Best company cars to beat BIK in 2024/2025

Best company cars to beat BIK in 2024/2025

Posted by

Martin Brown

April 2024

The number of fleet cars on the market is booming.

During the first quarter of 2024, fleet and business registrations accounted for 62% of the market – an 8% increase in just 12 months.

Fleets are investing in the latest vehicles, especially electric vehicles (EVs), plug-in hybrids (PHEVs) and, to a lesser extent, hybrid electric vehicles (HEVs).

It’s little wonder that fleet sales are surging: pure electric cars are proving extremely popular with company car drivers because the benefit in kind taxation on these vehicles is so low.

Although the Spring Budget 2024 provided no indication of Government thinking beyond the next three years, we know that taxation on EV company cars is to remain consistently low. For the new tax year (2024-25) company car tax remains at 2% for EVs; in 2025-26, it will increase by 1%, and then in 2026-27, it will rise by a further 1% to 4% and in 2027-28 it will increase again by 1% to 5%.

So, the medium-term outlook for company car drivers in EVs remains highly tax advantageous.

What about the tax outlook for PHEVs and Hybrids?

If you’re not ready to go full electric just yet, the plug-in hybrid electric vehicle (PHEV) still has lower emissions than pure petrol or diesel cars – including hybrid cars. For tax, they are classed as Ultra Low Emission Vehicles if they emit less than 75g/km of CO2.

Many new PHEVs can run for about 40 miles on pure electric power. When the battery is low, the petrol engine kicks in to take over and can also charge the battery. Hybrid cars, on the other hand, don’t offer as much pure electric range due to their smaller battery.

You can choose to plug a PHEV in to recharge at home and then do all your shorter journeys in electric-only mode. Many manufacturers offer a good choice of PHEVs, and with each new generation, we’re seeing more electric-only range. Allowing a PHEV to run electric-only as much as possible is the way to get the best fuel consumption.

With lower CO2 emissions, PHEVS offer advantageous levels of benefit in kind. However, EVs, with their longer electric-only range, are the best solution for keeping benefit-in-kind rates as low as possible.

For example, the new Toyota C-HR petrol plug-in hybrid emits 19g/km and can run for up to 41 miles in pure electric mode. It falls in the fourth tier of tax rate for emissions up to 50g/km of CO2. For 2024/2025, that’s an 8% benefit in kind. By contrast, the C-HR hybrid emits 105g/km in its base version, which puts it at 26% in 2024/2025.

From 2025-2026 Ultra Low Emission Vehicles will see a 1% yearly stepped rise until 05 April 2028 (to a maximum of 21%) while the benefit in kind for cars above 75g/km increases by 1% in 2025-26 and continues at that level until the end of the 2027/28 tax year.

What about the role of salary sacrifice and company cars?

Company car tax and choosing the right EV are important considerations for those drivers who can lease a car through a salary sacrifice programme.

As the name implies, salary sacrifice means an employee ‘sacrifices’ some of their gross salary to pay for the car. This reduces the amount of income tax or Class 1 National Insurance Contributions (NIC) on the portion of salary sacrificed – these considerable savings make the lease of an EV worthwhile.

However, because the taxman sees the car as a benefit, salary sacrifice takers are subject to benefit-in-kind tax. So choosing an EV—or a PHEV—is critical to making such schemes a real benefit to the driver.

So which company cars should you choose in 2024-25?

Here are our suggestions for the top EVs and PHEVs in 2024 and a couple coming up in the next 12 months or so that are worth watching out for. The tax quoted is calculated using our company car tax calculator using a 20% salary rate.

 

Best Electrified Company Cars

BMW iX2 66kWh eDrive20 M Sport 150kW

BMW iX2 66kWh eDrive20 M Sport 150kW

The new iX2 is an electric SUV closely related to the iX1, but with a sportier coupé-like profile. It’s the first all-electric version of this popular model. Available with two or four-wheel drive, the iX2 is relaxing rather than sporty to drive. There’s space for a family of four and luggage, so long as the teenagers aren’t too tall. The cabin has a sleek and modern design and has features such as live video streaming when parked. It’ll charge at a 130kw ultra-rapid charge point to deliver 10-80% charge in 29 minutes.

  • CO2: 0g/km
  • BIK tax band 24/25: 2%
  • Tax per month: from £17.19
  • EV Range: 283 miles

Peugeot e-5008

Peugeot e-5008

This striking looking SUV from Peugeot has two essential features for company car drivers with families. First, it has seven seats – the only electric SUV to offer such a facility. Second, the top model has a range of over 400 miles on a charge, so going on a family holiday will only require the odd top-up stop. The third essential feature is that it’s battery electric, so company car tax is low—which means more to spend on the family. The car can be ordered now, with deliveries expected around September.

  • CO2: 0g/km
  • BIK tax band 24/25: 2%
  • Tax per month: from £n/a
  • EV Range: 410 miles

Genesis GV60 77.4kWh Premium 168kW 229PS Single Motor RWD

Genesis GV60 77.4kWh Premium 168kW 229PS Single Motor RWD

We make no apologies for including the Genesis GV60 as one of our favourites for the second year running. The luxury arm of Hyundai, the Genesis brand, only arrived in the UK in 2022. The GV60 shares many features with the Hyundai Ioniq 5 and Kia EV6, such as long-range and impressive tech. Talking of tech, the GV60 is claimed to be the first car in the world with face recognition technology, so you can look at it to unlock it. It also has superfast recharging.

  • CO2: 0g/km
  • BIK tax band 24/25: 2%
  • Tax per month: from £17.95
  • EV Range: 321 miles

MINI Cooper

MINI Cooper 41kWh E Classic 135kW

There’s a new MINI on the block, the fourth generation built by BMW. This one’s less retro and more hi-tech, with a dinner plate-sized animated central screen. All versions offer more range and cost less than the previous version, although five minutes playing with the options list bumps the price as usual. As before, the electric MINI has three doors but was designed as a pure electric vehicle, so it’s slightly shorter while offering more room inside than a conventional petrol or diesel.

  • CO2: 0g/km
  • BIK tax band 24/25: 2%
  • Tax per month: from £9.98
  • EV Range: 190 miles

Porsche Macan 95 kWh 4 Electric 285kW

Porsche Macan 95 kWh 4 Electric 285kW

This is top money, but many people will want the first-ever all-electric Porsche Macan very badly. The first petrol-powered version of the mid-size SUV was a huge hit. The new EV Porsche can be supercar fast (up to 630bhp), and should you feel daring, its twin-motor mode offers some serious off-roading. The range is also seriously good, thanks to a large battery. Like the Taycan, it has 800-volt technology, so can charge from 10-80% in as little as 21 minutes on ultra-rapid chargers.

  • CO2: 0g/km
  • BIK tax band 24/25: 2%
  • Tax per month: from £23.27
  • EV Range: 380 miles

The Renault 5 e-Tech

One to watch? The Renault 5 e-Tech

Nobody’s driven a new Renault 5 e-Tech yet, but when it was launched at the Geneva Motor Show in March, it was “ooh la la”! Retro yet modern. You’ll recognise its friendly face if you’re old enough to remember the 70s original. The range is very good for the projected price – said to be sub £25k – and it’s full of original touches like a charging indicator on the bonnet in the shape of a number 5. Then there’s the optional wicker baguette holder (yes, really), which may appeal more to French buyers. If you want something hotter, Alpine brings out the A290 later this year, based on the 5 but with many changes. With high demand in France, right-hand drive 5s and Alpines are not due in the UK until 2025. You can register an interest now.

 

Best PHEV company cars

Citroën C5 X PureTech Plug-in Hybrid Plus

Citroën C5 X PureTech Plug-in Hybrid Plus

Closely related to the Peugeot 408, the Citroën C5 X brings back an old name with a new twist. It’s a high-riding estate, but far from boxy, and majors on a plush interior and a smooth rather than sporty ride due to Citroën’s advanced Comfort Active Suspension. The PHEV version is by far the fastest, with a 178bhp petrol engine and 109bhp electric motor. Like all versions of the C5 X, it has an eight-speed automatic gearbox.

  • CO2: 33g/km
  • BIK tax band 24/25: 12%
  • Tax per month: from £76.33
  • EV-only range: 38 miles
  • Weighted combined fuel consumption: 236mpg

Cupra Formentor 1.4 e-HYBRID V1 DSG-auto 204

Cupra Formentor 1.4 e-HYBRID V1 DSG-auto 204

Cupra is a relatively new Spanish brand spun out of SEAT. It majors on performance and unique looks but with the underpinnings of the Volkswagen Group. While Cupra is going electric, the Formentor, which launched in 2021, is pure petrol. It’s a medium-sized crossover with space for the family but has lower, more rakish looks than an SUV. You’ll certainly stand out from the crowd with one. There are four Formentor PHEVS to choose from, with two engine power levels: 204 or 248bhp. Both have 1.4-litre engines and six-speed automatic gearboxes. An electric-only range of 38 miles is competitive.

  • CO2: 27g/km
  • BIK tax band 24/25: 12%
  • Tax per month: from £78.22
  • EV-only range: 38 miles
  • Weighted combined fuel consumption: 235mpg

 Honda CR-V 2.0 i-MMD e:PHEV Advance Tech 184PS

Honda CR-V 2.0 i-MMD e:PHEV Advance Tech 184PS

The latest Honda CR-V is a large family-sized SUV that comes as a petrol hybrid or, for the first time, as a plug-in hybrid. The 181bhp two-litre four-cylinder petrol engine is paired with a 17.7kWh battery for front-wheel drive. Unusually, the automatic gearbox has a setting for towing. There’s a huge boot, and electric front seats are standard. Leather with both heating and cooling on the top trim (the only one available with the PHEV) is also standard. A panoramic glass sunroof is also standard.

  • CO2: 18g/km
  • BIK tax band 24/25: 8%
  • Tax per month: from £71.92
  • EV-only range: 51 miles
  • Weighted combined fuel consumption: 353mpg

 Toyota C-HR Plug-In 2.0 VVT-i Excel 223hp

Toyota C-HR Plug-In 2.0 VVT-i Excel 223hp

Toyota brought hybrid technology to the world, and millions of Prius taxis can’t be wrong. This second-generation CH-R adds a PHEV. Size-wise it’s a small SUV, but with coupé looks. All models have a reversing camera and safety systems, such as an alert if you open a door in the path of a cyclist. Although most often seen on pure EVs, this Toyota PHEV has a heat pump, which is a more efficient way of heating the interior while saving the battery. The battery can be charged at a rate of 7kW, typical of a home charger, and can go from flat to full in 2 ½ hours.

  • CO2: 19g/km
  • BIK tax band 24/25: 8%
  • Tax per month: from £56.74
  • EV-only range: 41 miles
  • Weighted combined fuel consumption: 313mpg

Range Rover 3.0 P460e PHEV Autobiography

Range Rover 3.0 P460e PHEV Autobiography

This PHEV is a very large slab of very British luxury that can now whirr silently around the town for 50-plus all-electric miles and can still climb a mountain when asked. The combination of a 3.0-litre six-cylinder turbocharged petrol engine and electric motor gives 443bhp in the P440e and 503bhp in the P510e. Supreme comfort is promised by air suspension and Active Noise Cancellation via speakers cleverly located in the headrests. At home, it will take around five hours to charge to full. Orders for this electrified Range Rover open in June 2024.

  • CO2: 18/km
  • BIK tax band 24/25: 5%
  • Tax per month: from £112.34
  • EV range: 71 miles
  • Weighted combined fuel consumption: 386mpg

 

One to watch: new Volkswagen Passat PHEV

The Volkswagen Passat has been a staple of many fleet drivers. While many VW models have come and gone over the years, the Passat manages to hang on as a large estate. This is good news as many manufacturers are dropping estate models from their ranges (we’re looking at you, Volvo). For now, the range is mild-hybrid only, but summer brings a PHEV version that offers 148bhp, 201bhp and 268bhp petrol engines coupled to a 19.7kWh battery. Electric-only range is billed at an impressive 62 miles.

If you’re looking for the best company car deals, check out our latest special offers, or view our electric car salary sacrifice page to learn more about our unique employee benefits scheme. And don’t forget – we’re always happy to assist you.


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