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

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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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Volkswagen gears up to finally go Tesla-hunting with its first all-electric saloon, the ID 7

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  • Design8
  • Interior9
  • Performance8
  • Ride & Handling9
  • Costs8

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.

Find Volkswagen ID 7 deals with Autocar

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  • Design9
  • Interior7
  • Performance10
  • Ride & Handling9
  • Costs8

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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  • Design10
  • Interior9
  • Performance8
  • Ride & Handling9
  • Costs8

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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  • Design8
  • Interior8
  • Performance10
  • Ride & Handling7
  • Costs8

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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  • Design8
  • Interior8
  • Performance8
  • Ride & Handling8
  • Costs7

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.

Find Renault Scenic E-Tech deals with Autocar

6. BMW i4

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  • Design8
  • Interior8
  • Performance9
  • Ride & Handling8
  • Costs7

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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  • Design8
  • Interior8
  • Performance8
  • Ride & Handling8
  • Costs8

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
  • Interior8
  • Performance9
  • Ride & Handling7
  • Costs8

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
  • Interior9
  • Performance8
  • Ride & Handling8
  • Costs8

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.

Find MG Motor S5 EV deals with Autocar

10. Kia EV3

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  • Design9
  • Interior9
  • Performance8
  • Ride & Handling6
  • Costs8

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.

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