Best company cars to beat BIK in 2020/2021

Best company cars to beat BIK in 2020/2021
Martin Brown

Posted by

Martin Brown

September 2020

The appeal of a company car remains a strong attraction in any employee benefit package.

In a survey conducted by vehicle leasing and mobility solutions provider Arval for its annual Mobility Observatory report, fewer than 20% of drivers surveyed said they would be willing to give up their company car for an alternative mobility solution.

And you can understand why, too. Despite ongoing attacks about the company car’s value, it remains a very strong employee benefit, both for retaining staff and attracting new talent.

How do you argue with a car that’s paid for by the company, looked after by the business, and the only pay back on the employee’s part is benefit in kind company car taxation?

Nevertheless, the company car’s appeal has come under some pressure thanks to a benefit in kind taxation system that, until April 2020, was persuading some drivers to consider the benefits of opting out of the company car scheme.

But is a cash option a better alternative?

We’re not convinced here at Fleet Alliance, especially now the company car tax system has finally been revised to favour ultra low emission vehicles (see my previous blog Fast forward with new company car tax rules).

Those April changes to benefit in kind taxation were really significant. Fully electric vehicles saw benefit in kind tax in 2020/21 dropping to 0%. And then rising to 1% the following year and then 2% through to April 2025.

It makes the arguments for a company car alternative look shaky at the very best.

So, we’ve put together a list of great company car suggestions that you can drive, enjoy and benefit from low levels of company car taxation, while delivering all the benefits of a company provided vehicle.

And it’s not just small eco cars, just in case you were wondering. We have selected a broad range of cars, from supermini to SUV, which embraces the most tax-effective powertrains: battery electric cars, PHEV petrol-electric plug-in and PHEV diesel-electric plug-in vehicles.

So here we go. Six cars to beat BIK.

 

Vauxhall Corsa-e 100kW Elite Nav 50kWh 5dr Auto

Vauxhall has recently introduced the electric version of its all-new Corsa – a smart-looking car aiming to deliver the quality you would expect from a Volkswagen Polo with the driving experience of a Ford Fiesta. If that sounds like a tall order from Vauxhall, you have to remember it is now part of the PSA Group (Peugeot/Citroen), so you can understand why Vauxhall is so confident about its small car. And that confidence has been translated well into the electric version, which goes about its business in a fuss-free and unflustered way. There’s plenty of acceleration when you need it, but a calm, relaxed drive when you need to cover the miles. It’s well-specified too in Elite Nav trim.

  • CO2: 0g/km
  • BIK tax band 20/21: 0%
  • Tax per month: from £0
  • EV Range: 209 miles

e-Corsa

Peugeot 3008 1.6 Hybrid 225 Allure 5dr e-EAT8

The Peugeot 3008 SUV has been a big success with business drivers and individuals alike. It offers great looks, that high-up SUV driving experience, plus it’s terrific as a family hold-all being immensely practical without being obvious about it. This is the plug-in hybrid version which marries Peugeot’s 1.6-litre petrol engine with a 13.2kWh lithium-ion battery. That means it can travel up to 40 miles in electric only mode, or use both engine and battery – which means you have no worry about running out of electric charge because you can always rely on the petrol engine. The 2021 model year versions (pictured) will feature enhanced styling and new features as well.

  • CO2: 30g/km
  • BIK tax band 20/21
  • Tax per month: from £37
  • EV range: 40 miles
  • Fuel consumption: 222mpg

3008

Kia e-Niro 150kW 4 64kWh 5dr Auto

The Kia e-Niro is a crossover style SUV/estate that company car drivers really should consider. For one thing, Kia has increased volume production for the car to meet the level of demand. Kia says if you order now, you’ll get the car during Q4 2020. So that’s good. Also rather good is the level of practicality and general easy-to-drive-ness of the e-Niro allied to which it has a range of 282 miles on a charge. So you should be able to cover most business journeys without requiring an electric top up, while enjoying the high standard of the e-Niro’s specification.

  • CO2: 0g/km
  • BIK tax band 20/21: 0%
  • Tax per month: from £0
  • EV Range: 282 miles

e-Niro

Tesla Model 3 Long Range AWD 4dr Auto

It’s the compact executive saloon every company car driver has been waiting for – the Tesla Model 3. Think of it as an all-electric rival to the BMW 3 Series and the Audi A4 but with few of the compromises on range that can sometimes accompany electric cars. The car has seating for five, accelerates to 60mph in 4.4 seconds and has an astonishing 348 mile range. Plus you have access to Tesla’s Supercharger network where you can get up to 80% charge in 30 minutes. Ride is on the firm side, so you need to be aware of that. But otherwise you’ll be driving a great company car in the 2020/21 tax year and paying the HMRC a big fat zero in BIK.

  • CO2: 0g/km
  • BIK tax band 20/21: 0%
  • Tax per month: from £0
  • EV Range: 348 miles

Model 3

Mercedes-Benz C300de AMG Line Edition 4dr 9G-Tronic Saloon

While most plug-in electric hybrid cars are petrol-electric plug-ins, Mercedes has combined the economy of a diesel along with the zero emission capability of a plug-in hybrid. You can choose between the saloon or elegant estate for a touch of real classy practicality. But what you’ll really value is the ability to deliver long distance mpg swished along by the nine-speed auto transmission and yet drive in electric mode around town – for up to 34 miles. For high mileage executives, the Merc delivers excellent BIK value, especially in this sporty AMG Line Edition specification.

  • CO2: 33g/km
  • BIK tax band 20/21: 0%
  • Tax per month: from £82
  • EV range: 34 miles
  • Fuel consumption: 235mpg

e300

Volvo XC40 1.5 T5 Recharge PHEV Inscription 5dr Auto

Volvo’s exquisite XC40 SUV now has even more reason to be on your company car shopping list: the T5 Twin Engine PHEV model combines a 1.5-litre three-cylinder petrol engine with an 82hp electric motor to provide emissions of 47g/km and a BIK rate of 12% for 2020/21. There’s an official zero emission range of some 28 miles but expect between 20-25 miles in actual usage. The battery can be recharged with a three-pin plug or from a home charger. Before you go anywhere, plug your destination into the satnav even if you know the way – it will help the car provide the greatest efficiency from the battery and therefore better mpg. If you want Scandi cool for your company car, then the XC40 is for you.

  • CO2: 47g/km
  • BIK tax band 20/21: 0%
  • Tax per month: from £79
  • EV range: 28 miles
  • Fuel consumption: 134.5mpg

Volvo

Getting the best out of a PHEV as a company car

In order to achieve the best efficiency from a PHEV company car, it’s important to use the battery and the zero emission mode. Not only does this help local air quality, but it will save on your pocket, too. Most PHEVs can cover your daily commute – or with a top up at work, will manage the return journey in zero emissions. So your commute should cost nothing in fuel and only pennies in electricity.

If you have any concerns or questions, please call us. Fleet Alliance has just become a Go Ultra Low Company, so we have real experience of electric cars and PHEVs and can provide solutions to most issues you might face.

If you’re looking for the best company car deals then check out our latest special offers or call us on 0345 601 8407 and we’ll be happy to assist.


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