The cheapest company cars you can get in the UK
We've tracked down the least expensive fleet cars in 2024 – starting with a model available from just £2.60 a month in BIK tax. These are the cheapest company cars you can get in the UK.....
Whether you're running a fleet or choosing a company car, you'll want to keep a close eye on long-term costs – and that means choosing models that don't attract too much benefit-in-kind (BIK) tax.
To help you out, we've compiled this list of the 15 car models available in the UK that will land you with the lowest BIK bill possible.
As our fleet car tax guide explains, HMRC rewards drivers for picking models with no exhaust emissions with a rock-bottom BIK rate of 2% – and that means an electric company car.
For that reason, you won't find any petrols, diesels or even plug-in hybrids (PHEVs) on this list. What you will find is a run-down of new models that you can drive for just a few pounds a month in BIK tax.
Read more fleet and company car advice
Our cheapest company cars list kicks off with the Citroën Ami, which is technically not a car (it’s classed as a quadricycle), but can still appear on company car lists – and will cost a 20% taxpayer just £31 a year in BIK tax.
The Ami is a car that certainly demands compromises, so fortunately there are also a number of larger and more practical options on the list – and they’re all extremely cheap to run.
For each model, we give you the What Car? road testers' rating out of five stars, the name of the least expensive version, the P11D price and the monthly BIK tax for a 20% and 40% tax payer in 2023/24. There's also a link to our full review so you can read more about the car.
If you decide none of these options is right for you, you can check any car's BIK rate in seconds using our company car tax calculator.
The UK's cheapest company cars for BIK tax
1. Citroën Ami
What Car? rating 2/5
Cheapest model Ami
P11D price £7,640
Monthly BIK tax at 20% £2.60
Monthly BIK tax at 40% £5.20
The Citroën Ami is a minuscule two-seater with a tiny power output of just 8bhp. Top speed? 28mph. It also has an official range of 46 miles, although it’ll take it a while to travel that far. Practicality isn’t all that great either, but if all you need is a small car for short trips or commutes, it could be ideal. And if you want to be a slightly slow delivery driver, there’s also a Citroën Ami Cargo version.
2. BYD Dolphin
What Car? rating 3/5
Cheapest model Active
P11D price £26,140
Monthly BIK tax at 20% £8.75
Monthly BIK tax at 40% £17.42
You certainly can’t argue with the price of the BYD Dolphin, because it’s a bit of a bargain. On top of that, it’s rapid in a straight line, has a comfortable ride in town (where it’ll spend most of its time) and it has loads of interior space. However, rivals are better to drive, and it takes a while to charge.
3. MG4 EV
What Car? rating 5/5
Cheapest model SE
P11D price £26,940
Monthly BIK tax at 20% £9
Monthly BIK tax at 40% £18
Value for money is the MG4’s trump card. It's incredibly competitively priced, and you still get plenty of standard kit, even in the entry-level model. Better still, it has a decent range, and accepts charge quickly. If you can live with the overly firm ride and the slightly too complex infotainment set-up, it makes a fine choice – especially for £9 a month in BIK tax.
4. Electric Fiat 500
What Car? rating 4/5
Cheapest model 500
P11D price £28,140
Monthly BIK tax at 20% £9.41
Monthly BIK tax at 40% £18.75
The Fiat 500 EV is a small electric car that’s designed to make you smile as you walk up to it, and look back at it as you walk away at journey’s end. However, it also comes with a "but", because while it’s fun to drive and live with, it’s also pretty cramped inside and the range isn't great.
5. Nissan Leaf
What Car? rating 3/5
Cheapest model Shiro
P11D price £28,440
Monthly BIK tax at 20% £9.50
Monthly BIK tax at 40% £19
The second-generation Leaf is a reasonably sensible choice as a company car, because it has lots of standard kit and a big boot. However, production has just ended, so you’ll need to grab a run-out model while you can.
6. Renault Zoe
What Car? rating 3/5
Cheapest model Techno
P11D price £29,940
Monthly BIK tax at 20% £10
Monthly BIK tax at 40% £20
The Zoe is a decently practical supermini, and the interior still looks good despite its age. It also has a decent range and a sizeable boot. However, it misses out on some important safety equipment, so has a low Euro NCAP rating, and CCS charging is an optional extra on some trims.
7. MG ZS EV
What Car? rating 4/5
Cheapest model SE
P11D price £30,440
Monthly BIK tax at 20% £10.17
Monthly BIK tax at 40% £20.33
The ZS is a bit of a bargain because it has a comparatively low P11D price, and exceptionally low BIK taxation rates. On top of that, it’s good to live with because it’s spacious, well kitted out and has a decent range. Only a slow recharging experience and noise when cruising count against it.
8. MG5 EV
What Car? rating 4/5
Cheapest model SE
P11D price £30,940
Monthly BIK tax at 20% £10.33
Monthly BIK tax at 40% £20.67
The MG5 EV had the field to itself for a while because it was the only electric estate car available. Others have caught up, but it remains roomy and comfortable with a decent range. However, the driving experience is rather forgettable, and it can’t be recharged as quickly as rivals. The infotainment isn’t great, either.
9. Peugeot e-208
What Car? rating 3/5
Cheapest model 100kW Active
P11D price £31,545
Monthly BIK tax at 20% £10.50
Monthly BIK tax at 40% £21
Peugeot's smallest model has some plus points, such as a classy and high-tech interior, and a decent driving experience. Things that let it down are that it’s not what you’d call roomy for rear passengers, and the driving position, with its low-slung and small steering wheel, can divide opinion.
10. Mazda MX-30 EV
What Car? rating 3/5
Cheapest model 100kW Active
P11D price £31,195
Monthly BIK tax at 20% £10.42
Monthly BIK tax at 40% £20.83
You can pretty much always rely on Mazda to do things differently, and so it does with the MX-30 EV. Rear-hinged back doors, a cork-inspired interior, and a neat ride and handling balance all make it attractive. However, the small range is a downside. There is now a range-extender version available – the Mazda MX-30 R-EV – but you’ll pay a lot more for it in BIK each month.
11. GWM Ora 3 (formerly the Funky Cat)
What Car? rating 2/5
Cheapest model First Edition 48kWh
P11D price £31,940
Monthly BIK tax at 20% £10.67
Monthly BIK tax at 40% £21.33
The Ora 03 certainly looks unusual, and the good news is that it’ll cost you less than £11 per month in company car tax. It also has a roomy rear seat. However, be aware that the boot is tiny, it doesn’t drive particularly nicely, and the infotainment is sub-par.
12. Citroën ë-C4
What Car? rating 3/5
Cheapest model 100kW You
P11D price £32,210
Monthly BIK tax at 20% £10.75
Monthly BIK tax at 40% £21.50
The ë-C4 stands out initially because it looks so funky. It’s also decently practical, has plenty of standard equipment, and rides comfortably. If there’s something that lets the side down, it’s that some of its direct rivals will go farther on a charge.
13. Vauxhall Corsa Electric
What Car? rating 3/5
Cheapest model 100kW Design
P11D price £32,390
Monthly BIK tax at 20% £10.83
Monthly BIK tax at 40% £21.58
The electrically powered Corsa is a car that does the simple things pretty well, such as being able to charge quite briskly, having a good amount of standard equipment, and being reasonably priced. However, it’s also fairly forgettable to drive, and has a disappointing Euro NCAP safety rating.
Vauxhall Corsa Electric review
14. Jeep Avenger
What Car? rating 4/5
Cheapest model 115kW Longitude
P11D price £34,745
Monthly BIK tax at 20% £11.58
Monthly BIK tax at 40% £23.17
The Jeep Avenger is an electric SUV from one of the world’s foremost off-roader makers that’s designed to be driven purely on the road. It has a great driving position, is quick to charge and has a perfectly acceptable range.
15. BYD Atto 3
What Car? rating 3/5
Cheapest model 150kW Comfort
P11D price £37,640
Monthly BIK tax at 20% £12.58
Monthly BIK tax at 40% £25.08
The BYD Atto 3 comes with loads of equipment as standard, and has been awarded a good safety rating from Euro NCAP. The boot is a decent size, too. However, the handling is pretty wallowy, and recharging can be a bit slow.
Read more: How to pay less company car tax
Read more fleet and company car advice
For all the latest reviews, advice and new car deals, sign up to the What Car? newsletter here
