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P11D and Benefits in Kind Explainer
What the P11D form is, which employer benefits are taxable, how they change your tax code, and what Class 1A National Insurance costs your employer. Includes a worked 2026/27 company car example.
What’s Included
- The common benefits in kind and how HMRC values each one.
- A worked company car example for 2026/27 showing both the employee tax and the employer Class 1A cost.
- What is usually not taxable, including trivial benefits and employer pension contributions.
- Key dates for the P11D and Class 1A payments, and what to do if a figure is wrong.
Why This Matters for 2026/27
- A benefit in kind never appears as cash on your payslip, so it is easy to miss the effect on your tax code.
- The 4% rate for a fully electric company car in 2026/27 is far lower than for a petrol car, but it rises in later years.
- Employers pay Class 1A National Insurance at 15% on the value of most benefits, which is why some firms cut or restructure them.
Frequently Asked Questions
Yes. The car is a taxable benefit worked out from its list price and a percentage linked to CO2 emissions or electric range. You pay income tax on that amount at your own rate, usually through your tax code.
No. Your employer files it and gives you a copy of the figures by 6 July. Your job is to check them and tell your employer if something is wrong.
It is a National Insurance charge paid only by employers on most taxable benefits in kind. The rate is 15% from 6 April 2025 and it is due by 22 July after the tax year ends if paid electronically.
It is free to download. It is general guidance, not tax advice. Rates and rules can change, so check GOV.UK for your own situation.