Currently reading: Best electric company cars: driven, rated, ranked

Take advantage of low benefit-in-kind tax bandings with the ultimate list of electric company cars

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.

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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.

The rear-driven ID 7 Pro makes a healthy 282bhp and 402lb ft of torque. A 335bhp, four-wheel-drive GTX variant is also available.

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.

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BIK rate: 3%
Monthly BIK tax at 20%: £47
Monthly BIK at 40%: £94

Porsche’s electric saloon-cum-estate is by far and away the most premium option on our list, but that doesn't mean it will break the bank in terms of BIK. 

All versions of the Taycan now get air suspension as a minimum and more comfort (a reversing camera, heated front seats, a heat pump).

Both the saloon and estate-bodied Sport Turismo can cost as little as £47 per month as a company car. It’s a surprisingly affordable way of getting behind the wheel of a premium model with a minimum of 435bhp. 

The Taycan’s BIK cost will vary significantly depending on which car you want to choose, though. The Taycan Turbo S, with a mind-blowing 938bhp, will set you back almost twice as much as a regular Sport Turismo. 

You will need to choose carefully to maximise range too. The entry-level model has the longest range, at 421 miles, while the Turbo GT offers the least, at 344 miles.

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BIK rate: 3%
Monthly BIK tax at 20%: £11.50
Monthly BIK at 40%: £23

The French firm’s retro-styled electric hatchback is one of our favourite cars of 2025, and its all-round quality, plus its beneficial BIK bands, make it a great choice as a company car. 

The motors are a development of those found in the Renault Megane and Scenic but are smaller and lighter.

It doesn’t have the longest range on this list, but 252 miles should be enough for most drivers, especially those with shorter commutes in more urban and suburban areas. 

Comfort is a strong point with the Renault 5, even exceeding models priced far higher. Everything in the cabin is laid out intuitively, from the 10.3in infotainment system to the physical buttons that sit beneath. It’s a nice place to sit and should keep you relaxed on your commute. 

Taking into account the 5’s low list price, plus its 3% BIK banding, you will pay just £11.50 per month as a 20% taxpayer. How can you say no?

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BIK rate: 3%
Monthly BIK tax at 20%: £20
Monthly BIK at 40%: £40

Despite Tesla’s recent troubles, its recently revised Model 3 is still a compelling company car choice. 

The Model 3’s cabin was always a love-or-hate proposition and this hasn’t changed with the facelift.

The popular electric saloon was updated in 2025 with changes made both inside and out. It now sports a sleeker exterior design plus has gained improved performance and range.

The Long Range version claims an impressive 436 miles between top-ups, making it one of the longest-legged EVs available today. Add in access to the Tesla Supercharger network and you’ve got a very compelling company car. 

There’s plenty of performance, agile handling and a decent ride, plus the Model 3 is now the best-built Tesla. The biggest niggle is the removal of the traditional steering column stalks, with the new wheel-mounted touchpads for the indicators making roundabouts a challenge.

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BIK rate: 3%
Monthly BIK tax at 20%: £18.50
Monthly BIK at 40%: £37

The Renault Scenic has made a move that seems to be becoming all the more common across the industry: it turned into a plush electric SUV. 

The accelerator pedal is responsive and the ramp-up of torque to the wheels is well judged.

Beneath the metal sits a 91kWh battery with a claimed range of 379 miles, plus rapid charging capability up to speeds of 150kW. In the real world, you will get around 315 miles of range in mixed driving. 

The Scenic is a good choice for company car drivers who also need to carry passengers, offering amounts of leg room suitable for children and adults.

If you need to lug loads rather than ferry your family, boot space is good too, measuring in at 545 litres.

In all, the Scenic sems remarkably good value. We would recommend a Long Range model, which still comes in at a very affordable £18.50 on a 20% salary, or £37 if you’re in that higher 40% bracket.

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6. BMW i4

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BIK rate: 3%
Monthly BIK tax at 20%: £25
Monthly BIK at 40%: £50

Similar to the internal combustion BMW 4 Series on which it’s based, the electric BMW i4’s greatest asset is its powertrain selection. 

The software itself is that of BMW’s eighth-generation iDrive, and the graphics are ultra-sharp – which is just as well, because there is an awful lot of information.

Every i4 packs pace and performance. Even the most basic eDrive35 car will get you from 0-62mph in just 6.0sec, while the eDrive40 is quicker at 5.6sec. For supercar speeds, look at the i4 M60 xDrive, which will whiz you from 0-62mph in 3.7sec. 

Range is good too, starting at 304 miles and rising as high as 334 miles. Of course, it’s no diesel 3 Series, but it’s enough for most commutes. If you do need to charge, you will be able to take advantage of a maximum charging speed of 205kW.

For the cheapest i4, you will pay £25 per month in BIK if you’re on a 20% salary or £50 if you’re a 40% earner. For the high-powered M60, it's £35, which seems like a good deal to us. 

Read our BMW i4 review

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BIK rate: 3%

Monthly BIK tax at 20%: £19

There's a new-look steering wheel that, along with the front seats, is heated as standard, and you get tri-zone climate control straight out of the bag.

Monthly BIK at 40%: £38

The Skoda Enyaq is a remarkably cheap company car option. A basic model will cost you just £19 per month in BIK, or £38 for 40% earners. 

A brilliant all-rounder, the Enyaq is one of our favourite electric SUVs, offering a blend of usable daily performance, long-legged range figures and family-friendly practicality. 

Basic cars get 277 miles of range from a 63kWh battery, but the larger 82kWh variant is capable of 370 miles, which should be more than enough for most commutes. 

Inside, the Enyaq gets a 13in infotainment system alongside a 5in digital instrument cluster.

Boot space varies between the regular SUV and Coupé versions: a sizable 585 litres in the former, 570 litres in the latter. 

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  • Design7
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BIK rate: 3%

Monthly BIK tax at 20%: £22.50

The suspension has been made more compliant, the steering less hyperactive and there’s better noise insulation with acoustic glass.

Monthly BIK at 40%: £45

Enjoyed by Uber drivers and businessmen alike, the Tesla Model Y was the best-selling electric car and the overall best-selling car in Europe in 2024. 

An update in 2025 modernised its exterior design and slightly improved comfort, and, thanks to its impressive efficiency and direct access to Tesla’s Supercharger network, it’s still one of the best EVs for company car users. 

The entry-level Model Y gets 311 miles of range, but the Long Range model ups this to a lofty 387 miles.

It’s also reasonably quick, hitting 0-62mph in 5.6sec. Switch to all-wheel drive and it will complete that same sprint in 5.5sec. 

Practicality is a particular strong point for the Model Y, with 854 litres of boot space in the back and 117 litres under the bonnet.

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  • Design8
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  • Ride & Handling8
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BIK rate: 3%
Monthly BIK tax at 20%: £22.50
Monthly BIK at 40%: £45

Despite the busy segment the MG S5 EV finds itself in, the mid-sized crossover still manages to stand out against a slew of competent rivals. 

The S5 offers more second-row head and leg room than either the Renault Scenic or Kia EV3, although a little less than the Skoda Elroq.

It’s the Long Range car you will want to consider here. MG claims a range of 298 miles (or 211 miles in the less powerful Standard Range model). Our real-world tests returned an average of around 220 miles, which admittedly won’t suit those with long commutes.

It’s quick, though. The S5 produces good usable performance from a single, rear-mounted electric motor, with 228bhp and 258lb ft on tap. That’s enough to shift it from 0-62mph in a brisk 6.0sec.

The real magic, though, is found on the inside. Top-spec Trophy cars get plush materials throughout, including a soft-touch dashboard, Alcantara and faux carbonfibre. Boot space comes in at 453 litres.

There aren’t many alternatives that can match the S5 for the price.

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10. Kia EV3

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BIK rate: 3%

Monthly BIK tax at 20%: £16.50

The Cupra Born and Volkswagen ID 3 have slightly more rear space, but the EV3 compensates with a bigger boot that has a remarkable amount of underfloor storage.

Monthly BIK at 40%: £33

Kia’s smallest electric car represents a great value option for company car customers, with costs as low as £16.50 per month. For that price, you will get a 58.3kWh battery with 270 miles of range.

However, our pick is the larger 81.4kWh battery, which produces a far more competitive range of 375 miles. It will cost you £18 per month, or £38 on a 40% salary band. 

The EV3 is a supremely easy car to live with, with an intuitive user interface, crisp and clear infotainment and comfortable seats. There’s wireless Apple CarPlay and Android Auto too. 

Boot space is similarly competitive, with 460 litres available with the seats in their regular position or 1250 litres with them folded down. Add in a 25-litre storage space below the bonnet and you will be hard pressed to find a car more practical at such low cost.

HOW TO CHOOSE THE BEST ELECTRIC COMPANY CAR

When choosing the best electric company car, you should consider the following: 

Costs

Why it matters: company cars are available with all types of powertrains, but varying tax rates mean some are far cheaper to buy than others. Electric: EVs are by far the cheapest options for company cars. They previously only commanded a 1% BIK tax banding, but that has since increased to 3%.

Size

Why it matters: too small and you won’t have enough space. Your car might not be suited to your job role, especially for those with big loads to carry. 

Larger vehicles can accommodate a higher number of passengers. For example, the Kia EV9 can seat up to seven people - and it benefits from low BIK bandings.

Range

Why it matters: if you have a long commute, you will want a car that can travel long distances reliably. 

Electric cars will have varying driving ranges depending on weather conditions, outside temperatures and your driving style. Also equipment, such as climate control and heatpumps, will drain battery charge. However, many are now comfortably capable of traveling in excess of 300 miles without needing a charge.

HOW WE TESTED AND SELECTED

When reviewing company cars, we evaluate them against a range of practical, technical and user-focused criteria, as well as considering their monthly costs using the UK government's benefit-in-kind (BIK) tax percentage rates. 

1. Efficiency

Efficiency is important in any car, but company car drivers often have long commutes and will hit high mileages. When reviewing cars, we compare real-world efficiency measurements with the WLTP figures that are made up of laboratory tests. All the cars on this list are broadly efficient and long-legged. 

2. Interior comfort and space

We measure leg room, head room and storage space. Cabin noise levels at motorway speeds and ride comfort on various road surfaces are also assessed.

3. Performance

We evaluate acceleration, braking and cornering across city, suburban and motorway routes. Overall speed is not important in this review but acceleration is, due to real-world scenarios such as getting up to speed for a motorway.

4. Technology

Infotainment systems are tested for ease of use, responsiveness and smartphone integration (Apple CarPlay and Android Auto). We evaluate ADAS features (adaptive cruise control, lane keeping assistance, automated parking) to check if they have been configured to suit the UK’s roads.

5. Build quality

We inspect fit and finish, panel alignment and interior materials. We look and listen for any rattles, squeaks or cheap-feeling components that might annoy.

6. Practicality

We assess ease of entry and exit, visibility, turning circle and parking aids. We also test features such as powered tailgates, storage compartments and child seat installation points (Isofix).

7. Ownership costs

We review running costs, including benefit-in-kind tax rates and monthly costs, plus charging costs and speeds.

FAQs

What is a company car?

A company car is a vehicle that a company provides to employees, usually for business use - but sometimes for personal use, too. Company cars are considered a valuable job perk or "benefit in kind" (BiK), especially for roles that require frequent travel.

How is benefit-in-kind (BiK) calculated?

Company cars are taxed because they're considered a non-cash benefit. This tax is called benefit-in-kind and depends on the following factors: the car's list price (P11D value), CO2 emissions output, the employee's income tax bracket (either 20% or 40%), and the type of fuel the vehicle uses (petrol, diesel, electric). 

What are the benefits of company cars?

There are several benefits to having a company car, most significantly, cost-of-ownership savings. You don't have to pay the full cost of the car, insure it or maintain it yourself, for example.  Another benefit is convenience. Your company will handle the administrative tasks and financial responsibilities of the car for you.  Plus, company cars are often replaced every few years, giving the employee access to a newer model with the latest technology and safety features

Where can I charge an electric company car?

You can charge at:
  • Workplace charging points (if provided).
  • Public charging stations.
  • Home chargers (if your company policy allows it).

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