Choosing the right company car in 2025 is about far more than appearance or performance. With rising fuel costs, stricter emissions regulations and Benefit-in-Kind (BIK) tax playing a major role, company car drivers now need vehicles that balance tax efficiency, comfort, reliability and everyday running costs.

Here are five of the best cars for UK company car drivers in 2025, based on real-world suitability rather than marketing hype.

1. Tesla Model 3

The Tesla Model 3 remains one of the most popular company cars in the UK, largely due to its excellent tax efficiency.

Why it works well as a company car:

• Very low BIK tax due to zero emissions

• Strong real-world electric range (over 250 miles for most drivers)

• Impressive performance even in entry-level versions

• Access to a mature and reliable charging network

For drivers covering moderate to high mileage who have access to home or workplace charging, the Model 3 offers one of the lowest tax burdens of any company car in 2025.

2. BMW 3 Series Plug-in Hybrid (330e)

The BMW 330e continues to be a popular choice for professionals who want premium comfort with reduced tax exposure.

Key benefits:

• Plug-in hybrid system lowers BIK tax compared to petrol or diesel models

• Smooth and refined driving experience

• Excellent fuel economy on shorter journeys when charged regularly

• High-quality interior and strong professional image

The 330e is particularly well suited to drivers who commute short distances during the week but still need petrol power for longer trips.

3. Volkswagen ID.4

Electric SUVs are increasingly common on UK company car schemes, and the Volkswagen ID.4 is one of the most practical options available in 2025.

Why it stands out:

• Fully electric with low BIK rates

• Practical SUV body style without being overly large

• Comfortable ride, especially for motorway driving

• Good balance between range, space and price

The ID.4 is ideal for company car drivers who want extra room compared to a saloon but don’t need a large or expensive premium SUV.

4. Toyota Corolla Hybrid

Not every company car driver wants, or is able to move to a plug-in or fully electric vehicle. The Toyota Corolla Hybrid remains one of the most sensible low-emission choices in 2025.

Strengths include:

• Proven hybrid technology with an excellent reliability record

• Very good fuel economy in town and on longer journeys

• Lower emissions than traditional petrol cars

• Low maintenance costs over long-term use

For employers and drivers prioritising reliability and predictable running costs, the Corolla Hybrid continues to make a lot of sense.

5. Skoda Octavia iV (Plug-in Hybrid)

The Skoda Octavia iV combines practicality and value while keeping BIK tax lower than many petrol or diesel alternatives.

Why company drivers rate it highly:

• Spacious cabin and large boot, ideal for business use

• Plug-in hybrid system helps reduce tax costs

• Strong value compared with premium-brand rivals

• Comfortable and well suited to higher-mileage drivers

It’s particularly well suited to sales professionals, engineers and anyone needing space without opting for an SUV.

What Makes a Good Company Car in 2025?

When choosing a company car today, both drivers and employers should consider:

• Benefit-in-Kind (BIK) tax rates

• Fuel or charging costs

• Reliability and servicing needs

• Comfort for long-distance driving

• Practicality for daily business use

Electric vehicles now dominate many company car schemes due to favourable tax treatment, but hybrids and low-emission petrol cars still have their place depending on how the vehicle will be used.

Final Thoughts

The best company cars in 2025 are those that strike the right balance between tax efficiency, running costs and day-to-day comfort. Fully electric models such as the Tesla Model 3 lead the way for low BIK tax, while hybrids like the BMW 330e and Toyota Corolla Hybrid continue to offer flexibility and reliability.

Before choosing, it’s important to consider your mileage, access to charging and how the car will be used day to day. A well-chosen company car can save thousands of pounds over the life of the agreement, both for drivers and employers.