The company car market now offers more choice than ever. With a growing number of electric and plug-in hybrid models available, each offering more range and better performance than the last, choosing the right vehicle can feel overwhelming. From established brands to new contenders, there’s no shortage of options. So, how do you decide which one is right for you?
When it comes to company cars, it's not just about looks or brand prestige. You have to consider practicality: is it spacious enough for long commutes or client visits? Does it offer the latest tech and safety features? Is it efficient, reliable, and comfortable to drive? And increasingly, is it cost-effective when it comes to Benefit-in-Kind (BIK) tax?
That’s why we’ve put together a helpful guide to some of the top company cars of 2025. From fully electric models to plug-in hybrids, we’ve included a variety of standout options because we understand how important it is to choose a car that balances performance, environmental impact, and cost-effectiveness.
What is BIK and Why Should You Care?
If you’re new to company cars or just haven’t had to think much about the tax implications before, it’s worth getting familiar with Benefit-in-Kind (BIK). This is the tax employees pay when they receive a company car, and the amount you pay is based on the car’s CO2 emissions and its P11D value.
For lower-emission vehicles, especially hybrids and electric cars, BIK rates are significantly reduced. Fully electric vehicles currently benefit from the lowest BIK rate of just 3%, making them the most attractive company cars.
For plug-in hybrids, the rate depends not just on emissions but also on the electric-only driving range. This means choosing a vehicle with a good electric range could save you hundreds — if not thousands — of pounds over the course of your lease or ownership.
Whether you’re choosing your first company car or looking to upgrade to something smarter, greener, and more cost-effective, our list is here to help guide your decision. We’ve done the hard work, so you don’t have to.
BYD Seal
Range: 323 – 354 Miles
BIK: 3%
The BYD Seal is a fully electric saloon that’s been on UK roads since 2023. From one of the fastest-growing EV brands, it’s quickly becoming a serious contender in the company car market.
Often seen as an alternative to the Tesla Model 3, the Seal has a clean, modern design with a smooth roofline and a well-finished interior. The standout feature is the 15.6-inch infotainment screen, which can rotate depending on what you’re doing — useful for maps or media. While the layout can take a bit of getting used to, it comes with all the key features you'd expect, including Apple CarPlay and Android Auto.
Performance is strong too. The all-wheel-drive model puts out 530hp, going from 0–62mph in as little as 3.8 seconds, so there’s no lack of power. It’s quick to respond and handles well on twisty roads, making it fun to drive, not just efficient.
With a range of up to 354 miles, it’s also ready for longer journeys. There’s space for five and 400 litres of boot capacity, so it works well for everyday use too.
The Seal may not be quite as polished as the Ioniq 6 in terms of infotainment system smoothness, but it offers a lot — performance, range, and low BIK — all at a competitive price.
BMW i4
Range: 287 – 359 miles
BIK: 3%
The BMW i4 is a premium all-electric saloon that balances comfort and performance. With various trims available—including the high-performance M50, you can go from 0 to 62 mph in just 3.9 seconds if you're after a thrilling drive. Of course, pushing it hard will reduce your range, but the choice is yours.
It offers seating for five and up to 470 litres of boot space, while it is not the roomiest in its class, it's still practical enough for most needs.
Inside, the i4 delivers a refined, upscale feel, with high-quality materials that surpass rivals like the Tesla Model 3 and Polestar 2. Standard features include synthetic leather seats and a tech-forward cabin, featuring a 12.3-inch digital instrument cluster and a 14.9-inch infotainment touchscreen.
Kia EV6
Range: 263 – 361 miles
BIK: 3%
The Kia EV6 is a cutting-edge, all-electric car with bold styling and an advanced 800V charging system. This allows you to recharge from 10% to 80% in under 20 minutes, perfect for drivers covering long distances who don’t want to spend time waiting around. With strong range and impressive performance, there’s a lot to like about the EV6.
Inside, the front seats are spacious and comfortable, especially in the GT model, which features supportive sports seats. There are large door bins, a wireless charging pad, and a generous 490-litre boot. While it doesn't quite match the Skoda Enyaq for cargo space, it still offers plenty of practicality.
The EV6 is available in a wide range of trims, including the high-performance GT variant, which rockets from 0 to 62 mph in just 3.5 seconds. All models feature dual 12.3-inch displays, and higher-spec versions include a head-up display for added convenience.
BMW X1
Range: 47–50 miles (PHEV)
BIK: 9%
The BMW X1 is one of the larger vehicles on this list of top company cars. This versatile family SUV is available with diesel, petrol, or plug-in hybrid (PHEV) powertrains. For company car drivers, the hybrid model offers the best option due to its low 9% Benefit-in-Kind (BIK) rate.
The PHEV is available in the sporty M Sport trim if you're after a bit more performance and style. Inside, the cabin feels premium and modern, featuring a sleek design and BMW’s crisp infotainment system. However, BMW has removed physical climate control buttons in favor of touch controls on the 10.7-inch screen—a change that some users find less intuitive.
The X1 offers generous space in both the front and rear, with up to 540 litres of boot space, making it practical for family and business use.
If you're looking for even lower BIK rates and an all-electric option, there's also the iX1, which delivers impressive EV range and similar levels of refinement. On the road, body control is sharp, especially in Sport mode.
Both plug-in hybrid versions use a 1.5-litre three-cylinder petrol engine paired with an electric motor. The 25e model produces 245hp, while the 30e delivers a punchier 326hp, offering plenty of power for daily driving and longer journeys.
Volvo EX30
Range: 209–296 miles
BIK Rate: 3%
The Volvo EX30 is the smallest all-electric SUV in Volvo’s lineup, yet it delivers an impressive combination of range and performance. Despite its compact size, the EX30 commands a strong road presence with its sharp, clean design.
Inside, the EX30 embraces a minimalist aesthetic featuring a crisp, highly responsive infotainment system. Most controls are integrated into the touchscreen, creating a sleek, clutter-free dashboard. The cabin is surprisingly spacious, especially for front passengers, and thoughtful touches like large door bins help keep the interior tidy. A wireless update system and wireless phone charging add modern convenience.
However, rear passenger space is more limited, with the seats mounted relatively low, which might make it uncomfortable for taller passengers to avoid touching the front seats. On the plus side, the large windows and generous headroom help create an open and airy feel.
Boot space is on the smaller side for an SUV, offering 318 litres, which expands to 904 litres when the rear seats are folded down.
Charging capabilities are solid, with fast charging from 10% to 80% taking around 26 minutes using a 134kW charger, ideal for those daily commutes and longer trips.
For those wanting extra performance, the higher-spec EX30 accelerates from 0-62 mph in an impressive 3.7 seconds, adding a sporty edge to this efficient electric SUV.
Volkswagen ID.4
Range: 213–328 miles
BIK Rate: 3%
The Volkswagen ID.4 is the practical choice in the ID range, offering a solid mix of electric range, performance, and everyday usability—making it a strong contender for a company car, especially with its low 3% Benefit-in-Kind (BIK) rate.
There are several battery and power options available, ranging from 146hp to 295hp, with either a 52kWh or 77kWh battery. Depending on the configuration, the ID.4 offers a driving range between 213 and 328 miles, covering both daily commuting and longer journeys with ease.
The ID.4 is offered in various trims, including Life, Style, and the sporty GTX version. The GTX model features a slightly larger 12-inch infotainment screen, along with additional styling cues for a more dynamic feel.
Inside, the cabin follows a minimalist design, which feels modern but does use some harder plastics that take away slightly from a more premium feel. However, it’s still well-equipped with a digital driver display, LED headlights, heated seats, and adaptive cruise control.
From the outside, the ID.4 shares a similar front-end look with the ID.3, including slim headlights connected by a full-width LED light bar. It offers a practical 543 litres of boot space, which is generous for an electric SUV.
While the exterior design may not be as sleek as some rivals, the ID.4 makes up for it with substance. It received a full five-star safety rating under the more rigorous 2021 Euro NCAP tests. It also comes packed with advanced driver assistance features such as adaptive cruise control, emergency braking, park assist, and more.
Range Rover Sport
Range: 74 miles
BIK: 6%
The Range Rover Sport PHEV is one of the most premium and luxurious vehicles on this list—ideal for those not quite ready to go fully electric but still looking for lower Benefit-in-Kind (BIK) rates. While its 6% BIK rate isn't as low as an EV, it's still attractive for a high-end SUV in this class.
As expected from a vehicle of this size and prestige, interior space is generous. There's plenty of room for both the driver and front passenger, along with a spacious rear cabin. The boot offers a sizable 647 litres, putting it near the top in terms of practicality among luxury SUVs.
Under the bonnet, the plug-in hybrid drivetrain is available in two powerful versions: 440hp or 510hp, delivering smooth, effortless performance. Both are paired with electric motors to provide strong acceleration and improved efficiency. Petrol and diesel options are also available, but company car drivers will find the BIK rates on those variants significantly less appealing.
The Range Rover Sport offers a commanding driving position with excellent visibility and a comfortable ride, especially in urban settings. However, it's just as capable on long journeys, offering strong performance and composure at higher speeds.
Inside, the cabin is packed with high-end materials and cutting-edge technology. All models come well-equipped, including electric front seats with 20-way adjustment and memory functions, ensuring comfort is never an issue.
Polestar 4
Range: 367 - 385 Miles
BIK: 3%
The Polestar 4 has quickly gained popularity since its launch in early 2024. This all-electric SUV comes from Polestar, originally a performance division of Volvo, which became its own brand in 2015. Polestar has been offering cars in the UK since 2020, and the 4 continues to strengthen its reputation for blending performance, technology, and style.
With boot space of up to 526 litres with the seats up, the Polestar 4 competes well with rivals like the Audi Q6. Performance-wise, 0–62 mph can be achieved in as little as 3.8 seconds, depending on the model, while other versions take up to 7.1 seconds—so specs and performance vary significantly by trim.
Inside, the cabin is packed with technology, featuring a Google-powered infotainment system that includes many of the apps you'd find on your phone. However, it’s worth noting that most functions, including opening the glovebox, are controlled through the central infotainment screen. Speaking of which, the massive 15.4-inch touchscreen dominates the dashboard and is part of an interior that feels solid and well-built.
From a practicality perspective, the Polestar 4 offers excellent interior space. It’s roomy for both front and rear passengers, with generous headroom and legroom. Rear-seat passengers also benefit from a central screen for climate and media controls, along with USB-C ports for charging devices.
In terms of range, the Polestar 4 isn't the longest on the list. Brands like Porsche and BMW offer EVs that exceed 400 miles on a single charge. However, if maximum range isn’t your top priority, the Polestar 4 is a compelling option. Its large 100kWh battery delivers an official range of 385 miles in the Long Range Single Motor version, and 367 miles in the Long Range Dual Motor model.
Charging performance is solid too, with the car capable of charging from 10% to 80% in just 30 minutes using a 200 kW DC fast charger—on par with many rivals, though not quite as quick as the Porsche Macan.
Porsche Taycan
Range:336 - 422 Miles
BIK:3%
The Porsche Taycan is the performance king of this list, and it shows. Depending on the model, 0 to 62 mph can be achieved in as little as 2.2 seconds, with even the slowest version hitting it in just 4.8 seconds. That kind of speed is usually reserved for supercars, yet the Taycan delivers it with the refinement of a luxury EV.
This is also the most premium and luxurious car here, but it comes at a cost. A standard Taycan starts at around £88,000 if you’re buying outright. If you're eyeing the Taycan Turbo GT with the Weissach package, prepare for a price tag of £189,000. Most drivers access it through business lease, salary sacrifice, or personal contract hire.
Still, you're getting more than just raw performance. The Taycan combines comfort, advanced technology, and Porsche styling in a way few electric cars can. The Turbo GT model offers a top speed of 190 mph, and with that blistering 2.2-second acceleration, the Taycan is undeniably a true driver’s car that just happens to be electric.
Currently, there are 16 different Taycan variants to choose from, ranging from the entry-level Taycan to the Cross Turismo and Sport Turismo models. Each version has its strengths, whether you’re prioritising range, comfort, or outright speed.
The ride quality is excellent. With adaptive air suspension and Porsche Active Suspension Management (PASM), the Taycan responds in real time to road conditions, giving you a smooth and controlled drive even at high speeds. You can also tailor your driving experience using Drive Select, which allows you to switch between comfort and sport-focused settings.
Range depends on the model and how you drive. Official WLTP figures range from 336 to 422 miles, but real-world results will vary. If you’re often tapping into its performance, expect lower figures. Drive it more efficiently, and the Taycan can comfortably reach over 400 miles on a single charge.
Charging is equally impressive. With ultra-fast charging capabilities, the Taycan is well suited for long journeys with minimal downtime.
BMW M5 PHEV
Range: 39–42 miles
BIK: 9%
The latest BMW M5 is now only available as a plug-in hybrid. That might not appeal to everyone, but for company car drivers, the shift to hybrid power means a 9% BIK rate, making it a more tax-efficient option without giving up high performance.
It’s also surprisingly efficient on paper, with an official fuel economy figure of up to 706.2 mpg (WLTP). However, this is based on regular charging. If you don’t charge the vehicle often, you’re essentially running a powerful V8, so expect much higher fuel consumption in real-world use.
It combines a 4.4-litre twin-turbo V8 with an electric motor and 22.1kWh battery, producing a huge 700hp. Despite its weight (over 2.4 tonnes), it still manages 0–62 mph in just 3.5 seconds, and the hybrid system helps with short electric-only trips when driving around town.
Inside, it's well equipped with M sport seats, a 12.3-inch digital driver display, and a 14.9-inch infotainment screen. There are still proper climate control buttons, which is a bonus. Boot space is a decent 456 litres, though not huge for a saloon this size.
It’s not a cheap option, starting from around £111,000, but for those who still value a powerful V8 and engaging drive, the M5 PHEV stands out as one of the few performance saloons that also benefits from a relatively low 9% BIK rate.
