Top 10 best company cars

Mercedes-Benz EQC 400 4Matic Sport: Mercedes’ first all-electric car also remains one of its best. Fighting off challenges from SUV rivals from Audi, Jaguar and Tesla, the handsome EQC is a great all-rounder, mixing polished driving dynamics with a handy 255 miles of range. With 402bhp on tap from its twin motors, the Merc delivers a startling turn of speed, while its air suspension melds a plush ride with accurate handling. It’s roomy, too, and the interior is typically tightly finished and packed with high-grade materials and tech. For business users, the entry-level Sport is the model to go for: it’s lavishly equipped, but with its 2% BIK, higher-rate earners will pay just £280 in tax.

Mid-sized executive car

BMW 530e SE: Some things never change, and despite numerous challengers - both saloon and SUV - the 5 Series remains king of the corporate car park. This is especially true of the plug-in hybrid variants, which deliver the BMW’s trademark sharp handling and cosseting long-distance refinement, but throw in a welcome dose of tax relief. The 288bhp 530e is best, its combo of 2.0-litre four-cylinder motor and 127bhp electric motor being beautifully integrated for a pleasing combination of punch and parsimony. It also results in 31g/km CO2 emissions and an 12% BiK rating, which means an annual salary sacrifice of as little as £1196 on SE models.

Family hatchback

Volkswagen Golf 1.4 TSI eHybrid Style: The evergreen Golf has always been a family hatch hit, but the latest, eighth-generation model puts the versatile VW back at the top of the class. Of course, there’s a Golf for every taste and budget, and for company car drivers, it’s the plug-in 1.4 TSI eHybrid in lavishly equipped Style trim, which, with CO2 emissions of 21g/km, attracts a lowly 8% BIK rate. Yet with 204bhp on tap, it’s no slouch and, like other Golfs, it serves up a perfectly judged balance of ride and handling. The touchscreen infotainment system is fiddly, but in all other respects, this is a car that’ll keep drivers and fleet managers happy.

Compact family saloon

BMW 330e SE Pro: Such is the brilliance of the BMW 3 Series that you wonder why rivals even bother. A mixture of engaging handling, impressive refinement and a hewn-from-solid quality make it the default choice for those who love driving and are also climbing the corporate ladder. The 318d used to be the default tax-busting choice, but the plug-in 288bhp 330e delivers more performance (its 0-62mph sprint of 5.9sec is nearly 3sec faster) yet, with 30g/km CO2 emissions, it’s rated at 11% BIK so a lower-rate earner will pay £991 in tax compared with £2228 for the cheapest diesel model.

Family SUV

Audi Q5 50 TFSIe Sport: It’s hard to pick fault with the stylish and beautifully finished Q5, which is a consummate all-rounder. Spacious, well equipped and oozing premium appeal, the high-riding Audi is the sort of car that slips seamlessly into your life. It’s not much fun to drive, but it’s poised, planted and benefits from quatrro security, plus it’s comfortable and has impeccable long-haul credentials. The addition of mild-hybrid engines has improved efficiency, but business users are better served by the plug-in hybrids. The 50 TFSIe (the more powerful 362bhp 55TFSIe has been dropped from the range) in Sport trim combines 2.0-litre petrol and electric power for 295bhp and 35g/km emissions, the latter resulting in a 12% BIK rating.

Luxury SUV

Range Rover Sport P400e PHEV HSE: Before the arrival of a plug-in petrol-electric option, the Range Rover Sport was an expensive business indulgence. However, with both a 2.0-litre petrol engine and an electric motor, the P400e models can deliver 25 miles in zero-emissions mode and emit as little as 74g/km CO2 in the HSE, which works out at 19% BIK, so you’ll pay nearly half the tax of an equivalent diesel D250. It’s not as refined as a six-cylinder Sport model when worked hard, but in all other respects, you get the same remarkable breadth of talent that allows it to be dynamic on road and unstoppable off it. Its luxurious and spacious interior is also likely to impress those corporate clients.

Small electric car

Peugeot e-208 Allure Premium: It’s still rare these days that an all-electric version of a car is more desirable than its combustion-engined counterpart, but that’s exactly the case with the e-208. The standard car’s style, refinement and comfort perfectly match the EV’s near-silent 134bhp motor and effortless, linear acceleration. It’s backed by a 225-mile range and a rapid DC 100kWh charging capability, which is rare in this sector. It’s obviously a great company car choice, particularly if your business requires multiple short hops, because all versions are rated at 2% BIK. The entry-level Active Premium will cost just £121 for lower-rate users, but we’d add another fiver to our tax bill for the much better-equipped Allure Premium.

Seven-seater

Volvo XC90 T8 Recharge Plus: It’s getting on a bit now, but the handsome and versatile XC90’s appeal remains undimmed. Key to its success is a third row of seats that is actually suitable for adults, while it’s also good to drive, in a wafty and easy-going sort of way. For business owners, however, it’s the Recharge plug-in models that really catch the eye, especially the recently facelifted versions, which get a larger, 18.8kWh battery that increases the EV range to 42 miles and drops the CO2 emissions to 28g/km. As a result, it falls into the 9% BIK band, so higher-rate earners will pay £1870 in tax - a hefty chunk less than the £9483 they’d be liable for the identically specified 231bhp B5 diesel version.