Top 10 best small company cars

Not every company car has to be a vast SUV or executive saloon. Here are our picks of the small family cars

The vast majority of company cars aren’t ego-boosting executive saloons or swaggering SUVs, but are instead small family cars. Intended to slip into domestic life as they do the 9 to 5, these machines are versatile enough for most drivers yet financially attractive to fleet managers with a keen eye on the bottom line

Here we’ve gathered together our top 10 small cars (in alphabetical order) that also make great company cars. From all-electric superminis to hard-working hatchbacks with a good dose of driver appeal, these eclectic choices can turn their wheels to everything, all while battering your BiK bills down to the minimum. 

*Autocar's company car tax calculator shows exactly what you'll pay for every make and model*

*Audi A3 Sportback*

Previous generations of the Audi A3 were high on style but short on substance, certainly in terms of dynamics. Now in its fourth generation, the latest model is a much more biddable machine, delivering decent agility and poise when the going gets twisty, even if it’s still a bit of a wet-fish when it comes to driver connection. Crucially for company car users, however, it comes in new and improved e-tron plug-in hybrid guise, using the same 201bhp 1.4-litre petrol and electric motor combo you’ll find in the VW Golf and Skoda Octavia. Capable of 41 miles of electric running and rated at just 7% BiK in Sport guise it’ll cost lower rate taxpayers just £475 of their salary.

*BMW 1 Series*

There are some out there that haven’t quite come to terms with a front-wheel drive 1 Series, but the truth is that it's a better car for the switch. It’s lost none of its dynamic sparkle (if anything it feels lighter and more alert), yet there’s more space for people and things - it’s a win-win. Unlike rivals there’s no hybrid or plug-in options, but competitive pricing and a range of efficient petrol and diesels help minimize the effect on BiK bills. In the past the diesel-powered 116d would be the fleet favourite, but actually the petrol 118i SE is the most cost effective, and even with a rate of 30% it’ll cost lower rate earners a reasonable £1541 in tax. Not only is it less pricey, it’s better to drive, with a sweeter-spinning engine and fractionally less nose-heavy balance.

*Kia Niro*

You’re really spoilt for choice when it comes to the Kia Niro, because the family-friendly Korean machine is available in hybrid, plug-in and fully electric guises. While the self-charging model is most affordable for private buyers, the PHEV makes way more sense for business users thanks to a BiK rating of 11% as opposed to 26%. However, if you can make it work, then the pure EV e-Niro is better still, with a 1% BiK value that delivers a tax bill of as little as £66 for lower rate earners (although we’d stump £70 for the well-equipped 2 with the larger 64kWh battery and its 282 miles range). No Niro is a thrill-a-minute to drive, but it’s composed, practical, packed with kit and costs peanuts to run.

*Mercedes Benz A250e*

Bringing a touch of luxury to the compact family hatch class, the Mercedes A-Class oozes premium appeal. It’s not as crisp handling or plush riding as rivals, but its interior is one of the best in the business, with its slick design, top-notch materials and excellent MBUX infotainment. For those wanting to boss the company car park, the plug-in A250e gives you the look for less, especially in AMG Line Edition. The combination of 1.5-litre three-cylinder and electric motor is a little sluggish and isn’t the last word in refinement, but it’ll carry around 40 miles on electricity, emit 23g/km and attract a BiK rate of only 7%.

*MINI Countryman Cooper S E ALL4*

The super-sized MINI Countryman has always appealed to buyers who love the hatchback’s retro vibe but need a bit more space for the family. With the PHEV version you can also add company users looking to save a bundle on BiK bills. With a 1.5-litre triple powering the front wheels and an electric motor the rears, the 217bhp is quick and responsive off the line, and while it’s not as fun as the standard car it’s still planted and poised, plus the four-wheel drive set-up offers all-weather peace of mind. Classic trim gets all the kit you’ll need, and like the other models is rated at 11%, which lower rate earners face a modest £758 tax.

*MINI Electric*

It doesn’t have to be all work and no play when it comes to business, which is where the MINI Electric comes in. Granted, with a claimed range of 144 miles you won’t want any appointments to be too far away, while colleagues might start lobbying for you to get your P45 if they’re forced to sit in the back, but for maximum entertainment for minimal BiK the British machine is hard to beat. With 181bhp its performance is, ahem, electrifying, while it tackles corners with the same acrobatic agility as the ICE versions. Yet while lowest cost petrol MINI (a 134bhp Classic) will result in lower rate earners forking out £1062 in tax, the far faster and 1% rated Level 1 Electric is just £57.

*Peugeot e-208*

If your daily work duties consist of lots of short hops as well as a daily commute, then going fully electric is well worth considering for your next company car. If you take the plunge, then the Peugeot e-208 should be bubbling away at the top of your shortlist. For starters, it’s a ridiculously cost effective for business use, its 1% BiK rating combining with the favoured Allure Premium (all the kit, including 3D dials and larger infotainment) trim’s £30,320 P11D price for a tax bill of just £61 for lower rate earners. It’s also soothing to drive, it's 134bhp motor giving effortless acceleration and the supple suspension soaking away bumps. A range 217 miles and 100kW charging capability help further reduce stress levels, whie it’s just about roomy as an occasional family car stand in.

*Toyota Corolla*

There used to be a time when a drive in a Toyota Corolla was sure fire cure for insomnia, the Japanese machine a worthy but dull makeweight in the family hatch ranks. The latest car changes all that, however, proving to be as uplifting as the best to drive and shading many of them when it comes to style. As is the Toyota norm these days the Corolla is hybrid-powered, making it an attractive company car choice. There are 1.8-litre and 2.0-litre self-charging petrol-electric self-charging options, but we’d go for the latter in Design guise; it’s punchy 181bhp output is worth the modest uplift in BiK to 26% and the subsequent small increase in your tax bill.

*VW Golf GTE*

As it homes in on its half century the evergreen Golf continues to be as relevant as ever. The latest eighth generation machine is arguably the best ever, blending quality, space and usability with a driving experience that neatly balances the demands of ride and handling. For company car users there’s lots to recommend too, with a range of efficient engines that includes a pair of tax-busting plug-in hybrids. Both use the same 1.4-litre petrol and electric combo, but the racy GTE gets a 41bhp power boost over the standard TFSIe, taking the total to 242bhp. Featuring the visual flair of the GTI with just enough of its on road poise, the GTE will travel 40 miles in EV mode and is rated at just 7% for BiK and costs little more in tax for standard rate earners.

*VW ID3*

Charged with leading VW into an all-electric future, the ID3 combines bold style with a roomy interior and, depending on battery option, a lengthy range. Most importantly for business users it’s rated at just 1% BiK, so even in range-topping guise lower rate taxpayers will face a salary sacrifice of just £78. In fact, this is the model we’d plump for, the Tour Pro S combining a zippy 201bhp motor with the largest 77kWh battery for a range anxiety-busting claimed range of 340 miles, allowing you to attend meetings far and wide. The rear-engined, rear-drive VW is good to drive too, in an accurate and planted sort of way, while the ride is controlled and comfortable. As a cost-effective company car that doubles as desirable family transport, the ID3 takes some beating.