If you offer your employees any kind of benefits as part of their overall renumeration package, as a UK business, you must record all benefits and submit to HMRC to determine the Benefit-in-Kind (BiK) tax due.
Currently you have the option to submit P11D forms online at the end of the tax year or you can choose to report taxable benefits via the Pay as You Earn (PAYE) scheme. The latter will become the mandatory way for reporting benefits from 6 April 2026.
In this guide you’ll learn about what P11D is, the process options and frequently asked questions.
Are you looking to reduce the hassle and save resource time by reducing the P11D reporting that’s required and still provide your employees with a great benefit? Get in touch to see how we could help.
What is a P11D Form?
P11D benefits include everything from vouchers and company credit cards, accommodation to mileage allowance payments not taxed at source, interest free loans to private medical insurance, and of course, any type of car benefit.
UK business that provides any of these benefits to their employees is required to file a P11D form in line with the P11D submission deadline, which is always 6 July for the previous tax year.
On the P11D form itself, for company cars, you’ll be asked to complete the following details for all employees: the make and model of the car, the registration date, the CO2 emissions, the engine size, the fuel type, the list price of the car and any accessories added.
You’ll also need to state the amount of private fuel benefit, and include any contributions made by your employees for private use, accessories or fuel.
Let’s take a closer look at different car benefits and what P11D reporting is required for each. If you choose to offer Salary Sacrifice Cars or Business Car Leasing, then you’ll need to complete a P11D form for every employee who has a company car or who opts into an employee car benefit.
However, if you choose an Employee Car Ownership Scheme (ECOS), P11D reporting is significantly reduced or in some cases can be removed.
P11D Form vs P11D Value
When you search for P11D, you might also come across P11D value as well as the form, so what’s the difference?
The P11D meaning for the form is simply the way to record and report all benefits you provide to your employees to HMRC to determine the BiK tax due.
The P11D value meaning refers specifically to the P11D car value, and this is required to calculate the amount of BiK tax your employees need to pay for their car benefit. The tax they pay will differ dependent on the car they chosen or are given from the business, and their income tax rate.
The P11D value is the list price of the car, inclusive of VAT, delivery charges and any extras, but exclusive of the first registration fee and the first year of road fund licence. The sum to work out how much BiK tax is due is:
P11D value x BiK percentage rate x income tax rate of the employee.
Click to find the appropriate BiK percentages for company car benefits for petrol powered and hybrid powered cars for the tax year 2024 to 2025.
P11D Filing Process
If you don’t pay expenses and benefits through payroll, allowing your employees to pay tax on them throughout the year, then you must submit a P11D form to HMRC online.
Complete a P11D for each employee. If you have less than 500 employees in your business, fill in and submit the forms through HMRC’s PAYE Online service.
If you have more than 500 employees, complete the forms through your payroll software.
In addition, you must also submit an online form to HMRC at the end of the tax year for any Class 1A National Insurance you owe. This is called a P11D(b).
If you make any errors with your forms, you should report them immediately to HMRC to avoid any penalties.
The deadline for completing the P11D forms is 6 July after the end of the tax year you’re reporting on. For P11D(b), which details the business’ Class 1A National Insurance Contributions, the deadline is 22 July after the end of the tax year.
If your P11D(b) is late, you’ll get a penalty of £100 per 50 employees for each month or part month over the deadline. You’ll also be charged penalties and interest if you’re late making the payment to HMRC.
You also have the option to report taxable benefits via the Pay as You Earn (PAYE) scheme, which removes the need to file P11D forms. You need to register online before the start of the tax year you want to payroll for. Next you add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll.
You must keep your employees informed if you change the way you report taxable benefits to HMRC, and even if you use the PAYE scheme for your employees, you still need to complete the P11D(b) for the business.
In addition to P11D reporting, you also need to complete a P46(car) form every time an employee goes into or changes their company car. A lot of the details needed are the same as the P11D form and you need to submit this to HMRC through payroll software. The importance of the P46(car) form is to let HMRC know that the employee is driving a company car so that they can update the employee’s tax code.
How to Calculate P11D Value
When it comes to calculating the P11D value of a car, you’ll need to use cap hpi data or similar to find the list price of the car, inclusive of VAT, delivery charges and any extras, but exclusive of the first registration fee and the first year of road fund licence.
Once you have the P11D value, you can calculate the amount of BiK tax your employees need to pay for their car benefit. It will differ dependent on the car they chosen or are given from the business, and their income tax rate. The sum to work out how much BiK tax is due is:
P11D value x BiK percentage rate x income tax rate of the employee.
Common P11D Mistakes
Errors in P11D filings can lead to delays and potential issues. Common issues include the form being submitted more than once by mistake, using the wrong form for the reporting tax year or leaving sections such as cash equivalent or fuel benefit blank, or incorrectly reporting how the vehicle use is split between business and private.
Ensure you complete all areas of the form, your employee reference numbers are critical for HMRC to identify each individual, so this information needs to be accurate. The correct P11D value of the car is another critical data required, as is completing the total cash equivalent of cars and car fuel provided.
You can contact the Employer Helpline if you have any problems completing P11D or P11D(b).
Alternatively, you can find the full range of HMRC booklets, forms and guidance:
– Business tax PAYE
– HMRC Employer Forms Helpline
P11D FAQs
Does the P11D value of a car decrease?
No, the P11D value of a car doesn’t decrease as the vehicle gets older, it remains the same.
Can I amend a submitted P11D?
Yes, you can submit a correction form to make an amend or fix an error. Click for links to the correction forms.
When is P11D due?
The P11D deadline is 6 July after the tax year you’re reporting on.
When are P11Ds issued?
P11D should be available to your employees at the end of the tax year, however, since the business has until the deadline of 6 July, it could be closer to the latter date before you issue them.
Make P11D Reporting Easier with Car Benefit Solutions
We have an alternative way to provide a car benefit that reduces or removes P11D reporting. An Employee Car Ownership Scheme (ECOS) transfers the ownership of the car to your employees by selling the vehicle to them using a Credit Sale Agreement (CSA). The car is then no longer classed as a company car, so BiK tax isn’t payable by your employees, and you don’t owe Class 1A National Insurance Contributions (NICs) on the benefit either.
For more information about ECOS and how it works, or get in touch with us today.