company car. However, that isn’t so much the case with the plug-in hybrid TFSI e model, as this version’s low CO2 emissions help it in terms of tax obligations, while an electric-only range of 42 miles get it into a lower BiK bracket than some plug-in hybrids.

Being an Audi A6, it’s also a mightily comfy car to commute in, and the interior is also as good as you’d expect from an Audi at this price. As with many plug-in hybrid cars, though, the TFSI e version carries quite a premium over a regular Audi A6.

It’s also worth pointing out that, while a decent amount of kit comes as standard, there are some very expensive options available for the A6 – as BiK rates are calculated as a percentage of the car’s value, you could end up paying more than you need in company car tax if you go a bit overboard with the options and accessories lists.

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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.