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. What would you recommend ?

Asked on 29 January 2017 by Sam jordan

Answered by Simon Harris
Difficult to tailor the recommendation perfectly, perhaps, as we don't know whether you're a basic or higher rate taxpayer. Or whether your company gives you free fuel for private mileage, which would increase the tax burden. But we would recommend a number of medium SUV choices, including diesel versions of the new SEAT Ateca and Peugeot 3008.

The SEAT is related to the Volkswagen Tiguan, but has a far more competitive price giving it slightly lower tax liability. The 3008 is the most impressive Peugeot for years, and if you don't need four-wheel drive, this well-equipped SUV should do the job. 1.6-litre diesels should perform well enough, but if you can afford £4000 a year in BIK tax, the more powerful and higher specification 2.0-litre diesels should also be comfortably within your budget.

If you really want to save on BIK tax, you could choose the Mitsubishi Outlander PHEV. The top-spec Outlander would have lower BIK tax than diesel rivals, but also bear in mind that BIK tax for plug-in cars will increase more rapidly than petrol or diesel rivals over the next few years. Your annual bill will increase at a steeper rate than for a petrol or diesel car, although will remain lower than them. Also, you would only get the fuel economy benefit of the PHEV if you cover relatively short journeys and ensure the battery is charged frequently as it only has a realistic EV range of around 20 miles or so.
Similar questions
What are the best new electric or hybrid cars, preferably 4WD SUVs?
We own and run a 2013 Kia Sportage II 1.7, but because of changing lifestyles it rarely gets to stretch its legs. We love the high driving position and our travel is now a 24 mile daily round trip for...
I have a BMW 520d saloon as my company car. I may need to change later in the year for an estate and the hybrids look very attractive, certainly from a tax point of view. The BMW is about £240 per month...
Related models
Cheap to run if you can charge at home and don't do many miles. Masses of space. Significantly improved for 2019.
Comfortable, spacious and supremely practical. Refined diesel engines. Plenty of modern technology.
Very comfortable and refined with impressive ride quality. Lots of room for those in the back along with a large boot. Good value for money. 1.6 TDI should prove very economical. Five star Euro NCAP rating.
Well-finished, stylish cabin. Well-equipped as standard. Full-colour digital instruments on all models.


Value my car