Currently reading: The best PHEV company cars - 10 hybrids that will cut your BIK bill

Low benefit-in-kind tax rates and an engine to fall back on: these are the must-have PHEV company cars

If you’re a business driver - or a potential business driver - looking to get the most bang for your buck, a plug-in hybrid company car might just be perfect for you.

Plug-in hybrids, or PHEVs, potentially offer the best of both worlds. On one hand, you get some of the lower tax benefits that come with electric cars. On the other, you still have the reassurance of a traditional petrol or diesel engine for those longer journeys. No range anxiety, no stress, just flexibility.

PHEVs combine three key elements: a regular combustion engine, an electric motor and a drive battery. Unlike standard hybrids, PHEVs have much larger batteries that you can charge up, just like in a fully electric car. 

This means you can drive purely on electric power for around 30-75 miles, depending on the car; then when the battery runs out, the petrol or diesel engine takes over, so you’re never left stranded.

For company car drivers, the big win here is lower official CO2 emissions figures, which translate to seriously reduced benefit-in-kind (BIK) tax bills. To put things into perspective, many traditional petrol or diesel cars are taxed at around 27% of their value; with a PHEV you’re looking at anywhere between 6% and 15%, depending on the car’s electric-only range. The farther it can travel without using fuel, the less you will pay in tax.

Whether you’re clocking up motorway miles as a sales rep or looking for something a bit more executive as a CEO, there’s a PHEV out there for you.

https://images.cdn.autocar.co.uk/BMW 530e
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Our choice: BMW 530e

The BMW 5 Series has been a company car star ever since the original E12 generation made its debut more than 50 years ago. Now in its seventh generation, this 'G60' version has swelled in size and stature, but behind the vast front grille and imposing proportions, it retains the same mix of talents. 

Closer in size to the 7 Series luxo barge, the interior of the 5 Series is generously proportioned, slickly designed and packed with kit. The needlessly complicated infotainment will make you want to set fire to it, but the hushed refinement and exceptional comfort will help lower your blood pressure. And despite its land yacht exterior dimensions, the 530e handles with typical BMW adroitness, with meaty steering and just a smidge of rear-drive adjustability. 

There are no diesel engines, but you can choose a number of mild-hybrid petrols and even the fully electric i5. However, we’d plump for the 530e plug-in hybrid that combines a turbocharged 2.0-litre petrol with a 181bhp electric motor for 295bhp and a 0-62mph time of 6.2sec. Better still, with a 19.2kWh battery, it’ll travel over 60 miles in EV range, meaning a tax-friendly benefit-in-kind (BIK) rating of just 8%.

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Our choice: Skoda Superb iV

Superb by name and nature, Skoda’s large family car features the brand’s typical blend of value, practicality and dependability, the big hatch now offers an extra injection of style and upmarket appeal. What’s not to like?

Sleek looks and an upmarket interior give the Superb greater presence, while no rival offers more interior space for people and luggage. The 25.7kWh battery helps push the pure-electric range beyond 60 miles, making it more useful and dropping it into the 9% BIK bracket.

The 204bhp petrol-electric powertrain delivers adequate performance, even if the blending of the two motive sources isn’t the smoothest. 

Still, it’s refined enough, complementing the Superb’s low noise levels and reasonably pliant ride. Long motorway journeys are the Czech machine’s bread and butter, but with accurate handling and decent body control, it’s far from out of its depth when pushing on through a series of corners. 

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Our choice: Mercedes-Benz C300e

Sometimes only the three-pointed star will do when it comes to impressing your fellow climbers on the corporate ladder. An on-road shorthand for success in the board room, a Mercedes in any form still sends out all the right messages to co-workers and clients alike.

The C300e adds to this appeal with its neatly integrated plug-in drivetrain, which blends plenty of punch with the sort of running costs that will keep fleet managers happy. Combing a turbocharged 2.0-litre four-cylinder petrol with a muscular electric motor, the Merc manages to serve up an impressive 308bhp and an EV range of 70 miles. As a result, 0-60mph takes 6.0sec (we tested it in the wet, so expect it to be quicker in ideal conditions) and 6% BIK. 

Despite the dragster performance, the Merc isn’t a truly sporting option. The handling is accurate enough, but a BMW 3 Series PHEV, found further down this list, remains a more dynamic option. Still, few compact saloons are as hushed and comfortable at cruise, while the C300e’s interior offers an unrivalled blend of opulence and tech. 

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Our choice: Range Rover P460e

If you’ve climbed all the way up the greasy pole and made it to the CEO’s office, then nothing telegraphs your top-dog status like a Range Rover. Imposing looks, a club-class interior and incredible breadth of dynamic ability make this one of the most formidable 4x4s on and off road.

Sitting up high behind the Rangie’s wheel gives you an imperious view of the road ahead, while the plush air-suspended ride and vault-like refinement mean nothing need disturb you and your passengers on the move. Yet despite its vast exterior dimensions, the big Brit handles with surprising precision, especially with the optional four-wheel steering, which makes it feel far more wieldy than you might expect. And if you do ever head off road (you won’t, because, well, 22in diamond-cut alloys) you’ll discover this is a luxury car that reaches the parts others can’t.

Inside, it melds old-school luxury with all the latest gadgets and gizmos, while space isn’t exactly in short supply. Of course, this capability and upper-rust pampering doesn’t come cheap, but with an EV range of over 70 miles, the P460e softens the blow with a BIK banding of just 8%, which means higher-rate earners will pay less in tax than they would on an entry-level Skoda Kodiaq.

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Our choice: Citroën C5 X Plug-in Hybrid

Sometimes it pays to do things differently, which is why the Citroën C5 X makes such a compelling choice of company car for those who don’t like to be pigeon-holed. Something of a return to quirky form for the French firm, this distinctive machine effortlessly blends style, space and serenity.

Effectively Citroën’s left-field take on the traditional large family car, it aims to combine the fashionable appeal of an SUV with the classical style of a saloon and the space of an estate. In many respects, it pulls this off, with the C5 X featuring sleek lines that hide a spacious, neatly designed interior and generous 485-litre boot (although that’s down from 545 litres on the non plug-in version).

Comfort is the order of the day on the move, with squishy and cosseting seats, low noise levels and a ride that almost delivers the supple excellence of the brand’s hydropneumatically sprung forebears. The trade-off is a driving experience that’s capable but largely free of thrills.

The same goes for the plug-in hybrid powertrain, which with a combined output of 222bhp is brisk rather than quick. And while it works smoothly and unobtrusively, its claimed range of 39 miles means it falls into the higher 13% BIK band.

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Our choice: Volkswagen Golf Match PHEV

Occasionally in business it’s best to slip below the radar, especially when it comes to creating the impression that you’re a safe bet for your clients’ cash. In those cases, only a Golf will do. As familiar a piece of street furniture as a lamp post or 'no entry' sign, the evergreen hatch also exudes quality and a certain classy classlessness (that may or may not be a phrase).

The recently refreshed Mk8.5 Golf addresses some of the quirks of its Mk8 predecessor. It’s still based on the same MQB platform that make its debut on the Mk7, which is good news. That means it has mature driving dynamics, which combine just enough back-road sparkle with a compliant ride and decent refinement.

However, the car’s infotainment has been improved with enhanced graphics and a more intuitive interface. Crucially, the air-con temperature controls are now backlit, so you can adjust them at night.

Most importantly, the plug-in hybrid model’s 201bhp petrol-electric drivetrain now packs a 25.7kWh battery, which means a remarkable WLTP EV range of 88 miles and a BIK rating of just 6%. 

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Our choice: BMW 330e Sport

The 330e takes a great deal of what we like about the 530e at the top of this list - but distills it into a smaller and cheaper car.

BMW claims up to 63 miles of electric range. During our testing, we achieved 50 miles - which is still long enough for most commutes and a cheap way of getting to and from work assuming you can charge on your driveway.

It’s a great steer too, with natural poise and vigour as well as excellent motorway stability.

Driving modes make a big difference. Use Electric and it won’t wake the engine, while choosing Sport or better yet XtraBoost (which is the only mode that will unlock the full 289bhp) allows the 3 Series to becomes an altogether different beast, much more alike to a sports car such is the responsiveness of the throttle.

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Our choice: Porsche Panamera Turbo S E-Hybrid

When it comes to company car Top Trumps, few cars come close to matching Porsche's plug-in hybrid Panamera. Its combination of electric motor and turbocharged 4.0-litre V8 results in a rippling 671bhp, which means 0-62mph in 3.2sec and a top speed of 196mph.

Heavily updated earlier this year, the Panamera also features even sharper looks and a revised chassis, making it an even more entertaining choice. Not only is it rabidly fast, but it also drives with a sports-car nimbleness and engagement that’s at odds with its hefty, near two-tonne kerb weight and expansive external dimensions.

It also rides with aplomb and the upgraded interior is even roomier and packed with high-grade materials. Company executives will feel pampered and relaxed at the end of a tough day in the board room. Then there’s the tech, which includes more screens than the average IT department.

Of course, you don’t get to be in a position to run a Panamera as a company car unless you’re astute with the business accounts. So it’s good news that the Porsche’s 25.9kWh battery gives an EV range of 59 miles, which means a 9% BIK.

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Our choice: Toyota C-HR PHEV

Creating a strong first impression is often vital for business success, which is where the Toyota C-HR shines. Now in its second generation, the high-riding crossover has gone for bold this time around and its coupé-inspired looks and neat two-tone paint job help it stand out from the company car crowd.

Better still, there’s substance to go with the style. Underpinned by the brand’s TNGA architecture, the C-HR is good to drive, with natural and poised handling and a fluid ride. It’s also boosted by a new, smooth and refined plug-in hybrid drivetrain that develops 220bhp and claims 41 miles of EV running for an 9% BIK rating.

There have been improvements inside too, with a neater design and an upgrade in premium appeal. It also benefits from Toyota’s latest and easier-to-use infotainment, plus an array of advanced driver aids. Less impressive is the space for rear passengers, which feels even more cramped because of the incredibly small side windows. Accommodating the hybrid running gear also shrinks the boot to just 310 litres, which is smaller than some superminis.

Still, if you cover most of your work mileage one-up, then the eye-catching, refined and easygoing Toyota deserves a look.

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10. MG HS

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Our choice: MG HS SE

MG has built a large PHEV SUV with an attractive BIK tax rate, good driving manners and a long electric range for a very, very competitive price.

It doesn’t feel all that cheap inside, though. The interior is adorned with soft-touch materials, seat comfort is among the best in class and driver visibility is very good.

The boot is very impressive for a PHEV, offering some 507 litres worth of space. There’s no penalty here for choosing a PHEV over a regular model, like there is with rivals such as the Ford Kuga.

Officially the HS offers a 75-mile EV range and during our testing we achieved 65 miles. The 0-62mph time of 6.8sec means you’re never really left wanting for performance. And importantly, the transition between electric and petrol power is near seamless.

Read our MG HS review

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Murray Scullion

Murray Scullion
Title: Digital editor

Murray has been a journalist for more than a decade. During that time he’s written for magazines, newspapers and websites, but he now finds himself as Autocar’s digital editor.

He leads the output of the website and contributes to all other digital aspects, including the social media channels, podcasts and videos. During his time he has reviewed cars ranging from £50 - £500,000, including Austin Allegros and Ferrari 812 Superfasts. He has also interviewed F1 megastars, knows his PCPs from his HPs and has written, researched and experimented with behavioural surplus and driverless technology.

Murray graduated from the University of Derby with a BA in Journalism in 2014 and has previously written for Classic Car Weekly, Modern Classics Magazine, buyacar.co.uk, parkers.co.uk and CAR Magazine, as well as carmagazine.co.uk.

James Disdale

James Disdale
Title: Special correspondent

James is a special correspondent for Autocar, which means he turns his hand to pretty much anything, including delivering first drive verdicts, gathering together group tests, formulating features and keeping Autocar.co.uk topped-up with the latest news and reviews. He also co-hosts the odd podcast and occasional video with Autocar’s esteemed Editor-at-large, Matt Prior.

For more than a decade and a half James has been writing about cars, in which time he has driven pretty much everything from humble hatchbacks to the highest of high performance machines. Having started his automotive career on, ahem, another weekly automotive magazine, he rose through the ranks and spent many years running that title’s road test desk. This was followed by a stint doing the same job for monthly title, evo, before starting a freelance career in 2019. The less said about his wilderness, post-university years selling mobile phones and insurance, the better.

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And so what actually 10 September 2025

You dont even have the car with the longest EV range on the list. Seems odd

catnip 2 August 2024

As a UK taxpayer, articles like this seriously annoy me. My friend has a PHEV Audi, and she has completely given up plugging it in at all now, but obviously enjoys the tax benefits. You just know that all the Range Rover PHEVs never go anywhere near a plug.

Meanwhile, in other news, pensioners just over the pension credit limit have lost their winter fuel allowances.

xxxx 2 August 2024

Could relabel this article as tax dodger special, can't wait for them to get caught out and figures of 250 plus mpg are investigated by trading standards.