P11D & Benefit in Kind Calculator
A P11D reports the cash value of benefits in kind (BIKs) an employee or director receives on top of salary: a company car, employer-paid fuel, a van with private use, a cheap loan, private medical insurance. The employee pays income tax on that value at their marginal rate, and the employer pays Class 1A National Insurance at 15%. Enter your benefits below to see the 2026/27 taxable value and both tax bills.
P11D & Benefit in Kind Calculator
A P11D reports the cash value of benefits in kind (BIKs) an employee or director receives on top of salary: a company car, employer-paid fuel, a van with private use, a cheap loan, private medical insurance. The employee pays income tax on that value at their marginal rate, and the employer pays Class 1A National Insurance at 15%. Enter your benefits below to see the 2026/27 taxable value and both tax bills.
The manufacturer's list price when new, including VAT, delivery and factory options, not what was actually paid. Enter 0 if there is no company car.
0 for a pure electric car. Shown on the V5C or the manufacturer's spec sheet.
Only matters for plug-in hybrids emitting 1 to 50 g/km. Longer electric range means a lower BIK percentage.
Money you personally put towards the cost of the car reduces the list price for the benefit calculation, capped at £5,000.
Interest-free or cheap loans, including an overdrawn director's loan account. No benefit arises if the balance stays at £10,000 or below all year.
The premium your employer pays for your cover. The taxable value is simply the cost to the employer.
Benefits are reported on a P11D by 6 July after the tax year, or taxed in real time through payroll if the employer has registered to payroll benefits. Payrolling most benefits becomes mandatory from April 2027, so employers still on P11Ds should plan the switch now.
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How benefit in kind tax is calculated in 2026/27
Each benefit has its own valuation rule. A company car is the list price multiplied by an appropriate percentage set by its CO2 emissions (and electric range for plug-in hybrids), from 4% for a pure electric car up to a 37% cap. Car fuel uses the same percentage applied to a fixed multiplier (£29,200). Vans use flat rates: £4,170 for the van and £798 for private fuel, with electric vans at nil. A loan over £10,000 is taxed on the interest saved against HMRC's official rate (3.75%), and private medical insurance is taxed on what it costs the employer. The employee pays income tax on the total at their marginal rate; the employer pays Class 1A NIC at 15% on the same total.
Worked example 1: an employee has a £48,000 electric company car (0 g/km). The appropriate percentage is 4%, so the taxable benefit is £1,920. A higher-rate taxpayer pays 40% of that, £768 a year (£64 a month), and the employer pays Class 1A of £288. This is why salary-sacrifice electric cars remain one of the most tax-efficient benefits available.
Worked example 2: a £32,000 petrol car emitting 128 g/km sits in the 32% band, a taxable benefit of £10,240. If the employer also pays for private fuel, the fuel benefit is 32% of £29,200, another £9,344, taking total taxable benefits to £19,584. A higher-rate taxpayer pays £7,834 a year in tax and the employer pays £2,938 in Class 1A. Unless private mileage is very high, paying for your own fuel and claiming business mileage back is usually cheaper than the fuel benefit.
Frequently asked questions
- What is a P11D?
- A P11D is the form employers use to report taxable benefits in kind, such as company cars, private medical insurance and cheap loans, to HMRC for each employee or director who received them. It must be filed by 6 July following the end of the tax year, and the employee's tax code is then adjusted to collect the tax due. If the employer payrolls benefits instead, no P11D is needed for those benefits.
- What is a P11D(b)?
- The P11D(b) is the employer's summary return. It declares the total value of benefits provided across all employees and calculates the employer's Class 1A National Insurance, charged at 15% for 2026/27. It is due by 6 July, with the Class 1A payment due by 22 July (19 July if paying by post). A P11D(b) is still required even when benefits are payrolled.
- What does benefit in kind (BIK) mean?
- A benefit in kind is anything of value an employee receives from their job other than cash pay: a company car, employer-paid fuel, private medical cover, an interest-free loan, gym membership. Because it is a reward for work, it is taxed like income. Each benefit has a valuation rule that converts it into a cash-equivalent figure, which is then taxed at the employee's marginal rate.
- How is company car tax calculated?
- Multiply the car's list price when new (including VAT and options) by an appropriate percentage based on its CO2 emissions. For 2026/27 a pure electric car is 4%, plug-in hybrids emitting 1 to 50 g/km range from 4% to 16% depending on electric-only range, and petrol cars run from 17% up to a cap of 37%. Non-RDE2 diesels add a 4% supplement. You then pay income tax on that figure at your marginal rate.
- Do I pay tax on a company van?
- Only if you use it privately beyond ordinary commuting and insignificant private use. If you do, a flat-rate benefit of £4,170 applies regardless of the van's value, plus £798 if the employer also pays for private fuel. Fully electric vans have a nil benefit, so an electric company van with unrestricted private use currently costs the employee nothing in tax.
- When does a director's loan become a taxable benefit?
- When the total loans outstanding exceed £10,000 at any point in the tax year. Once over that threshold, the whole balance (not just the excess) is treated as a beneficial loan, and the taxable benefit is the interest you saved compared with HMRC's official rate, less any interest you actually paid. Overdrawn director's loan accounts are the most common way this catches owner-managers out.
- What is payrolling benefits, and when does it become mandatory?
- Payrolling means taxing benefits in real time through the payroll each month instead of reporting them on a P11D after year end, so employees pay the right tax as they go rather than through tax-code adjustments. HMRC has confirmed that payrolling most benefits in kind becomes mandatory from April 2027, so 2026/27 is the last full year employers can rely on the P11D route by default.
Numbers are one thing. Getting the timing right is another.
Every figure here is modelled on standard 2026/27 thresholds. Your actual position depends on prior-year usage, pension carry-forward, other income sources, and how your decisions interact with each other. We build those models as part of our advisory work.
Talk to us about payrolling benefits