The company car landscape has shifted dramatically since the days when a Ford Granada GL or Vauxhall Carlton CDX would have graced the corporate car park. Today’s executive transport comes in the form of the PHEV – the plug-in hybrid electric vehicle.
It is a marriage of conventional internal combustion engineering and cutting-edge electrification.
At their heart lies a traditional engine – a configuration that would be familiar to any fleet manager from the past 50 years – complemented by an electric motor and rechargeable battery pack. In these configurations, the battery is replenished via a physical charging cable instead of their ‘self-charging’ hybrid predecessors.
The benefits of the PHEV system become apparent in daily use. Most users will find the electric range – typically 30 miles or more – sufficient for their daily commute.
The presence of a conventional engine means no range anxiety and ensures these cars retain the ability to travel the length of the UK – which made company cars such an essential business tool in the first place.
But it’s in the area of benefit-in-kind taxation (BIK), company car tax to you and me, where PHEV cars truly demonstrate their worth.
Company Car BIK Explained
The Government will always find ways to tax you for the privilege of having a company car. The tax rate depends primarily on two things: the car’s CO2 emissions and your tax bracket.
For plug-in hybrids, it’s the electric range that matters. Cars capable of 70-plus miles of zero-emission running attract just 5% BIK, those managing 40-69 miles are rated at 8%, while anything less drops into higher bands – typically 12% and above.
Pure electric vehicles currently sit in the 2% bracket, while traditional petrol and diesel cars can attract tax rates as high as 37%.
The calculation is simple: multiply the car’s P11D value by the BIK percentage, then by your personal tax rate (for example, 20%, 40%) – the result is your annual tax bill.
It’s why you will see so many plug-in hybrids in corporate car parks these days – they offer significant tax advantages over conventional combustion engine cars, particularly for higher-rate taxpayers.
We have looked at the usual prestige brands, as well as some of the practical daily workhorses.
Prestige Brands
Range Rover P460e
There’s something about the way a Range Rover goes about its business. After more than half a century, it remains the definitive statement of automotive success.
This latest iteration from Range Rover, if anything, is even more imperious than its predecessors.
Yes, the price tag is enough to make the company CFO wince, but here’s the clever bit – the new P460e powertrain, with its genuine 70-mile electric range, attracts the same BIK rate (8%) as a humble family hatchback. This means that for higher-rate taxpayers, this most aspirational of vehicles will cost less in monthly contributions than something less luxurious.
Perched in that commanding driving position, while underneath the air suspension smooths surface imperfections. Opt for the four-wheel steering, and you’ll discover a car that can thread its way through urban traffic with the agility that would shame many a hot hatch.
Though few owners will ever venture further off-road than the gravel drive, it’s worth noting that this remains a very capable vehicle when the going gets rough.
Porsche Panamera Turbo E-Hybrid
It is absurd that a near two-tonne luxury saloon that can embarrass supercars only attracts an 8% BIK rate.
The numbers are frankly outrageous: 671bhp from its combined V8 and electric motor, 0-62mph in 3.2 seconds and a top speed knocking on the door of 200mph. More impressive still is how it carries its considerable bulk through corners, displaying the poise and precision that would shame many a sports car.
The recent updates have sharpened both the looks and the dynamics, while the interior remains a masterclass in luxury. Yet it’s the new 25.9kWh battery that’s perhaps most significant, delivering a 59-mile electric range and, crucially, dropping the BIK rate to just 8%.
It’s a remarkable achievement – the latest Panamera Turbo E-Hybrid is a genuine four-door supercar that can double as a tax-efficient company car for business users.

BMW 530e
Half a century after BMW’s original 5 Series emerged into the world, they have delivered the seventh generation of Munich’s middle-manager favourite. The new G60 has somehow morphed into something approaching the dimensions of its 7 Series bigger brother.
Behind that substantial grille lies a cabin that’s absolutely dripping with technology (except the infotainment system, which needs a NASA scientist to operate it).
The real masterstroke, though, is the 530e plug-in hybrid system.
Gone are the days of silky straight-sixes, replaced by a 2.0-litre turbo petrol working in harmony with a punchy electric motor. Together they serve up 295bhp – enough to accelerate to 62mph in 6.2 seconds – plus it has 60-plus miles of electric range.
For company car drivers, that means a mere 8% BIK rate – the kind of figure that will keep your accountant happy.
It’s not the most emotional choice in this group, and despite its generous proportions, this 530e still buzzes down a B-road as you would expect of a BMW. The steering has got proper weight and feel, and there’s just enough rear-driven adjustability to remind you what badge you are driving.
Audi Q5 TFSI e
Audi Q5’s approach to electrification is reassuring. The plug-in hybrid version of their mid-size SUV comes in two flavours: the 50 TFSI e with 299bhp and the more potent 55 TFSI e producing 367bhp, both combining a 2.0-litre turbocharged petrol engine with an electric motor.
At the heart of both variants is a 17.9kWh battery, which enables an official electric range of 37 miles – landing these premium SUVs in the 12% BIK bracket.
Not as low as the others in this group, but the execution is pure Audi, with the characteristic blend of refinement and quattro-enhanced dynamics we have come to expect from them.
The interior remains a masterclass in understated premium appeal, while the integration of the hybrid system is handled with typical German thoroughness. It delivers exactly what you’d expect of an electrified Audi SUV, albeit one that comes with a predictably premium price tag.
Mercedes-Benz C300e
While other premium badges may come and go with the changing of fashion, the three-pointed star continues to radiate quiet authority from executive offices.
Beneath that traditionally restrained exterior of the C300e lurks a modern approach to performance and efficiency.
The mating of the turbocharged four-pot engine and electric motor might not sound particularly glamorous on paper, but the combined 308bhp tells only half the story. Hidden away is the genuinely useable 70-mile electric range, which places this compact Mercedes firmly in the 8% BIK territory.
With a 0-60mph time of 6.0 seconds, the straight-line performance is a pleasant diversion from this car’s true purpose. While the BMW 3 Series remains the weapon of choice for those who regard every road as a race track, the Mercedes takes a more measured approach.
The handling is precise rather than passionate, but it’s the sublime refinement and exceptional ride quality that really set this car apart.
It’s a thoroughly modern interpretation of what a Mercedes should be and will keep the brand at the top of the corporate wish list for generations.
Lexus NX 450h+
While others have rushed headlong into the brave new world of pure EVs, Toyota’s luxury arm has instead refined its hybrid expertise into something genuinely worthy of a top executive.
The range-topping 450h+ combines a 2.5-litre four-cylinder petrol engine with a pair of electric motors to deliver a combined 309bhp – enough to reach 62mph in a respectable 6.3 seconds. Significantly, the 18.1kWh battery provides 40-plus miles of electric running, securing that all-important 8% BIK rating.
Refinement has become something of a Lexus trademark, while the latest generation NX has taken a significant step forward in terms of both dynamics and interior quality. The fiddly touchpad interface of old has finally been replaced in favour of a more conventional touchscreen, though some of the ergonomics remain distinctly Japanese.
It’s not the most obvious choice in the premium SUV segment. Sometimes swimming against the tide makes perfect sense.
Practical Daily Workhorses
Peugeot 508 SW PSE
Peugeot’s decision to let its motorsport division loose on an executive estate car is rare – the result, the 508 SW PSE – a practical family lugger with genuine sporting credentials.
The chassis upgrades with bespoke dampers, wider tracks, and revised steering deliver the sort of handling precision that recalls Peugeot’s golden era of hot hatches (205 1.9 GTi comes to mind).
The 335bhp plug-in hybrid powertrain provides plenty of punch, yet it hasn’t come at the expense of comfort or refinement.
Inside, it’s a modern interpretation of premium French design, while the SW body offers a useful 530-litre boot. Yet there is a substantial fly in the ointment. A £55,000-plus price tag combined with a modest 26-mile electric range drops it into the 12% BIK bracket.
It’s an alternative to those listed below, but one that comes at a price in more ways than one.
Skoda Superb iV
Fresh from a mid-life revamp that’s delivered more visual swagger and interior polish, the Czech challenger continues offering the most appealing combinations – “value” wrapped in a thoroughly capable package.
The interior cabin is vast enough to make a Mercedes S-Class feel cramped, while the boot would shame many a small LCV van. Yet it’s the newly enlarged 25.7kWh battery that’s the headline act, delivering a genuine 60-plus miles of silent running, and, crucially, it comes in at the 8% BIK rate.
The 204bhp petrol-electric hybrid system isn’t what you’d call particularly inspired in its delivery – but it’s perfectly adequate for the task at hand.
It’s not going to set your pulse racing; however, it is effortless at eating up motorway miles. This is a car that knows exactly what it needs to do and does it with quiet authority. In that respect, it is worthy of being one of the best BIK company cars.
Toyota C-HR PHEV
If first impressions count for anything in business, then Toyota’s new C-HR certainly makes its mark.
Built on Toyota’s accomplished TNGA platform, it steers and rides with surprising sophistication, while the new 220bhp plug-in hybrid powertrain delivers both meaningful performance and a useful 41-mile electric range – enough to secure that all-important 8% BIK tax rating.
The interior is a significant step forward in both design and quality, though practicality remains something of an afterthought. The rear seats are rather cramped, while the 310-litre boot is a bit small.
For those who prioritise style over space, the C-HR makes a compelling case as a company car.
Kia Sportage PHEV
Kia has come far, so much so that its Sportage can now be mentioned in the same breath as premium rivals without raising eyebrows. This latest iteration is particularly impressive in plug-in hybrid form, managing to combine genuine functionality with sophistication.
The powertrain pairs a turbocharged 1.6-litre petrol engine with a punchy electric motor for a combined output of 265PS – enough to deliver performance when required.
For company car drivers, the 13.8kWh battery delivers 43 miles of pure electric running – crucially giving it an 8% BIK rating.
The Sportage interior quality and technology would shame cars costing significantly more. The exterior design won’t be to all tastes.
It’s an accomplished hybrid package that demonstrates just how far the Korean brand has progressed.
Citroen C5 X Plug-in Hybrid
Trust Citroen to think outside the box. The French firm has delivered something unique in the C5 X – a car that defies easy categorisation yet makes perfect sense on the road.
Part estate, part SUV and part luxury saloon, it’s a thoroughly modern interpretation of those big Citroens of old (Citroen DS springs to mind). The interior is vast and impressively finished, though the hybrid’s boot space shrinks from 545 to 485 litres.
What really impresses is the ride quality, which comes closer than anything in recent memory to matching those legendary hydropneumatic predecessors. The 222bhp plug-in petrol hybrid is effective rather than exciting, while the 39-mile electric range results in a 12% BIK rate.
Like most cars in this group, it won’t set your pulse racing. But as a comfortable way to get to appointments or take a business trip, it’s rather refreshing.
Volkswagen Golf eHybrid & GTE
When you think Volkswagen Golf, you think Golf GTi.
A car that always commanded respect. This latest Mk8.5 Golf eHybrid version simply reinforces that reputation.
Built on the familiar MQB architecture, the Golf delivers that characteristic blend of handling and refined ride quality that’s become something of a Golf trademark. VW has addressed the Mk8’s ergonomic foibles with improved infotainment and properly illuminated climate controls.
The real talking point, however, is the plug-in hybrid’s new 25.7kWh battery.
With a genuine 88-mile electric range, it drops into the 5% BIK bracket – making this 204 PS hatchback (there’s also a more potent 272 PS GTE with 0-62 mph reached in 6.6 seconds) one of the most tax-efficient choices in its class.
The Golf remains fun to drive and the default choice for those who want their company car to whisper rather than shout about their success.
Cupra Formentor V1 eHybrid

As the Cupra brand’s first bespoke model, it manages to carve its own distinctive niche in the crowded crossover segment, combining sharp looks with genuine driver appeal.
The Formentor handles with surprising precision for something so tall, while the 241bhp plug-in hybrid powertrain (with a 1.4 T engine) delivers a decent turn of speed. The interior is spacious and well-finished, though the Volkswagen Group parts bin roots are obvious in places.
The downside is the 38-mile electric range, which feels somewhat like yesterday’s news in this rapidly evolving segment. Like the Peugeot and Citroen, that means a higher 12% BIK rate – though the keen pricing helps soften the monthly tax blow.
It’s not perfect, but as a more engaging alternative to some of those above, it makes a convincing case as a potential company vehicle.
Electric Car Finance Deals
With benefit-in-kind rates due to increase next year by 1% for all PHEV company cars, Evangate FS are working with a range of lenders to find lower electric car finance deals.
While the Government are trying to take more money from you, our team are working hard to reduce your monthly outgoings by securing more affordable rates for plug-in hybrid company cars.
If you want to be driving a new PHEV hybrid in the next few weeks, simply complete the form or call us on 0800 488 0230, and we will help you straight away.