5 best company cars to order in 2023
The BIK of the bunch
Company cars make up nearly 50% of all annual car sales in the UK and it’s a segment of the market that — more than even the private car sales sector — has seen huge changes as a result of moves towards electrification.
As part of its efforts to encourage more motorists (and businesses) to choose low-emissions vehicles, the government has over the past few years introduced highly-favourable tax rates for electric and plug-in hybrid company cars that has completely reshaped the segment.
With company cars being classed as a taxable perk, they incur Benefit in Kind (BiK) taxation based on their P11D value, which is a car’s price including options, VAT and delivery charges.
A person’s BiK tax rate on company cars is based on a number of factors including whether they pay income tax at the lower or higher rate and the CO2 emissions of their company car.
Whereas diesel used to be the go-to fuel for company cars, changes to BiK tax rates in 2018 mean that some diesels now incur a 4% surcharge over petrol models with the same emissions figures (up to 37% of the BiK rate).
Looking at what was once a perennial company car favourite, the 2-litre diesel Skoda Superb now attracts a 38% BiK tax rate versus a mere 2% for a pure-electric vehicle in the 2022-23 tax period (up from 1% in 2021 and 0% in 2020) — a rate due to remain in place until 2025. That’s a massive difference and means diesel only makes sense for those hammering the length of Britain via motorways on a daily basis, and even then a long-distance EV might be more sensible.
EV tips: 10 things to know before you buy an electric vehicle
Plug-in hybrids are also subject to relatively low BiK rates, based on a sliding scale determined by how many miles a plug-in hybrid can travel on battery power alone and assuming emissions of 1-50g/km.
Currently, BiK rates for plug-in hybrids (PHEVs) range from 2% if the car can cover more than 130 miles on a charge (no such plug-in hybrids exist on the UK market yet), to 13% if the car can do fewer than 30 electric-only miles between charging stops.
What is a plug-in hybrid vehicle?
They’re not very efficient on motorways — PHEVs are best suited to drivers who spend most of their time making short journeys (commuting, school runs, etc.), then travel farther afield once or twice a year. And you do need to be able to keep the battery topped up by plugging in at home or at work. What’s more, it’s likely that PHEVs will see incentives reduced over time, given that the government plans to ban the sale of new versions from 2035. But for now they might be a good option for some company car drivers.
The good news is that whether you want a full battery-electric vehicle or a PHEV, there’s more choice in the sector than ever before.
BMW i4
Priced from £56,185
Recognising how big a part of the UK car market that company cars represent, we created a new category for The Times and Sunday Times Motor Awards 2022, with the BMW i4 being crowned the inaugural winner in the Company Car of the Year category.
As well as the all-important 2% BiK rate, the i4 combines most of the virtues of that other popular company car, the BMW 3 Series, with a pure-electric powertrain and a very impressive range of up to 365 miles between charges.
The i4 looks good, is extremely well screwed together and handles with some aplomb. Even in the single-motor eDrive40 model (a hot M50 is also available), the acceleration is brisk enough to be addictive and, in fact, that’s the version that’ll suit the vast majority of company car drivers.
Vauxhall Astra
Priced from £37,285
The plug-in hybrid version of the new Astra was one of the runners-up for our Company Car of the Year 2022 title, and it’s not too difficult to see why. The latest Astra is the best-looking iteration so far, both inside and out, and the ergonomically-designed seats (as approved by the German Campaign for Healthy Backs) are going to be particularly welcome by those who spend a lot of time behind the wheel.
The plug-in hybrid Astra is pricey compared to the rest of the range, but that 178bhp hybrid powertrain and 43 miles of electric-only range means that not only is the Astra reasonably lively, but it’ll also attract an 8% BiK rate compared to 30% for the equivalent petrol model.
There’s also a pure-electric version available from April 2023 in hatchback and estate forms, meaning you can get that 2% BiK rate. The range isn’t as impressive as some other EVs here: the advertised distance between charges is “up to 258 miles”, though at motorway speeds that’ll be quite a bit less. Charging speed is 100kW, which is again not the best by a long chalk, but it means a 10-80% charge in 30 mins. And this will be one of the more affordable options.
Mercedes EQE
Priced from £74,345
Our Car of the Year 2022 is probably, with the exception of the pricier Mercedes EQS, the best electric car for cruising up and down the motorways of Britain. A bit battery and exceptionally aerodynamic body enable a range of up to 384 miles between charges, making it one of the longest-distance EVs available (though again, driving at 70mph reduces that quite a bit), while charging the battery from 10-80% at a 110kW rapid charger takes 32 mins.
The interior is as you’d expect from a Mercedes executive car — extremely comfortable — while the suspension irons out bumps in the road, making this a very relaxing place to spend a lot of time. It’s not the cheapest option but if you normally drive a Mercedes you’ll find this electric option a breath of fresh air.
EV tips: 10 things to know before you buy an electric vehicle
Skoda Superb iV
Priced from £40,240
With diesel versions of the Skoda Superb having become rather prohibitively expensive from a BiK standpoint, the good news is that company car buyers can still get behind the wheel of Skoda’s big comfortable cruiser without having to part with all their hard-earned salary.
The Superb is hardly a sporting drive, but its enormous levels of interior space (there’s an estate too) and excellent build quality leave little to be desired.
For those in search of a company car, the plug-in hybrid Superb iV is the best bet, though its 10kWh battery is very small and only gives the Superb a 34-mile on-paper electric range (and something closer to 20 miles in reality). That said, its 10% BiK rate makes it a lot more attractive than the other models in the line-up, with non-hybrid Superbs starting at a hefty 28%.
Hyundai Ioniq 5
Priced from £43,150
Retro though the Ioniq 5’s styling may be, there’s little retro about what lies under its genre-bending body. Built on the same platform as the Kia EV6 and Genesis GV60 (both also fine company cars), the Ioniq 5 can, in Premium spec with the larger 77kWh battery, manage up to 315 miles between charging stops. When you do need to recharge, there’s ultra-rapid 350kW charging on all models thanks to its bang-up-to-date electrical architecture.
That rapid-charging ability (even if most motorway chargers in the UK will get nowhere near that) make long journeys a lot more manageable, even in entry-level 168bhp 58kWh single-motor versions. Being pure-electric, all examples of the Ioniq 5 are subject to the low 2% BiK rate.
Sensible stuff aside, the Ioniq 5’s interior is one of the most nicely styled around with tons of space, reclining front seats, a sliding centre console and clean, modern design. It also has Vehicle-to-Load (or Vehicle-to-Device) capability, which in plain English means you can charge electrical devices via a three-pin plug socket in the rear (or using the exterior charging port, with the included adapter) and use it as a giant power bank, meaning your laptop and phone will never run out of juice (as long as the car has power).
Related articles
- After reading about the best company cars, you might be interested to read about the Volkswagen ID. Aero electric saloon
- Keen to go electric? Here are the top 10 longest-range electric cars
- Or read Will Dron’s review of the Hyundai Ioniq 5
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