The UK may be one of the world’s oldest company car markets, but drivers have perhaps never had it better than they do right now.
Aiming to phase out sales of new petrol and diesel cars by 2030, the government has heavily incentivised the alternatives with a set of ultra-low tax bands introduced last year.
With a typical 90% reduction in company car tax compared to a petrol or diesel car, it’s no great surprise that – according to the SMMT – two thirds of electric vehicles registered during the first nine months of 2021 went to fleets and business users.
Better still, the ever-expanding choice of models means you don’t have to compromise on your priorities to keep your tax bills low. Here’s how.
Cheapest Overall: Smart EQ Fortwo
Unless you’re committed enough to opt for a quadricycle (such as the Renault Twizy), Smart offers the lowest tax bills in the industry. A range of 80 miles and no rapid charging means the EQ Fortwo's use case is limited to cities, but even the EQ Forfour undercuts its closest rivals if your company’s choice list restricts you to five-door cars.
Monthly BIK (20%/40%): £7.37/£15.85
Also consider: Fiat 500 Action (24kWh)
For a small increase in tax outlay, the chic Fiat 500 has the advantage of a more useful 118-mile range, four seats and a charging rate that’s twice as fast as the Smart.