Can you recommend a company car with low BIK tax?

I’m due to get a new company car (I currently have a Volkswagen Tiguan). I want something of a similar size and spec but I’m after one with a much lower benefit in kind (BIK) value as I'm being hammered on tax at present. I do 25,000-30,000 miles a year and have both business and personal fuel covered too. Any suggestions?

Asked on 21 April 2022 by Colin Raffell

Answered by Andrew Brady

For the cheapest BIK, you'll need to be looking at electric cars. A Hyundai Ioniq 5 or Volkswagen ID.4 could be a good choice – similar in size to your Tiguan and with a very useable electric range, as well as rapid charging capabilities. It's worth considering a Tesla Model Y, too, especially as this gives you access to the brand's excellent Supercharger network. Any electric car with zero tailpipe emissions will attract 2% BIK tax from 2022 onwards.

As a compromise, you could also consider some kind of plug-in hybrid. A Volkswagen Tiguan eHybrid officially has a CO2 output of 41g/km and an electric range of up to 30 miles, meaning you'll pay 14% BIK. You'll need to charge it regularly to get the best from it in terms of fuel economy, but it's a very impressive SUV.

Tags: company cars benefit in kind tax bik tax

Similar questions

I want a small/medium SUV as a company car but I would like the BIK to be £4000 maximum per year - what do you suggest?

I want a small to medium SUV as a company car but I would like the benefit in kind to be no more than £4000 per year. My mileage is approximately 15,000 per year and I need to fit a buggy in the boot....

Can you recommend a 4x4 company car with good load carrying capacity?

I am looking for a new company vehicle. I work in outdoor events - in the summer I am on green field sites across the country and in the winter I’m doing the meeting rounds with current and prospective...

Could you suggest an economical, reliable, 4WD car - which also has low BIK and low CO2 emissions?

I'm an employee who does about 18,000 - 20,000 miles a year. I'm looking for an economical, low BIK, low CO2, reliable, 4WD car that can also tow. It needs good boot space too.

Related models

Volkswagen Tiguan (2016 on)

High-quality interior offers plenty of practicality, plus a strong array of standard equipment. Refined driving experience fits with Volkswagen’s upmarket image.

Volkswagen ID.4 (2021 on)

Practical, family-friendly electric SUV. Impressive range (especially with the bigger battery). More conservative than some outlandish rivals.

Hyundai Ioniq 5 (2021 on)

Range of up to 300 miles. Rapid charging as standard, able to add 62 miles of driving range in five minutes. Comfortable and spacious interior. Impressive technology.