When looking for a new job, many drivers consider a company car as a must-have perk.
Company cars can save employees money, and choosing an electric car brings a great reduction in benefit-in-kind (BIK) tax.
Business users are taxed on a low percentage of the car's value, which can amount to significant annual tax savings.
For the 2025/2026 tax year, this figure is just 3% for EVs, while petrol and diesel models come in significantly higher – up to 37%, in fact.
In the modern world, EV drivers can also benefit from cheap home charging rates or even charge at the office, should their company offer it.
There are many excellent electric company car options out there, with models from Volkswagen, Tesla, BMW and MG all proving popular with the British driving public.
The Volkswagen ID 7 stands out as our premier choice, offering remarkable range, unparalleled comfort and excellent practicality, all at a highly affordable monthly cost.
But which other options should you add to your shortlist? Check out our full list below to find out, including some of the best hatchbacks, SUVs, estate cars and more.
BIK rate: 3%
Monthly BIK tax at 20%: £25.20
Monthly BIK at 40%: £50.40
Volkswagen’s electric line-up has several good options for company cars, but our pick and overall top choice is the ID 7.
Available as a saloon or a Tourer estate, the ID 7 should be at the top of your shortlist if you have a longer commute. Range is one of its many strong points, with small-battery variants offering 380 miles and long-range cars 440 miles.
Inside, the ID 7 boasts comfortable seats, plenty of front and rear leg room and a vastly improved, 15in touchscreen infotainment system.
It’s generally very practical, as the saloon has 532 litres of boot space, compared with 605 litres in the estate.
For 20% taxpayers, an ID 7 can cost as little as £25.20 a month, which doubles for 40% taxpayers. It’s certainly a lot of car for the money.
Read our Volkswagen ID 7 review
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