Benefit-in-kind (BIK) tax is one of the biggest factors to take into account when trying to decide on your new set of business wheels, and with the bands tightening each year, monthly costs are only getting more expensive.
Combating those rising costs shouldn’t have to mean choosing an undesirable or under-powered car though, and in this article we’ve managed to find five ideal company cars of various shapes and sizes that fall below £50 a month* in tax for the 2016/17 tax year.
To calculate your monthly tax costs, don’t forget to use our company car tax calculator here.
Audi A1 1-litre TFSI SE
The smallest member of the Audi family received a mid-life facelift in 2015 and among the big changes was the introduction of a 1-litre three-cylinder petrol engine that offers strong running cost figures alongside characterful handling.
In base spec, standard equipment is on the stingy side with cars equipped with air-con, 15-inch alloys and DAB radio. We’d suggest moving up to Sport trim, which adds just a couple of pounds to the monthly bill and gains you essential company car kit like cruise control and Bluetooth.
Figures at a glance
Trim and engine choice: 1-litre TFSI Sport manual
P11D price: £14,475
MPG (official combined): 67.3mpg
Power: 94bhp
CO2 emissions: 98g/km
2016/17 BIK Tax band: 16
Monthly BIK tax costs*: £43.87
Read our review of the Audi A1 hatchback here
Citroen C4 Cactus
The C4 Cactus has been a big hit for the French car maker and it’s not just those retro looks which has turned heads; low pricing, practical features and impressive running costs make it a great all-round choice.
Sticking within budget, we’d pick mid-range Feel trim, which bags you a seven-inch touchscreen media system, cruise control, air-con, DAB radio, Bluetooth, 16-inch alloys and a front armrest as standard.
Arguably the most versatile engine of the range is the PureTech 110. This 1.2-litre petrol unit proves powerful enough to make decent progress away from the lights, covering 0-62mph in 9.3 seconds, while offering a combined fuel economy of 65.7mpg and emitting just 100g/km of CO2.
Figures at a glance
Trim and engine choice: PureTech 110 Feel
P11D price: £16,100
MPG (official combined): 65.7mpg
Power: 108bhp
CO2 emissions: 100g/km
2016/17 BIK Tax band: 17
Monthly BIK tax costs*: £45.62
Read our full review of the Citroen C4 Cactus here
Mitsubishi Outlander PHEV
Mitsubishi’s plug-in version of the Outlander emits just 42g/km of CO2, despite its off-road capabilities, and it’s one of the cheapest cars for BIK tax in our list here.
Thanks to its two batteries alongside the petrol engine, the Outlander PHEV can travel up to 32 miles on electric power alone.
We’d opt for mid-range GX3 trim as it comes generously equipped for the price. Standard kit includes 18-inch alloys, keyless entry and start, parking sensors, cruise control, Bluetooth and LED daytime running lights.
Figures at a glance
Trim and engine choice: PHEV GX3
P11D price: £34,194
MPG (official combined): 156mpg – 32 miles electric range
Power: 200bhp
CO2 emissions: 42g/km
2016/17 BIK Tax band: 7
Monthly BIK tax costs*: £39.89
Click here to read our full review of the Mitsubishi Outlander
Volkswagen Golf GTE
The Volkswagen Golf has long been one of the most popular choices for company car drivers thanks to its impressive versatility on paper and out on the road. In 2015 a plug-in version joined the line-up and combined sporty characteristics from GTI and GTD performance models with the added bonus of low running costs.
Available as a five-door only, the GTE uses a 1.4-litre petrol engine alongside an electric motor. It can travel up to 31 miles on electric power alone and completes the 0-62mph benchmark sprint in just 7.6 seconds.
Standard kit is generous too, with 18-inch alloy wheels, DAB radio, sat-nav and Bluetooth all included.
Figures at a glance
Trim and engine choice: 1.4 TSI GTE 5d DSG
P11D price: £33,700
MPG (official combined): 166mpg – 31 miles of electric range
Power: 203bhp
CO2 emissions: 39g/km
2016/17 BIK Tax band: 7
Monthly BIK tax costs*: £39.32
Click here for the full review of the Volkswagen Golf
BMW 330e
The words BMW 3 Series and company car go together like bread and butter. It’s a car that needs little introduction and has won countless awards over the years.
But now you really can have your cake and eat it with the 330e thanks to a new hybrid powertrain which goes on sale this month and offers monthly tax bills under £40.
The quickest in our list here, 0-62mph can be achieved in just 6.1 seconds while BMW claims a range of 25 miles on electric power.
There are four trims to choose from, all of which will offer tax bills under the £50 mark for this tax year. Standard equipment across the range is generous too with all cars coming equipped with sat-nav, dual-zone climate control, parking sensors, 16-inch alloys, adaptive cruise control and DAB radio.
Figures at a glance
Trim and engine choice: 330e SE
P11D price: £33,880
MPG (official combined): 148.7mpg – 25 miles of electric range
Power: 241bhp
CO2 emissions: 44g/km
2016/17 BIK Tax band: 7
Monthly BIK tax costs*: £39.43
Click here for the full review of the BMW 3 Series
* Monthly tax costs are based on a 20 percent tax payer for the 2016/17 tax year and assume no optional extras.
Still not sure which company car to pick? These articles may help:
Seven low-cost petrol company cars