What is a P11D value and why is it important?

Everything you need to know about a P11D value, and why it’s important.

The P11D value of your car is an important figure to know. That's because it's the figure HMRC uses to work out your company car tax.

A car's P11D value is often confused with the commonly known P11D form. Although they share a name, they're entirely separate: the form is used by employers to report expenses or benefits provided to employees at the end of each tax year.

Here we answer common questions surrounding car P11D values and what it means for your tax bills.

How to calculate P11D

The P11D value is the list price of a vehicle plus delivery charges at the time of registration. This figure excludes any discounts and doesn't consider first registration fees or annual road tax.

P11D does include factory options and chargeable trims or paints.

All P11D values are inclusive of VAT.

Before vehicle registration, P11D values will be estimates only. P11D values can change if manufacturers adjust their list prices, even where this doesn't affect what you're paying for the car. 

The P11D quoted online and at time of order is an estimate only and therefore not contractual.

What is the P11D value of my car?

To calculate the P11D value of your car, you'll need to add the list price and applicable delivery charges at the time of registration.

If you aren't aware of these figures for your car, you'll need to request them from the supplier of your vehicle.

How to find the list price of my vehicle for P11D

Here at Carparison, you'll see the estimated P11D value of each of our cars in the Deal Overview section of each lease deal. It'll also be listed on your quote and order forms.

If you didn't lease your car through us, the supplying dealership should have the figure to hand for you.

How does P11D differ to the on the road price?

A P11D value differs from a car's on the road price (OTR). An OTR includes all the costs required to get the car on the road.

This includes the list price, registration and delivery fees, first year road tax and things like number plate printing.

A vehicle's OTR will therefore be greater than its P11D value.

Why is P11D important?

If you're a company car driver, or are hoping to be one, the P11D value of your car will contribute to working out the Company Car Tax (also known as Benefit in Kind or BiK) you'll owe. 

The P11D value is multiplied by the tax banding of the company car to provide a BiK amount. We’ll talk about this more shortly.

P11D and company car tax 

The most common use of a car's P11D value is to calculate the annual company car tax, or Benefit in Kind (BiK), owed on company cars.

To calculate the BiK owed, you multiply the P11D value by the tax band percentage applicable to the vehicle.

Tax banding percentages are based on vehicle emissions, with zero emission models owing the least.

The calculation: P11D value × tax band percentage = annual BiK owed

Please note all figures are correct at time of publishing and are subject to change.

Understanding your car's P11D value doesn't have to be complicated. It's simply the figure that determines how much company car tax you'll pay.

Whether you're choosing your next company car or trying to work out your tax bill, knowing the P11D value puts you in control of the costs.

If you're looking at Business Contract Hire (BCH) options, our team can help you understand exactly what your P11D value means for your monthly tax bill – we're here to put the ease in your next car lease.