The best small company cars for tiny BIK rates

Our choice: Audi A3 35 TFSI 

It’s perhaps unkind to call the Audi A3 Sportback a VW Golf in a posh suit, but in many respects that’s exactly what it is. Underpinned by the same MQB platform and using largely the same range of engines, the Audi offers similar levels of space, poise and performance, but wraps it up in a more stylish package that benefits from the greater kudos that comes with the four-ringed badge on its front grille. 

Like the Golf, the A3 has been treated to a mid-life refresh that extends to sharper exterior design and an even more upmarket interior. As before, there’s also the option of a three-box saloon version for those wanting that traditional company car vibe. However, for now both miss out on the VW’s more powerful plug-in hybrid powertrain, so for most business users the 148bhp 1.5-litre petrol in the 35TFSI remains the best bet even if its 31% BiK rating is on the high side. That said, it’s also available with a six-speed manual option, adding extra driver engagement to an otherwise capable but cold package.

Our choice: Renault Clio E-Tech Hybrid

Our reigning supermini champ makes plenty of sense for those looking to downsize their company car. Smart and stylish with surprisingly grown-up driving manners, the Renault Clio is a small car that doesn’t leave you feeling shortchanged. It’s interior serves-up just enough room for it to double as occasional family transport, while the tight build quality and use of classy materials (including a natty fabric trim strip for the dash) help the Renault impress on business outings.

On the move the typically fluid French ride and handling balance helps keep drivers entertained, yet also serves- up impressively refined and comfortable long distance progress. Then there’s the car’s clever petrol-electric drivetrain that has enough urge for confident outings into the outside lane, but will also cover most urban excursions in pure electric mode. Better still, it delivers low enough CO2 emissions to attract a 24% tax rate, which in combination with its attractive asking prices results in much more manageable BiK bills. 

Our choice: Peugeot e-208 Allure

For user choosers whose daily work duties consist of lots of short hops or daily commuting to and from the office, then going fully electric for their next company car is well worth considering. If you take the plunge, the Peugeot e-208 should be bubbling away at the top of your shortlist, especially if you’re usually traveling one-up on your business assignments

For starters, the battery-powered French supermini is ridiculously cost-effective for business users, with a 2% BIK rating meaning lower rate earners will only sacrifice £131 a year in tax, even for the most expensive 156bhp GT model. Lower spec versions use a 134bhp electric, which frankly delivers all the performance you’ll need - there’s enough acceleration that you’ll rarely be bested in the traffic light grand prix.

With a 50kWh battery the Peugeot has a handy range of 224 miles, while 100kW charging means you’ll rarely have to stop for more than half an hour at rapid charging stations. Better still, it and it’s just about roomy enough to double as family transport, while the reasonably softly suspended chassis serves-up a decent blend of supple ride comfort and handling elan.

Our choice: Mini Cooper SE

The original electric MINI Cooper was big on fun but small on range, but for this all-new model the British brand has injected a little extra stamina. In fact, on the flagship Cooper SE (there’s also cheaper and less rangy Cooper E), battery capacity has been increased from the old car’s 28.9kWh to a far handier 49.2kWh. That means a useful claimed range of 224 miles, not far off twice the distance of its predecessor.

However, this boost in battery capacity has also come with an overall increase in size, to the point that it’s a bit of a stretch to call the car a MINI. Still, it’s the most roomy three-door the firm has ever made, while the interior features enhanced premium appeal and some glitzy looking tech.

Crucially, the MINI retains enough of its trademark agility and back road boisterousness (not to mention occasionally hyperactive ride) to keep things interesting, with fast steering, strong grip and a low roll stance. And when you’ve had your fun on the way home from work you can relax in the knowledge that you’re paying a piffling 2% BiK bill.

Our choice: MG 4 SE Long Range 

It’s no understatement to say that the MG4 has proved to be one of the bigger surprises of the last few years. Up until its debut in 2022, the Chinese MG brand had been turning out rather dynamically dull but worthy machines that featured eye-catching prices and long warranties. Yet with its all-electric MG4 family hatch the firm became an instant class-leader.

Like other models in the MG range, the MG4 comfortably undercuts the competition on price, but in this case it does it with some head-turning style and an interior ambiance that’s closer to premium offerings than you’d think. 

It’s also great to drive, with biddable handling and a decent turn of speed, even in entry-level 158bhp guise. And apart from a firm low speed gait it rides bumps with an easy-going aplomb For those seeking some high voltage entertainment then there’s the wild 429bhp twin motor X-Power flagship.

There’s a range of battery options, with everything from 51kWh to 77kWh. However, it’s the 64kWh version in the SE Long Range that delivers the best blend of distance (281 miles) and price (a whisker under £30,000). With a 2% BIK rating it'll cost lower rate earners a maximum of just £118 in tax. 

Our choice: Toyota CH-R PHEV Excel

Toyota went for bold with its second generation CH-R, which builds on the success of the original with an even more eye-catching design. With its coupe-inspired looks and neat two-tone paint job the high-riding crossover easily stands out from the company car crowd.

The interior has been given an equally thorough going-over, with a neater design and an extra injection of premium appeal. It also benefits from Toyota’s latest and easier to use infotainment, plus an array of advanced driver aids, which will be music to any fleet manager grappling with the company car risk assessment spreadsheet. 

Less impressive is the amount of room for rear seat passengers, who will be made to feel even more cramped by the tiny side windows. Accommodating the hybrid running gear also shrinks the boot to supermini-sized 310-litres

On the plus side, there’s plenty of substance to go with the style. Thanks to the  brand’s TNGA architecture, the CH-R is good to drive, with naturally balanced handling and a supple ride. It’s also boosted by a new, smoother and more refined plug-in hybrid drivetrain that develops 220bhp and claims 41 miles of EV running for an 8% BiK rating.

Our choice: Kia Niro EV 3

The latest Kia Niro kicks on from where its predecessor left off, combining a heavily electrified engine line-up and low running costs with a decent dose of practicality. However, the second generation machine stirs into the mix some head-turning style and a greater dollop of driver appeal.  As before, there's a choice of 'self-charging' and plug-in hybrid versions, plus the all-electric Niro EV. 

For retail buyers and company car users alike it’s the EV that's the pick of the line-up, thanks to its blend of value, performance and price. The range of just over 280 miles is largely unchanged over the old car, as is the 201bhp output of the electric motor, but the power delivery is smoother now, while the improved rolling refinement gives the Niro a more grown-up appeal. And while it doesn't offer much in the way of driver engagement or handling adjustability, it's composed, accurate and grippy when the going gets twisty.

Of course, the big draw for business users is the EV’s rock bottom 2% BiK rating, which means you could pay as little as £150 a year in company car tax.

Our choice: Volvo EX30 Single Motor Extended Range Plus

It’s a small SUV, but Volvo is hoping for big things from its all electric EX30. Cleverly designed to keep purchase costs down, the Swedish machine certainly looks the part while the cool Scandi minimalism of its interior is not without appeal.

It’s quick too, with even the basic version packing a 268bhp punch. Move-up to the 422bhp Twin Motor model and you’re treated to a supercar-slaying 0-62mph time of 3.6 seconds. Not bad for a whisker over £40,000. Of course, the rest of the car can’t manage sports car dynamism, but the handling is accurate and the ride is controlled if a little lumpy. 

Then there’s the fact that they all fall into a low 2% BiK banding, meaning company car users pay peanuts in tax. It’s also well-equipped and reasonably refined, even if it isn’t the most practical or spacious small SUV choice. However, the biggest gripe is reserved for the infotainment system, which is tricky to use and houses far too many commonly used functions.

Still, if you can get past this (quite large) quirk, then the Volvo offers quite a lot of dash - in all senses of the word - for not a lot of cash.