HJ personally refuses to recommend ANY DSG gerbox'ed VW, Audi, Skoda, Seat, etc, due to the sheer number of problems that have occurred over the years.

I know we trot this out as a standard response, but just what are the numbers? Most company cars are not purchased and any faults with the DSG would be sorted under warranty. And in any case, if the DSGs were so unreliable, you can be pretty sure they would have been taken off user-chooser lists years ago. Fleet management and leasing companies tend to know what's happening in the market.

In the OP's position, I would try and get a drive in both and then decide.

The Passat is a big car though, so I wouldn't expect the 1.6 to be a ball of fire, but the DSG would make the power delivery smooth.

The manual 2.0 would certainly be quicker, but the power delivery may be more peaky.

Much as i wouldn't entertain a DSG or similar box out of warranty, on a company car does it matter, if the markett suddenly woke up to their possible long term durabilities and it turned out in three years time you can't give them away its still not the company car driver's pigeon.

Can't comment on the engine choice, lots of other large cars now feature small engine capacities we'd have have recoiled from years ago and seem to be doing fine, as said test them both out.