Unsurprisingly, a large portion of UK car sales come from company car fleets. Being able to offer a potential employee the perk of a vehicle is an attractive proposition few would refuse. It could help your business net the best minds, whilst simultaneously it can add to your brand image and appeal. And that’s where the best company cars come in: they combine elegant looks and a professional air, with practicality, space, and comfort. Of course, they also offer low Benefit-in-Kind taxation.

What is Benefit-in-kind (BIK) tax?

Employees who are lucky enough to receive a company car for private use, being allowed to take the car home after work, will also have to pay the taxman the Benefit-in-Kind value. Why? Because the government considers company cars a fringe benefit. The price to pay depends on the vehicle and its CO2 emissions with the figure calculated by taking a percentage of the P11D value (the car’s price, including VAT, delivery charges, and any extras). Whilst it’s best to select the company car you think is right for the needs of your business, the BIK tax can be utilised as a deciding factor to choose between makes and models.

Benefits of giving employees a company car

Thinking of providing your employees with a company car? Here are some of the benefits to consider. Typically, company cars:

  • Ensure staff have transportation to the office and any additional working sites
  • Are ideal for field-based employment and travelling sales teams with lots of driving from location to location
  • Are an excellent recruitment strategy
  • Improve employee satisfaction and relations
  • Improve company image
  • Allow companies to claim Capital Allowances to gain relief on the initial purchase price
  • Allow businesses to reclaim VAT on fuel costs

The top 10 best company cars

To provide extra peace of mind and security when driving to and from work, all the cars on this list scored an impressive five stars out of five in rigorous Euro NCAP safety tests. Now, read on to find out our top 10 best company cars.


When it comes to the best company vehicles, the BMW 5 Series is at the top. The mid-size executive car is oozing with premium appeal and professionality. It arrived in the 1970s and since then it has consistently been a front-runner in its segment, with one key feature that has remained a constant: the 5 Series is involving and a lot of fun to drive. It has solid build quality too, and it enjoys high levels of technology.

The exterior styling projects a dignified and corporate air, whilst the interior is spacious and suitably plush, lined with soft materials for comfortable journeys. Practical, with reasonable running costs and a good range of engines, including a plug-in hybrid, the BMW 5 Series ticks all the right boxes with added flair.

It’s also very safe, with a full five stars out of five from 2010 in Euro NCAP safety tests.

Best features:

  • Lots of fun to drive
  • Solid build quality
  • Spacious and stylish



Skoda’s executive car might not carry the brand appeal of renowned marques like BMW, yet the Superb is suitably named, proving to be an excellent all-rounder of a vehicle that is well-suited for use as a company car.

At just over £25,000 brand new, it has a bargain starting price that is particularly cheap for the sector and there are fantastic used deals as well. At these prices, the Superb provides a lot for your money. It has good levels of luxury, with an upmarket, high-quality cabin, excellent practicality, and a huge amount of interior space, which is perfect for long distance journeys.

Its exterior is stylish too, with a sophisticated design that looks the part. In its third generation, the Skoda Superb certainly holds its own against rival executive cars from premium marques such as BMW and Mercedes-Benz.

Best features:

  • Bargain starting price
  • Sophisticated and stylish
  • Very spacious interior



The all-electric Tesla Model 3 is a state-of-the-art EV that is every bit as exciting as its fossil fuel counterparts and then some, brimming with cutting-edge technology and leading driver assist systems.

Top-spec models also boast supercar beating performance, with a blisteringly fast 0-60mph in only 3.1 seconds. Whilst that kind of performance won’t be necessary for a company car, it does showcase the brilliance of the engineering and design. And you can see that throughout the mid-size executive vehicle, from its fantastic battery range, to its ergonomic and spacious cabin, which is very comfortable and practical.

Add to that mix the capability for autonomous driving (once motoring laws allow it and with the car equipped with the class-leading Self Driving package) and it’s very easy to see why the Tesla Model 3 is the world’s best-selling electric car.

Best features:

  • Cutting-edge technology
  • Leading driver assist systems
  • Fantastic battery range



Available in various body types, as a saloon, estate, coupe, and convertible, the Mercedes-Benz E-Class is a smaller version of the company’s flagship S-Class, which is a leader in the premium sector. We mention this point because the ground-breaking technology in the S-Class rolls down to the E-Class, resulting in a brilliant executive car that is brimming with luxury appeal.

Refined, upmarket, and seriously comfortable, the E-Class has a segment leading cabin that is finished with plush materials, offering a truly deluxe commute to work. Overall, it is a very elegant car.

It’s also spacious and practical, plus it’s available with a choice of powertrains, including diesel, petrol, and two plug-in hybrids.

Best features:

  • Segment leading cabin
  • Refined and comfortable
  • Luxury appeal



compact crossover SUV that’s one of the safest vehicles on the market. Introduced in 2017, this crossover has a stylish exterior and strong build quality, along with a very comfortable cabin that enjoys a range of high-end materials. Add to this mix a refined driving experience and you have a recipe for success and a vehicle that’s perfect as a company car. It comes with an excellent choice of engines and is now available as a plug-in hybrid too.

If employers want to spoil their workforce, you can add extras like heated front seats and opt for the Momentum trim, which comes with rear parking sensors, cruise control, a high-tech infotainment system, and more.

Best features:

  • Class-leading safety
  • Strong build quality
  • Comfortable and refined



In its eighth generation, the popular Volkswagen Passat has been around since 1973. It’s a top-selling car in the UK and it’s easy to see why. It has excellent build quality, a fantastic range of engines, including a plug-in hybrid, and it offers an incredible amount of interior space, whether in the guise of the saloon or estate body types.

It’s also very practical with a generous boot, plus it is an excellent long distance cruiser – perfect for field-based employment.

In addition, the Volkswagen Passat looks every bit the part of a company car, with reserved, yet dignified styling and a luxurious cabin, tailored towards comfort and refinement.

Best features:

  • Excellent build quality
  • Luxurious cabin
  • Excellent cruiser



Another long-running vehicle, the BMW 3 Series is an executive saloon launched in 1975. It’s now in its seventh generation and it continues to be a frontrunner in its segment. It is also the best-selling car for BMW, accounting for nearly 30% of the renowned marque’s global car sales.

As you’d expect from the brand, the 3 Series has strong build quality and fantastic driving characteristics, all wrapped in a highly attractive exterior design that is suave and sophisticated. It projects a corporate and professional image and it provides an upmarket cabin that is practical, spacious, and comfortable.

It comes with a good range of engines, and has hybrid and plug-in hybrid options as well. Furthermore, it enjoys a smooth driving experience that is refined and quiet.

Best features:

  • Fantastic to drive
  • Refined and quiet
  • Practical and spacious



The Kia e-Niro is a small SUV that is an outstanding all-electric vehicle. If you’re looking for a company car with green credentials, the e-Niro is certainly worth checking out.

It’s offered with two battery sizes: a 64kWh option that has a real world range up to 282 miles, and a 39kWh version offering up to 180 miles. Both are quick to charge up to 80 percent, with a 100kw direct current (DC) charging the lithium-ion polymer batteries in just 54 minutes.

The practical vehicle is spacious and surprisingly fun to drive, enjoying precise handling and nimble acceleration that is typical of an EV. Adding to its appeal is the stylish exterior design and Kia’s brilliant 7 year/100,000-mile warranty.

Best features:

  • Impressive range
  • Quick to charge
  • Fun to drive



One of the longest running vehicles in automotive history, the Toyota Corolla arrived in 1966 and is now in its twelfth generation. To add to its accolades, it is also the world’s best-selling nameplate, which is quite an achievement.

Currently offered with three body styles (as a hatchback, an estate, or a saloon), the latest Corolla is an enjoyable compact car to drive that is comfortable and quite practical – important facets to consider for any company vehicle. It’s also available with a couple of hybrid powertrains for businesses looking to bolster their eco-credentials, and it offers low-running costs too.

Furthermore, the latest models are up there with the best in the styling department, with charismatic looks for the sector.

Best features:

  • Enjoyable to drive
  • Charismatic styling
  • Low-running costs



One of Britain’s best-selling cars, the popular Ford Focus has been a hit with drivers from the day it was released way back in 1998. A mainstay in many top 10 lists, this medium sized car is now in its fourth generation, continuing to be a stylish choice and one of the best to drive in its class, with well-balance and well-weighted steering.

It is available as a hatchback or an estate, and it comes with a great range of efficient engines, as well as a mild hybrid option too. Whatever body type you choose, you’ll be getting a car that has segment leading interior space and good levels of practicality.

To round it all off, the Focus has an excellent five star safety rating with Euro NCAP.

Best features:

  • Class-leading to drive
  • Stylish looks
  • Spacious interior


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Back to articles March 25, 2021

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