Top 10 best electric company cars
An electric company car can be a great way to keep your tax bills low, and there are plenty of great options
Whether it’s cost-cutting, sustainability or new technology that motivates you, electric company cars have become a compelling option for drivers and fleet managers alike.
HMRC has set an ultra-low benefit-in-kind (BIK) rate of just 2% for all electric cars until April 2025, which means drivers can typically shave around 90% off their tax bills compared with an equivalent petrol or diesel model. With tax and fuel savings for fleet operators too, it’s hardly surprising that over half of new business contract hire deliveries are now battery-powered, according to the British Vehicle Rental and Leasing Association.
If you’re lucky enough to be offered a car as part of your job, and going electric can fit your work and personal needs, then there’s a huge range of desirable models on offer – from affordable city cars to luxury SUVs. Here’s our pick of the 10 best electric company cars.
-*BMW i4 eDrive40*-
If you’re looking to shrink your company car tax bills but find the all-too-common futuristic styling of an EV unappealing, then the BMW i4 should definitely be on your shopping list. Barely distinguishable from the fuel-burning 4 Series Gran Coupé with which it shares a platform, it’s the closest thing the UK gets to a electric version of the fleet-stalwart 3 Series. BMW’s brand-defining driving dynamics are totally uncompromised, now paired with a 335bhp rear-mounted motor that delivers brisk, but near-silent, acceleration while eking 367 miles from the 84kWh battery. With an annual BIK bill of £463 for a higher-rate taxpayer, it offers all of the savings but without shouting about it.
-*Ford Mustang Mach-E RWD*-
Having missed the mark a bit with the Focus Electric 10 years ago, Ford pulled out all the stops with its first from-scratch electric SUV, and it shows. Despite some controversy about reusing the Mustang name, the Mach-E shapes up as one of the best all-rounders on the market. There’s a choice of two battery options, the larger of which offers a range of up to 372 miles if you can live without four-wheel drive, and you’ll get 73 miles back in 10 minutes at a 150kW charger. Better still, the annual BIK bill for those motorway-friendly credentials is just £237 for a 20% income taxpayer.
-*Hyundai Ioniq 5 73kWh Premium RWD*-
Few cars have managed to shake up the established order quite as much as the eye-catching Ioniq 5. With an angular exterior treatment and a spacious interior that clearly takes its cues from minimalist loft living, the Korean machine has successfully lured drivers out of premium-brand rivals. What’s more, the all-electric Ioniq 5 backs it up with a compelling driving experience that melds engaging handling and effortless electric performance with a cosseting ride and superb refinement. It’s also good value, with BIK bills from £174 per year for a 20% taxpayer – however, we’d stump up an extra £14 to upgrade to the larger battery and 315-mile range.
-*Jaguar I-Pace EV400 SE*-
One of our favourite EVs, the Jaguar I-Pace stole a march on rivals when it beat them all to the EV punch. Not only was this the first upmarket all-electric SUV, but it was and is also one of the best, particularly from behind the wheel. Despite its high-riding stance, the I-Pace handles with the agility and involvement of something half its size, while its muscular twin-motor set-up channels 395bhp through all four wheels for rapid acceleration, and it can crack 292 miles on a charge. It’s also beautifully finished and spacious inside, with the latest Pivi Pro infotainment keeping you connected on the move. As a company car, it’ll cost higher-rate earners as little as £560 in tax, though we’d suggest spending an additional £28 to step up to SE trim.
-*Kia EV6 226bhp RWD GT-Line*-
The EV6’s broad spread of talents and distinctive coupé-SUV design took the ‘Best Electric Car’ title during the 2022 Autocar Awards, and it’s still a strong contender. Based on Hyundai-Kia’s EV-only platform, it offers an engaging drive and there’s a GT version with a whopping 577bhp. However, the 226bhp rear-wheel-drive version in GT-Line trim is our pick of the line-up, providing enough pace to entertain and a range of 328 miles. It’s practical too, with plenty of kit and interior space, ultra-fast charging to 80% in 18 minutes and a towing capacity of up to 1600kg. With an annual BIK bill of £183 for a basic-rate income taxpayer, it’s a bit of a bargain too.
-*Mercedes-Benz EQE 300 AMG-Line*-
If you’re a thrusting executive looking for business wheels to impress, then a saloon car adorned with the three-pointed star ought to do the trick. The EQE is effectively an electric E-Class, though the two cars are unrelated – the platform is shared with the larger EQS saloon and designed purely for battery power. With a streamlined silhouette, it offers a range of up to 388 miles but with more cabin space than its fuel-burning counterpart and a choice of sporty or luxurious trim levels. If your company car allowance stretches far enough, then the entry-level model would cost a higher-rate taxpayer just £594 per year – that’s 90% less than the cheapest diesel E-Class.
-*MG 4 Trophy Long Range*-
You don't have to spend big to secure a stylish and entertaining company car. Proving to be something of a surprise, the MG 4 takes the value-for-money proposition of the brand's other cars and weaves in some genuine driver appeal and a dash of company car park cachet. The angular lines attract attention, while the handling strikes a fine balance between agility and everyday comfort. The range-topping Trophy also manages to deliver warm hatch pace courtesy of its rear-mounted 201bhp motor, while claiming an impressive range of 281 miles from its 64kWh battery. Even in this flagship guise, the MG adds just £130 a year to a lower-rate earner’s tax bill.
-*Skoda Enyaq iV 80*-
Underpinned by the same EV-only MEB architecture as the Volkswagen ID 4, but with a typically Skoda twist of providing more space for less cash, the Enyaq is one of our favourite electric cars. It isn’t a born entertainer, but it’s easy-going, with excellent refinement, a controlled ride and an interior that surpasses those of its more expensive VW and Audi siblings for upmarket appeal. There’s a choice of 58kWh (badged 60) and 77kWh (80) batteries, with the former being the most cost-effective for business users. Even the pricier 80 will cost a lower-rate taxpayer just £171, yet it will deliver a claimed range of 338 miles.
-*Tesla Model 3 Long Range*-
The Model 3’s desirability as a company car has played a big part in its swift rise to the top of the UK sales charts, and a price cut earlier this year has only bolstered that appeal. Taking over where the Model S left off, the less pricey model mixes the same compelling blend of performance and long range with a similarly spacious and tech-laden interior. Yet it also throws in some genuine driver engagement, feeling far more alert and up for a laugh than any of the brand's other models. The line-up is simple, with the standard RWD model at one end and the 449bhp variant at the other. The four-wheel-drive Long Range provides the sweet spot, being almost as fast yet capable of 374 miles on a charge, and landing higher-rate earners with a BIK bill of just £407.
-*Volkswagen ID 4 Life Edition 77.4kWh Pro*-
The ID 4 is arguably the most important all-new Volkswagen nameplate in a generation. It’s a Tiguan-sized electric SUV but with cabin space maximised by the car maker’s wheelbase-stretching electric vehicle platform and compact drive units. Mild-mannered and with an intuitive, minimalist interior, it’s a line-up with real breadth, spanning from the £38,845 entry-level version to the sporty(ish) GTX. Our tip would be the larger of the two battery options and rear-wheel drive. A £178 BIK per year for a 20% income taxpayer is only £23 more than the most basic model but extends the range from 223 to 325 miles.
