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A list of the most tax-efficient company cars you can buy in the UK.
Over recent years, the act of giving employees a company car, a vehicle that staff members can use to travel to work and visit clients, has risen and grown.
Many prospectus employees see a company car as a core benefit that a larger organisation must offer to be seen as an excellent workplace. They will likely apply for a position that offers this over a business that doesn’t, meaning that it’s essential that companies provide the right kind of vehicles.
When looking at standard car models that are often used as company cars, you may notice that these vehicles share a lot of traits and similarities. They are efficient, stylish, and have good technology and features to make commutes and business trips more bearable.
However, above everything else, a good company car will be a vehicle that has low emissions so that they are less expensive to tax. This is important for a company car because the lower the tax, the less an employee has to pay out of their salary towards the vehicle, helping to save them money.
Thankfully, many great vehicles can make good company cars, although some are far greater than others. To help you choose the right cars for you and your business, here’s our Car Adviser list of the top 10 company cars for tax purposes in 2023.
If you’re looking for different kinds of cars or cars that better suit other situations, we also have plenty of other lists that you can find here on Car Adviser.
The BMW 3 series is already a well-renowned saloon car and has always been an excellent option for working professionals over the years as it oozes class and elegance. However, past iterations may not have been the most economically viable.
With BMW now offering an electric version of the 3 Series, getting one as a company car is a no-brainer, as you’ll be able to experience all the features that make BMW great and enjoy low emissions and costs.
Despite being a hybrid option, this BMW 3 Series is still incredibly fun to drive, offering great power and tight handling. It cruises well on the motorway and is firm and controlled, making it a comfortable vehicle to drive often.
There’s a lot of interior space in the vehicle, so you won’t feel crammed in, although boot space may be an issue that makes it less practical. This is because the hybrid battery is stored under the boot, compromising how much you can store there.
Being a Hybrid vehicle, the 3 Series 330e has a good BiK rate, which is a score that influences how much tax you have to pay on the car. With a 10% BiK rate, it’s far better than a regular BMW 3 Series, which can usually be up to 37%.
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If you’re looking for a cheap company car, one of the best options is Volkswagen ID.3. This entirely electric car focuses on comfort and practicality.
Unlike many of the staple company cars, this is a hatchback, not a saloon or coupe, meaning there’s much more storage space than usual, which can be great if you need it for long business trips.
With a BiK rate of next to nothing, you’ll be paying very little out of your salary to drive this car for work, making it a very sensible option.
That said, this car is sensible in various aspects, as it’s got great safety features, has excellent interior room for the driver and passenger and has a great range on a single charge as well.
It’s not the fastest car you can get and may feel a bit sluggish and lifeless when trying to build up speed. It’s also not the flashiest, so it may not be a good choice if you want a company car that excites and screams success and elegance.
It’s also a car that relies on touch screens for its controls, so there may be better options for drivers who prefer something a bit more tactile and less fiddly.
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Tesla is a trendy electric car brand, and currency sits as the market leader among these types of vehicles. As a result of its prestige and reputation, Tesla cars have become a great option to have as a company car, especially as their electric technology makes them very cheap to pay for.
One of the best models you can currently get is the Model 3, a futuristic yet minimalist saloon car. Although not the most spacious option, there’s still plenty of room for a passenger, and it also gives you insane mileage per charge, which frankly changed the game when this car first came out.
Of course, Tesla’s most significant selling point is all the gadgets and features that the car includes, such as its ability to self-drive and park, not to mention other exciting features.
The only issue is that getting a Tesla that has it all can cost a fair amount, but that should be alright as it can become a taxable asset when used as a company car.
Driving a Tesla can give you a taste of the future, as it feels like a new iteration of the car, and that can get a lot of staff very excited. The only issue with the Tesla is that it may not be the most practical and may not be a car that suits everyone.
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The Skoda Superb is yet another hybrid car that could be a great company car for tax purposes. The saloon car blends the practicality of typical Skodas with style and performance, creating a complete package you will enjoy driving.
The Skoda has some of the best boot and cabin size dimensions for these cars, making them super practical and roomy. The car also has a great suspension that gives it a comfortable ride that’s perfect for mid-range and shorter commutes to work.
The Superb iV could be more exciting to drive, with loose handling that can make it a bit dull and unexciting.
If you’re looking to get a Skoda Superb iV as a company car, the plug-in hybrid is perhaps the best option, as this car has a BiK rating of 10%, which helps to keep the tax costs down to make it an economical car to use as a company vehicle.
The plug-in hybrid may not have the best miles per gallon compared to other Superbs, but it should still have enough to get you from A to B regularly.
If you need a company car for longer business trips, then you may be best served to get something with better mileage so that you’re not refuelling or recharging as often.
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The Kia e-Niro is a unique choice for a company car because instead of being a saloon or hatchback, it’s instead a much larger and more commanding SUV. This car has a presence on the road, with its increased size giving you a better driving position than most other cars.
The Kia e-Niro gives you all the practicality you would expect from an SUV, offering plenty of space for backseat passengers and excellent boot space. Even if you get an e-Niro with a bigger battery, you’ll still have impressive boot space that should be able to store all your work equipment.
This type of car best suits a working professional who can also benefit from using the car in their personal life too. The car is fully electric and has a great range of 282 miles, making it a good option for many long-distance trips.
The Kia cruises at a good pace, although it can feel like it lacks power because of its larger size. It controls well and feels nice at lower speeds, but it may struggle to keep up with other traffic on a faster road like a duel carriageway or motorway. That said, it’s a smooth and comfortable car that’s quiet to drive and relatively relaxing.
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