Best company cars to beat BIK in 2023/2024

Best company cars to beat BIK in 2023/2024

Posted by

Martin Brown

April 2023

Company cars remain an attractive benefit for employees, particularly with the cost savings available from electric models.

Fleet Alliance’s order books finished 2022 at record levels for electric vehicles (EV), with pure-electric models accounting for one in every three vehicles; a significant indicator of the strength of the plug-in car market. Meanwhile, a further third of 2022’s order book were ultra low emission vehicles such as plug-in hybrid vehicles.

With a fully maintained car expensed by the company, and only low-cost benefit in kind (BIK) car taxation paid for by the employee, it’s easy to understand the enduring appeal of a company car, particularly a plug-in model.

The taxation system has been an important step in increasing numbers of electric vehicles on UK roads. In 2022, market share for pure-electric models increased 40% from the previous year to 17% of new cars sold, and the trend is continuing to rise. Expectations are that similar growth will be seen during 2023.

Add in plug-in hybrid vehicles and one in four new cars registered in the UK is able to be charged from a plug. And it’s company car drivers that are helping push this change forward.

Is a cash option a better alternative than a company car?

We’re not convinced here at Fleet Alliance, especially since the company car tax system has been designed in recent years to encourage uptake of ultra-low emission vehicles. We’ve looked at this issue in a previous blog and found that 45% of cash takers pay more for their car than their cash allowance (see Cash takers – why is it costing you money?).

We would suggest a more appropriate method of funding is to opt for a salary sacrifice car to take advantage of the current low company car tax associated with plug-in cars.

Changes brought in for the start of the 2020/21 financial year saw benefit-in-kind taxation on pure-electric models set at 0%, rising to 1% in 2021/22, and last financial year it doubled to 2%. It has now been set at that until at least April 2025 for models with zero carbon tailpipe emissions, allowing company car drivers to save thousands each year in personal tax.

Ultra-low emission vehicles – plug-in hybrid electric vehicles (PHEVs) – also have attractive BIK rates (at least for those with emissions up to 50g of CO2), although not to the same level as pure-electric cars. Nevertheless, with company car tax rates of between 2% and 14% in 2023/24, depending on CO2 emissions (below 50g/km) and the car’s electric-only range, PHEVs are a competitive tax proposition for drivers who feel full electric remains a step too far at the present. PHEVs

To help you find out which models are worth looking at, 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.

We’ve split them into electric cars (EVs) and plug-in hybrid electric vehicles (PHEVs) since we recognise that not everyone is fully prepared, or able, to go fully electric. At least just now. So here’s our list – six EVs and six PHEVs.

Best EV Company Cars

MG4 EV SE Long Range

MG has quickly established a reputation for offering excellent value-for-money electric vehicles, and now it’s building on that with the MG4. Available only as an EV, the 4 is a useful, family-sized hatchback, with a range of more than 280 miles available from a charge. Far from the original pared-back, agricultural early offerings, the 4 has seen MG step up a level and compete with traditional mass-market rivals on an equal footing – only cheaper. An electric family hatch for supermini money, the MG4 is one of the most affordable electric cars on the road. Recently named the UK Car of the Year.

  • CO2: 0g/km
  • BIK tax band 22/23: 2%
  • Tax per month: from £9.81
  • EV Range: 281 miles

Skoda Enyaq iV 80 Sportline Plus

If practicality is a priority, there are few better cars to look at than Skoda’s Enyaq iV. Making the most of its electric architecture, the Enyaq iV offers a huge amount of interior space for its road footprint, as well as all the other “Simply Clever” touches that make a Skoda the car of choice for anyone who has a family. Add in a range of up over 300 miles, and there’s no compromise with driving range either.

  • CO2: 0g/km
  • BIK tax band 23/24: 2%
  • Tax per month: from £15.96
  • EV Range: 333 miles

Genesis GV60 RWD Premium

The Genesis GV60 is a stylish premium SUV that’s sportier and more luxurious than the Kia EV6 and Hyundai Ioniq 5 with which it shares a platform and powertrains. This puts it amongst the best EVs on the market, but with a different focus for those that want something more up-market than its group stablemates. A beautiful interior will win many drivers over, but it’s more than style over substance – the GV60 will cover more than 320 miles on a charge, and top up from 10-80% in less than 20 minutes on a high-power charger. A true long-distance premium EV.

  • CO2: 0g/km
  • BIK tax band 23/24: 2%
  • Tax per month: from £17.95
  • EV Range: 321 miles

BMW i4 eDrive40 Sport

If only there were an all-electric version of the BMW 3 Series, eh? Well now there is, effectively. The BMW i4 packs in a huge range into its executive offering, capable of covering more than 350 miles on a charge in its longest-range form. Add in the driving dynamics that live up to BMW expectations, and a familiar if tweaked executive saloon style, and it’s clear that BMW’s “new 3 Series” is in fact the i4.

  • CO2: 0g/km
  • BIK tax band 23/24: 2%
  • Tax per month: from £18.71
  • EV Range: 366 miles

Polestar 2 Long Range Single Motor

This stylish Swedish crossover fastback ticks so many boxes for company car drivers, it should come as no surprise that they are now a familiar sight on UK roads. Sitting halfway between a Tesla Model 3 saloon and Tesla Model Y SUV, the premium Polestar 2 shares parts with Volvo EVs for a performance-orientated driving experience. All versions come with a long range and plenty of pace, but the Long Range Single Motor is, as the name suggests, the long range champion of the line-up, offering a battery just shy of 400 miles on a charge.

  • CO2: 0g/km
  • BIK tax band 23/24: 2%
  • Tax per month: from £16.30
  • EV Range: 394 miles

Volkswagen ID.5 GTX Max Pro

Volkswagen has launched its GTX badge on the ID.5, which should tell you a lot about how important it expects the coupe-SUV to be for the German giant. GTX might not mean much to you, but it joins the GTI, GTD, and GTE performance badges for petrol, diesel, and PHEV models respectively – GTX is a GTI with electric power. Packaged in a popular coupe-SUV body, the ID.5 GTX still achieves just over 300 miles on a charge, despite hot-hatch performance figures. It will also top-up 200 miles in half an hour’s charge, and shows how a change in focus can offer vastly different cars, considering the ID.5 GTX and Skoda Enuaq iV above are based on the same platform.

  • CO2: 0g/km
  • BIK tax band 23/24: 2%
  • Tax per month: from £19.22
  • EV Range: 311 miles


Best PHEV company cars


Mercedes-Benz C300e Sport

One of the top executive saloons on the market also has a first class PHEV in its line-up. The C 300 e has a huge electric-only range for a plug-in hybrid, reducing BIK costs and increasing efficiency. Focusing on comfort and equipment, the latest C-Class range feels like it belongs in the tier above such is its overall feeling of quality and refinement. Good performance figures belie its handling set-up, which is tailored to comfort rather than dynamic driving. The engine is quiet when running, and the automatic transmission is exactly what you would expect from a Mercedes – excellent.

  • CO2: 13g/km
  • BIK tax band 23/24: 8%
  • Tax per month: from £64.87
  • EV range: 62 miles
  • Fuel consumption: 471mpg

Volvo V60 T6 Recharge PHEV AWD Plus Dark Theme

Estate cars often make more sense than SUVs, especially where fleet policies don’t allow such body styles, and there are few better than the Volvo V60, especially as it’s available in PHEV form. The T6 is a bit of a ‘sleeper’ producing 340hp in a sensible but stylish shape. An electric only range of up to 54 miles means many daily trips can be covered on electric power alone, and it also helps reduce CO2 emissions for a very low BIK rate.

  • CO2: 18g/km
  • BIK tax band 23/24: 8%
  • Tax per month: from £67.84
  • EV range: 54 miles
  • Fuel consumption: 313mpg

Skoda Superb iV 1.4 TSI Sportline Plus Hatch

The Skoda Superb has long been a company car for those who know what they’re looking for. Offering huge levels of space – particularly in Estate form – a high-quality interior, and excellent levels of refinement, the Superb is a match for established premium models, but at significantly lower cost. Offered with a plug-in hybrid option, the Superb iV is able to cover 34 electric-only miles for low BIK costs, combining a 1.4 litre petrol engine and electric motor.

  • CO2: 34g/km
  • BIK tax band 23/24: 12%
  • Tax per month: from £89.56
  • EV range: 34 miles
  • Fuel consumption: 188 mpg

Cupra Formentor e-Hybrid VZ1 245 DSG

Looking for something sensible but sporty, stylish but sound? The Cupra Formentor is a great left-field pick. The young brand has all the benefits of being unfamiliar to most, yet is built on SEAT – and therefore VW Group – underpinnings, so it’s a known quantity. As Cupra is SEAT’s sporty off-shoot, the Formentor crossover has a performance focus, and a sprint time of 7.0 seconds 0-62mph. Yet it also covers 38 miles on a charge, from a 1.4 litre petrol engine and electric motor combining to produce up to 245hp – or 204hp should you want a more affordable, less sporty model.

  • CO2: 33g/km
  • BIK tax band 23/24: 12%
  • Tax per month: from £81.39
  • EV range: 38 miles
  • Fuel consumption: 188mpg

Kia Sportage Plug-in Hybrid GT-Line

There are few better all-rounders on the market at the moment than Kia’s Sportage, especially when customers pick the PHEV powertrain. The Sportage is a practical family-sized SUV, but thanks to well set-up driving dynamics and a distinctive design, there is none of the dullness that could come with such a sensible car. Kia’s reputation for build quality and reliability look to have been continued with the Sportage, and by offering a 43 mile electric-only range, BIK rates drop to some of the lowest figures for any model with an engine.

  • CO2: 25g/km
  • BIK tax band 23/24: 8%
  • Tax per month: from £53.13
  • EV range: 43 miles
  • Fuel consumption: 177mpg

Range Rover P440e SE

A plug-in hybrid Range Rover could be just about all the car you would ever need. It offers a 6.0 second 0-62mph time, but with levels of luxury to challenge a Bentley. And all able to go from the courtyard of Buckingham Palace to the middle of a jungle – even if either location is unlikely for most Range Rovers that roll off the production line. A straight six petrol engine and electric motor produce a combined 440hp, and a large battery allows for an electric-only range of up to 70 miles on a charge.

  • CO2: 19g/km
  • BIK tax band 23/24: 5%
  • Tax per month: from £90.27
  • EV range: 70 miles
  • Fuel consumption: 353mpg

Getting the best out of a PHEV as a company car

To make the most of a PHEV as a company car, charging is important. Allowing it to function in electric mode as often as possible means the car can operate more as an EV than a petrol or diesel model, significantly reducing fuel costs and emissions. 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.

It’s estimated that to be really effective for both drivers and companies, PHEVs should be driven in zero emission mode for at least 65% of the time.

If you have any concerns or questions, please call us. Fleet Alliance is 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.

Fleet Alliance is also a member of EV100, a global collection of forward looking companies that are committed to accelerating the transition to electric vehicles. We can help you transition your fleet to electric where it’s appropriate using our own experience with the Fleet Alliance fleet.

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.

You also might like…

If you liked this article then check out our posts about similar topics

HMRC changes its decision on double cab taxation

Having last week announced that double cabs would undergo a significant change in tax treatment following a 2020 Court o...

Benefit-in-kind changes reclassify double cabs as cars not vans from July 2024

The benefit in kind treatment of double cab pick up trucks will change significantly from 01 July 2024 HMRC has decid...

Are you struggling to get the benefits promised for your fleet management?

Managing a large car and van fleet can be a Herculean task, especially as it's not the focal point of your business The ...

Fleet Alliance: the sustainable mobility provider

How do you encapsulate what a business is What’s the reason for its existence   It sounds almost existential - bu...

An easy guide to Electric Car Salary Sacrifice (2024)

Electric car salary sacrifice: it’s the lowest cost way to drive an electric car It sounds like there should be a cat...

Fleet outsourcing: five reasons why you should embrace it

What are the benefits of outsourcing my fleet management and why should I outsource to Fleet Alliance Also, what makes y...

Successive award wins put Fleet Alliance out in front for fleet management

It’s always a good moment when you win an industry award It’s palpable recognition for the team’s hard work, perse...

Star cars at the LA Show

While manhole covers were being sucked up at the Los Angeles Formula 1 Grand Prix (resulting in urgent track repairs and...

Ready to make the management of your fleet more efficient?

Request a call back

Or Call Us On: 0345 601 8407
Schedule a call back