Benefits in kind
What is on my P11D, and what does it do to my tax?
A P11D is the form your employer sends HMRC, with a copy to you by 6 July, listing everything you got on top of pay that counts as taxable: a company car, private medical cover, a cheap loan, a gym membership. Each has a cash equivalent. HMRC takes the total off your tax-free allowances, so you pay the tax through a smaller tax code, or through payroll if your employer has switched to that. Type in the figures and we explain each one.
The basics
Who sends what, and when
Your employer works out each benefit’s cash equivalent, reports it to HMRC and gives you the P11D by 6 July after the tax year. You do not send it anywhere, but keep it: it is the evidence behind the figures in your code.
How the tax is collected
HMRC deducts the total from your allowances in the tax code for the following year, and often estimates it into the current year’s code too. Bigger benefits, smaller code, more tax off each payday. A benefit that started mid-year is usually caught up as an underpayment.
Class 1A is your employer’s bill
The P11D(b) and the Class 1A National Insurance it triggers are paid by the employer, at 15% of the benefits. Nothing on your P11D is a National Insurance cost for you.
Business expenses should not be here
Expenses reimbursed for genuine business costs are exempt and are not reported. If travel or subsistence appears in section N and it was all business, ask your employer to correct it.
Decode your P11D
Enter the cash equivalent from each section that has a figure and leave the rest blank. For a company car, the calculator on the company car page rebuilds the figure from the car’s details.
Figures from the P11D
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Cars, property or goods given to you outright.
Your own bills settled by the employer.
Personal spending on a company card, or vouchers.
A home provided by the employer.
Mileage paid above HMRC’s approved rates.
The cash equivalent of the car itself.
The cash equivalent of private fuel.
Private use of a company van.
Private fuel in a van.
The cash equivalent, not the loan itself.
Premiums or treatment paid by the employer.
The part above the exempt amount.
Services provided for your private benefit.
Employer-owned items you use privately.
Anything else, named on the form.
Reimbursed expenses that were not business costs.
Payrolling: the P11D is disappearing
More employers now tax benefits through payroll instead of reporting them on a P11D. It becomes mandatory in two steps: company cars, car fuel, vans, van fuel and medical benefits from April 2027, and most other benefits from April 2028.
What changes on your payslip
The cash equivalent is spread across the year and added to your taxable pay each payday, so the tax comes off in real time. Your payslip shows a benefit line; your take-home pay is not reduced by the benefit itself, only by the tax on it.
What changes in your tax code
Payrolled benefits must come out of your tax code. If a benefit is both payrolled and still in your code, you are paying twice: check the P2 and tell HMRC.
What stays on a P11D
Living accommodation and beneficial loans are outside mandatory payrolling, so unless your employer chooses to payroll them they carry on through the P11D and the tax code. Your employer still reports its Class 1A National Insurance either way.