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P11D Value Explained

  • What P11D means 
  • How your P11D value is calculated 
  • Using P11D value to calculate BIK tax 

The P11D value of your car is used to calculate the amount of company car tax you pay.

P11D is actually the name of a form filed by employers and sent to the tax office with which their Pay As You Earn scheme is registered. 

The P11D value of your car comprises the list price, including VAT, plus any delivery charges, but does not include the car's first registration fee or its annual road tax. 

Some manufacturers' pricing does not contain a specific delivery charge, but it won't make a difference to your tax bill compared with equivalent models from other brands because they would be benchmarked at the on-the-road price. 

For example, car A is priced at £15,480 on the road. It is made up of £14,655 list price (basic price plus VAT), £645 delivery fees, £125 annual Vehicle Excise Duty and £55 first registration fee. 

Its P11D value would be £15,300 - list price plus delivery fees, but without road tax and first registration fee. 

Meanwhile, car B is also priced at £15,480 on the road. Its manufacturer does not list a separate delivery charge, but the list price is stated as £15,275. It is subject to VED at £150 a year, and a first registration fee of £55. Therefore the P11D value is £15,275. 

Choosing factory-fit options in your company car will have a direct impact on its P11D value, with the full value of the option contributing to the total. 

To calculate annual company car tax the P11D value is multiplied by the percentage rate of income tax you pay (20 per cent or 40 per cent) and by the benefit-in-kind tax band dictated by the car's carbon dioxide emissions. 

If you require any more information please visit the following links or contact us to discuss more.

HMRC BIK Calculator 

.Gov Information on company car tax

Contact us

Email : sales@carmyke.co.uk

Telephone : 01323 834560

Company Address :
Carmyke Leasing Ltd
Higham Lodge
Gardner Street
Herstmonceux
East Sussex
BN27 4SX

Carmyke Leasing Ltd are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 667470

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Registered Office : Higham Lodge, Higham Farm, Gardner Street, Herstmonceux, BN27 4SX

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