Currently reading: The best company cars 2026 - driven, ranked and rated

Which models strike the best balance of driver appeal, everyday practicality and low benefit-in-kind tax bills?

One of the best perks of any job is a company car, and choosing a new one is not only an exciting prospect but also a good way of saving you money. 

Over the past few years, the company car landscape has undergone significant change, with strict emissions regulations and tax bandings pushing buyers away from petrol and diesel cars

In their place, electric and plug-in hybrid models have grown in popularity, their low benefit-in-kind (BIK) tax rates capturing the attention of company car buyers and fleet operators alike. 

For 2026/2027, the BIK rate for EVs sits at 4%. That's a 1% rise over the previous annual rate but, even with this small uptick in P11D value, still makes running an EV as a company car much cheaper than running a car privately. 

Better still, the current pool of BIK-busters is now broader than ever, ranging from small 250-mile electric superminis right up to large plug-in hybrid SUVs with electric-only ranges of more than 70 miles. 

Despite improvements in both battery technology and public charging infrastructure, not everyone wants to make the full transition to electric power. Plug-in hybrids, as well as full hybrids, remain the practical choice for company car users who tend to cover more motorway miles. 

Our road testers have driven and evaluated every new car on sale to help come up with a definitive guide to the best company cars, from ultra-efficient PHEVs to long-range EVs. 

To that end, we think the best overall company car is the Volkswagen ID 7, but read on as we rank the best models you can choose from today. 

The best company cars at a glance

car model best for p11d price electric range (wltp) bik rate (%) basic rate bik tax (20%) higher rate bik tax (40%)
Volkswagen ID 7 Long-distance executive cruising From £51,445 Up to 433 miles 4% £36 / month £73 / month
BMW iX3 Premium luxury electric SUV appeal From £53,250 Up to 500 miles 4% £42 / month £84 / month
Skoda Elroq Maximum value-for-money family EV From £33,970 Up to 373 miles 4% £24 / month £49 / month
Porsche Taycan Ultimate performance and prestige From £88,400 Up to 421 miles 4% £63 / month £127 / month
Skoda Superb Estate iV Cargo space and long-range PHEV flexibility From £41,580 Up to 81 miles (electric only) 7% £52 / month £104 / month

https://images.cdn.autocar.co.uk/
  • Design8
  • Interior9
  • Performance8
  • Ride & Handling9
  • Costs9

We believe the Volkswagen ID 7 is the best company car you can buy, and that's not just because of its ultra-low BIK tax banding. 

This EV is a brilliant all-rounder, offering a pleasant, spacious interior, excellent ride quality and surprisingly capable handling, making it a great choice for longer commutes. 

The ID 7 has a fine driving position and an intuitively responsive accelerator pedal. The combination provides a strong foundation for any car that aims to handle well.

Battery sizes range from 77kWh to 86kWh, and if you opt for the latter you can have a range of up to 433 miles. The larger 86kWh battery also offers charging speeds of up to 200kW, so those quick homeward-bound top-ups won't take forever. Even the smaller-battery cars can charge at up to speeds of 175kW. 

There’s also a choice of saloon and estate bodystyles, both with class-leading practicality. The standard saloon boasts a 532-litre boot, while the Tourer offers an even more cavernous 605 litres.

Volkswagen ID 7 Pro S Match Plus (86kWh)
BIK rate4%
Monthly BIK tax (20% band)£36.58
Monthly BIK tax (40% band)£73.17

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If your company car must double as a do-it-all family EV, have a long range and class-leading charging capabilities, you will struggle to find a more rounded product than the Neue Klasse iX3. 

Looks are indeed subjective, but in the metal the iX3 has an undeniable presence. The same can be said of the interior, which is markedly different to older BMW EVs like the i4 and i5.

While the steering isn’t brimming with feedback, there’s enough to know where you stand, and its weighting and responses are perfectly progressive, always feeling intuitive and reassuring.

The band below the windscreen that displays most of the cars information is well integrated and, while additional physical switchgear would aid usability, the 17.9in touchscreen is neatly configured and graphically strong. 

The entry-level, rear-wheel-drive iX3 40 makes a strong case for itself with a range of up to 395 miles, but we think it's worth paying the extra £7000 for the 500-mile iX3 50 xDrive.

Its excellent range is matched by its ultra-rapid charging speeds: hook it up to a 400kW charger and you will zap the 108kWh battery from 10-80% in 21 minutes. 

BMW iX3 50 M Sport xDrive (108.7kWh)
BIK rate4%
Monthly BIK tax (20% band)£42.00
Monthly BIK tax (40% band)£84.00
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  • Design8
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  • Performance9
  • Ride & Handling8
  • Costs9

You could argue that Skoda’s current model line-up is its best yet, all of its cars having the same sense of simplicity, usability and all-roundedness that makes them highly appealing in the current automotive landscape. 

The same can be said of the electric Elroq, which has clearly been engineered to both please and appease its driver.

It’s intuitive and pleasant both to drive and to interact with, with a cabin whose ambience has been lifted above the workaday, without detracting from its unpretentious character.

The 85 is the derivative of choice because it offers a real-world range of around 350 miles, and also qualifies for the UK government's £1500 Electric Car Grant. 

The Elroq’s cosseting ride and relaxed gait make it ideal who will use their company car for long-distance journeys, plus a charging speed of up to 175kW means you only have to wait 30 minutes for a 10-80% charge. 

Everyday versatility is good, too, and there’s more than enough rear passenger space for adults.

Sure, it’s not the most exciting to drive, but any dynamic shortcomings are certainly outshone by this car’s smooth, marture and well-rounded driving experience. 

Skoda Elroq 85 SE L (82kWh)
BIK rate4%
Monthly BIK tax (20% band)£24.66
Monthly BIK tax (40% band)£49.33

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  • Design9
  • Interior7
  • Performance10
  • Ride & Handling9
  • Costs8

Porsche’s luxury saloon is a great pick for company car drivers who are after a daily cruiser with the potential to deliver sports car-like performance levels.

It also comes in saloon, estate (Sport Turismo) and off-road estate (Cross Turismo) bodystyles. 

The most refined of the Taycans is the Cross Turismo, with softer springing and less of a performance-focused remit.

Easily the most premium option on our list, the Taycan comes with swathes of technology as standard, including comfortable air suspension, a heat pump, wireless phone charging and heated front seats. 

Driving range is spec-dependent. The entry-level Taycan offers the most range at 421 miles, while the staggeringly powerful Turbo GT has the lowest, at 344 miles, compensated by a 1026bhp powertrain and the ability to sprint from 0-62mph in 2.2sec.

No Taycan is slow, though: even the most basic model produces 429bhp and will hit 0-62mph in 4.8sec. 

Porsche Taycan Black Edition (105kWh)
BIK rate4%
Monthly BIK tax (20% band)£63.91
Monthly BIK tax (40% band)£127.83
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  • Design9
  • Interior10
  • Performance8
  • Ride & Handling9
  • Costs9

As a plug-in hybrid rather than a fully electric car, the Skoda Superb iV commands a slightly higher BIK banding of 7%.

However, we think it’s still well worth considering, and its monthly price matches some of the more expensive electric options available today. 

All versions of the Superb iV are rated for at least 73 electric-only miles, landing them in the 7% benefit-in-kind tax band.

The Superb scored a perfect five stars in our road test (albeit in diesel form), owing to its highly practical and spacious interior, its excellent everyday driveability and its affordable running costs.

Our recommended iV spec offers some impressive on-paper figures. It offers 81 miles of electric-only range, which means some drivers might never be required to consume any fuel at all – assuming they keep the battery charged up. 

The Superb is a car that supplies drivers with the essentials, and it does the vast majority of them brilliantly.

Skoda Superb Estate 1.5 TSI iV SE L
BIK rate7%
Monthly BIK tax (20% band)£52.25
Monthly BIK tax (40% band)£104.41
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  • Design8
  • Interior7
  • Performance9
  • Ride & Handling8
  • Costs8

The Tesla Model 3 is an incredibly popular company car, and few rivals can match its blend of technology, range and driving dynamics. 

Improvements in 2024 brought an ever longer range, with the entry-level RWD version offering 332 miles. The Long Range RWD, meanwhile, ups the stakes to 466 miles, which is highly competitive with rivals. 

The RWD model can rapid-charge at up to 170kW; the Long Range RWD will hit 250kW.

The Model 3 is practical, with a combined luggage capacity - that’s the main boot and a frunk – totalling 682 litres. There’s also a reasonable amount of space in the back for passengers, although it can’t quite match the larger Volkswagen ID 7 here.

Performance is another string to the Model 3’s bow. The RWD hits 0-62mph in 6.2sec, while the Long Range AWD drops that to 4.2sec. If you want truly ludicrous speed, look at the Performance AWD, which barrels on from 0-62mph in 2.9sec - faster than some hypercars.

Tesla Model 3 Long Range Rear-Wheel Drive Premium
BIK rate4%
Monthly BIK tax (20% band)£29.92
Monthly BIK tax (40% band)£59.91

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  • Design10
  • Interior9
  • Performance8
  • Ride & Handling9
  • Costs9

The impressive little Renault 5 is a good choice for company car drivers with shorter commutes or for those who prefer nipping around in smaller cars.

It also commands a 4% BIK rating, which, thanks to its low list price, means even more money can be saved every month if purchased via a compnay car scheme. 

Drivability is well resolved, with an accelerator pedal that's nicely progressive in the standard mode.

This electric supermini offers a choice of two batteries, measuring 40kWh and 52kWh and offering 190 and 250 miles of range respectively.

Urban economy is excellent, but those with longer commutes may be left disappointed by the 5's cruising economy. 

In Urban Range spec the 5 produces 121bhp, while the Comfort Range version manages a punchier 148bhp – enough to propel it from 0-62mph in 8.2sec. 

For the price, though, keener drivers will be most impressed by the 5's engaging and overall excellent ride-and-handling balance.

Renault 5 E-Tech Electric Comfort Range Iconic Five+ (52kWh)
BIK rate4%
Monthly BIK tax (20% band)£19.75
Monthly BIK tax (40% band)£39.50
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  • Design8
  • Interior8
  • Performance9
  • Ride & Handling7
  • Costs8

The Tesla Model Y is a former UK best-seller, and we would wager that a significant chunk of those cars were on fleets. 

This electric SUV is one of the most practical cars on sale full stop, never mind within its segment. Its huge boot measures 854 litres, plus there’s vast underfloor storage and a large frunk.

The Model Y doesn’t have class-leading knee or head room, but they’re good enough; and because the bench is set fairly high, the seating position is comfortable.

Range is competitive, with base models offering 314 miles and Long Range versions 391 miles. Potent performance is similar to that of the smaller Model 3 saloon, with the potential to hit 62mph from rest in 5.4sec. 

Tesla Model Y Premium Long Range RWD
BIK rate4%
Monthly BIK tax (20% band)£32.62
Monthly BIK tax (40% band)£65.25
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  • Design8
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There’s more to the new CLA Electric than just an impressive range. Yes, it will cover a formidable 483 miles on a charge, but it's also brimming with technology, pleasant to drive and competitively priced. 

Prices start from around £39,000, but you will have to find at least £43,250 for a model with a 483-mile range.

Point the CLA at a corner and it makes the most of its rear-drive layout. The steering is nicely uncorrupted, intuitively geared and weights up a little as you load up the chassis.

Charging speeds peak at 320kW, which means you can boost its battery from 10-80% in around 22 minutes.

The CLA EV's 800V electrical architecture, new inverters and two-speed gearbox also help it in terms of efficiency, too, with 4.0mpkWh achievable in mixed use. 

It's smooth and intuitive to drive; has a comfortable, supple ride that ties in with its pseudo-luxury persona; and handles with predictability and accuracy for good measure. 

Perhaps a more rational choice than an emotional one, but still, the CLA EV has the hallmarks of being not just a good electric company car but a good car full stop. 

Mercedes-Benz CLA Electric 250+ Sport Saloon (85.5kWh)
BIK rate4%
Monthly BIK tax (20% band)£28.75
Monthly BIK tax (40% band)£57.58

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  • Design10
  • Interior8
  • Performance8
  • Ride & Handling9
  • Costs8

Wolfsburg’s enduring hatchback slightly lost its way when entering its eighth generation. Its interior lacked usability and it didn’t look as neat and tidy as the Mk7. 

Thankfully Volkswagen erased these weaknesses for the facelift by adding a more user-friendly multimedia system, refining its looks and dramatically overhauling the PHEV derivative to improve its electric-only range and charging capabilities. 

It’s not as light on its feet or as naturally nimble as some smaller hatchback rivals, but a comfort-focused rather than sporting dynamic brief does appear to make room for it to impress on the road in any case.

You can have a 268bhp sporty GTE version, but we would pick the standard 201bhp 1.5 TSI eHybrid, thanks to its mightily impressive 88-mile EV range.

That’s more like 70 miles in the real world, but it still allows you to cover meaningful distances on electric power alone – something that rivals like the Mercedes-Benz A250e can’t match. 

In terms of refinement, versatility, drivability and all-round completeness, the Golf is a cut above. It steers predictably, has poised, tidy handling and rides comfortably. 

While it’s a little dearer than it used to be, the Golf remains at the forefront of its class. 

Volkswagen Golf 1.5 TSI eHybrid Style
BIK rate7%
Monthly BIK tax (20% band)£43.50
Monthly BIK tax (40% band)£87.00

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HOW TO CHOOSE THE BEST COMPANY CAR

When choosing the best company car, you should consider the following: 

Method of propulsion

Why it matters: Company cars are available with all types of powertrains, but varying tax rates mean some are far cheaper to buy than others. 

  • Electric: EVs are by far the cheapest options for company cars, incurring a BIK tax rating of just 4%.
  • Petrol and diesel: Pure-ICE cars attract much higher bandings (up to 37%), therefore are more expensive to tax on the BIK scale. 
  • Plug-in hybrids: PHEVs are a decent stopgap for those not ready to go all-electric. Many can travel far on electric power alone and attract less than 10% BIK tax. 

Size

Why it matters: Too small and you won’t have enough space; your car might not be suited to your job role, especially for those with big loads to carry. 

  • Luckily, cars of all sizes can be selected as a company car. 
  • Larger vehicles can accommodate a higher number of passengers. For example, the Kia EV9 can seat up to seven people, and it benefits from just 4% BIK tax. 

Driving range

Why it matters: If you have a long commute, you will want a car that can travel long distances reliably. 

  • Diesels offer the longest driving ranges, although they're very expensive in terms of BIK tax.
  • PHEVs are great options for drivers who want to maximise distance and electric-only driving. Some can even travel in excess of 70 miles on electricity alone, meaning you might never need petrol or diesel if you keep it charged. 
  • EVs will have varying driving ranges depending on weather conditions, air-con use, outside temperatures and your driving style. However, many are now comfortably capable of exceeding 300 miles without needing a charge. 

HOW WE TESTED AND SELECTED

When reviewing company cars, we evaluate them against a range of practical, technical and user-focused criteria, as well as considering their monthly costs using the UK government's benefit-in-kind tax rates. 

1. Efficiency

Efficiency is important in any car, but company car drivers often have long commutes and will hit high mileages. When reviewing cars, we compare real-world efficiency measurements with the WLTP figures that are made up of laboratory tests. All the cars on this list are broadly efficient and long-legged. 

2. Interior comfort and space

We measure leg room, head room and storage space. Cabin noise levels at motorway speeds and ride comfort on various road surfaces are also assessed.

3. Performance

We evaluate acceleration, braking and cornering across city, suburban and motorway routes. Acceleration is important here, for real-world scenarios such as getting up to speed when joining a motorway.

4. Technology

Infotainment systems are tested for ease of use, responsiveness and smartphone integration (Apple CarPlay and Android Auto). We evaluate ADAS (adaptive cruise control, lane-keeping assistance, automated parking) to check if they have been configured to suit British roads.

5. Build quality

We inspect fit and finish, panel alignment and interior materials. We look and listen for any rattles, squeaks or cheap-feeling components that might annoy.

6. Practicality

We assess ease of entry and exit, visibility, turning circle and parking aids. We also test features such as powered tailgates, storage compartments and child-seat installation points (Isofix).

7. Ownership costs

We review running costs, including benefit-in-kind tax rates and monthly costs, plus fuel and charging. 

FAQs

What is a company car?

A company car is a vehicle that a company provides to employees, usually for business use - but sometimes for personal use, too. Company cars are considered a valuable job perk or "benefit in kind" (BiK), especially for roles that require frequent travel.

How is benefit-in-kind (BiK) calculated?

Company cars are taxed because they're considered a non-cash benefit. This tax is called benefit-in-kind and depends on the following factors: the car's list price (P11D value), CO2 emissions output, the employee's income tax bracket (either 20% or 40%), and the type of fuel the vehicle uses (petrol, diesel, electric). 

What are the benefits of company cars?

There are several benefits to having a company car, most significantly, cost-of-ownership savings. You don't have to pay the full cost of the car, insure it or maintain it yourself, for example.  Another benefit is convenience. Your company will handle the administrative tasks and financial responsibilities of the car for you.  Plus, company cars are often replaced every few years, giving the employee access to a newer model with the latest technology and safety features

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Sam Phillips

Sam Phillips
Title: Staff Writer

Sam joined the Autocar team in summer 2024 and has been a contributor since 2021. He is tasked with writing used reviews and first drives as well as updating top 10s and evergreen content on the Autocar website. 

He previously led sister-title Move Electric, which covers the entire spectrum of electric vehicles, from cars to boats – and even trucks. He is an expert in new car news, used cars, electric cars, microbility, classic cars and motorsport. 

Sam graduated from Nottingham Trent University in 2021 with a BA in Journalism. In his final year he produced an in-depth feature on the automotive industry’s transition to electric cars and interviewed a number of leading experts to assess our readiness for the impending ban on the sale of petrol and diesel cars.