Best Company Car EVs Under £40,000 in the UK

The £40,000 threshold matters for company car drivers because of Vehicle Excise Duty (VED). EVs registered from 1 April 2026 are exempt from the expensive car supplement (£620 per year for vehicles with a list price over £40,000) if their list price is £50,000 or below. However, for company cars, it is the P11D value that drives your BIK tax bill, and every electric car shares the same 4% BIK rate in 2026/27 regardless of price. Keeping the P11D below £40,000 simply means a lower absolute BIK charge, which directly reduces your monthly take-home cost. The models below offer strong range, real-world usability, and BIK costs that are genuinely low rather than just low by comparison with petrol.

BIK cost comparison: EVs under £40,000

Model	P11D from	WLTP range	BIK/year (20%)	BIK/year (40%)	BIK/month (40%)
MG4 SE Standard Range	£26,995	218 miles	£216	£432	£36
MG4 SE Long Range	£29,995	323 miles	£240	£480	£40
Vauxhall Corsa Electric	£28,000	222 miles	£224	£448	£37
Nissan Leaf (40kWh)	£28,995	168 miles	£232	£464	£39
Volkswagen ID.3 (58kWh)	£30,995	260 miles	£248	£496	£41
Renault Megane E-Tech (60kWh)	£33,495	280 miles	£268	£536	£45
MINI Electric Aceman	£29,000	189 miles	£232	£464	£39
Kia Niro EV	£35,495	285 miles	£284	£568	£47
Hyundai Kona Electric	£37,000	319 miles	£296	£592	£49
Peugeot e-308	£35,000	248 miles	£280	£560	£47

1. MG4 SE Long Range: best buy under £30,000

Nothing at this price beats the MG4 SE Long Range on the core metrics of range, BIK cost and equipment level. The 77kWh battery delivers 323 miles WLTP, and the SE trim includes heated front seats, a 10.25-inch touchscreen, and 19-inch alloy wheels as standard. The Electric Car Grant applies to this model, reducing the lease cost further.

The interior is competent rather than premium, and the MG brand carries less prestige than European alternatives. For company car drivers focused on value and practicality, this is the obvious starting point.

P11D from £29,995 | Monthly BIK (40%): £40

2. Vauxhall Corsa Electric: best city company car

The Corsa Electric suits urban and suburban company car driving well. A 222-mile WLTP range covers most daily commutes and local business routes with ease when charged overnight. The body style is familiar and professional, the cabin is practical for a small car, and Vauxhall’s dealer network provides easy service access nationwide.

The Corsa Electric qualifies for the Electric Car Grant and has a P11D starting around £28,000, making the monthly BIK charge among the lowest in class.

P11D from ~£28,000 | Monthly BIK (40%): ~£37

3. Volkswagen ID.3: best balance of range and refinement

The ID.3 at the 58kWh entry level offers 260 miles WLTP and VW’s characteristic cabin quality. Ride comfort is notably better than most rivals at this price, making long days in the driving seat considerably more comfortable. The ID.3 is close enough to a conventional hatchback in feel that switching from a petrol Golf or similar requires minimal adjustment.

P11D values for the Pure Essential trim start below £32,000. All ID.3 versions bar the range-topping GTX sit under £40,000.

P11D from £30,995 | Monthly BIK (40%): £41

4. Renault Megane E-Tech: best interior under £35k

The Megane E-Tech Electric offers the most genuinely upscale cabin of any car in this price band. Soft-touch materials, ambient lighting, and an impressive dual-screen infotainment setup make it feel noticeably more expensive than its P11D suggests. The 60kWh battery gives 280 miles WLTP, and 130kW DC charging adds significant range in around 30 minutes.

For business drivers who want to impress clients or simply want to spend time in a well-appointed cabin, the Megane E-Tech stands out.

P11D from £33,495 | Monthly BIK (40%): £45

5. Kia Niro EV: best family-sized company car under £36k

The Niro EV offers a raised crossover body style that many drivers prefer to a hatchback, with a 285-mile WLTP range and a practical 475-litre boot. At a P11D of around £35,495 it sits below £40,000 comfortably, and Kia’s seven-year warranty is a meaningful benefit for company car users who care about reliability.

Fast charging at up to 100kW DC is adequate rather than class-leading, but for most commuting patterns it does the job.

P11D from £35,495 | Monthly BIK (40%): £47

6. Hyundai Kona Electric: best range-to-price ratio near the £40k mark

The Kona Electric refreshed for 2024/25 offers up to 319 miles WLTP from a 65.4kWh battery, and a P11D starting at around £37,000. For company car drivers who want genuine long-range flexibility without crossing the £40,000 threshold, the Kona Electric is the strongest option at this price point. The interior is well-equipped and the driving experience is solid if unremarkable.

P11D from ~£37,000 | Monthly BIK (40%): £49

7. Peugeot e-308: best European styling under £36k

The e-308 brings the style and driving finesse of Peugeot’s latest family hatchback in an electric version, with a 248-mile WLTP range and a P11D around £35,000. The interior is distinctive, with Peugeot’s i-Cockpit layout (small wheel, high instrument cluster) dividing opinion but offering something different from the more anonymous competition.

P11D from ~£35,000 | Monthly BIK (40%): £47

The VED expensive car supplement: does it apply to company cars?

From April 2025, electric cars registered after 1 April 2017 with a list price over £40,000 pay the expensive car supplement of £620 per year for years two to six of registration. This applies to the first registered keeper and affects company car arrangements where the employer has bought or the leasing company passes the VED cost through.

For EVs registered after 1 April 2026, the supplement threshold rises to £50,000. This means many previously affected models (including some Tesla Model 3 and BMW iX1 variants) are no longer subject to the supplement if registered from this date.

The supplement does not affect your BIK calculation, only the annual road tax cost. For leased company cars, VED is typically included in the monthly rental and does not appear separately on your payslip.

What should you do next?

For a full view of BIK tax, how it is calculated, and how salary sacrifice reduces your effective cost further, see our company cars and fleet guide. For the best models across the full price range including salary sacrifice options, visit our best electric cars for salary sacrifice page.