P11D Benefits Calculator UK 2025/26

Quick answer: UK P11D Benefits-in-Kind 2025/26: EV company car only 3% BIK, petrol up to 37%. Private medical, fuel, accommodation taxed at marginal rate. Employer pays 13.8% Class 1A NI on total BIK.

Reviewed by Mustafa Bilgic · UK Calculator Editor · Updated May 2026

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P11D is the form employers submit annually reporting Benefits in Kind (BIK) — non-cash benefits that are taxable. For employees: BIK adds to taxable income. For employers: 13.8% Class 1A NI applies. This calculator shows the tax cost of common P11D benefits for 2025/26.

Annual gross salary (£)

How p11d benefits in kind calculator works in 2025/26

Common P11D benefits and 2025/26 BIK rates:

Benefit	BIK calculation
Electric car	3% × P11D value (rises to 4% 2026/27, 5% 2027/28)
Hybrid (≥130mi range, ≤50g CO2)	5% × P11D value
Petrol/diesel car	15-37% × P11D value (CO2-based)
Diesel non-RDE2	+4% (max 37%)
Fuel benefit (private mileage)	£28,200 multiplier × car BIK% (2025/26)
Van	£3,960 standard + £757 fuel benefit (2025/26)
Private medical insurance	Premium amount = full BIK
Living accommodation	Annual value + (cost - £75k) × ORI
Mileage above AMAP	Excess over 45p/25p taxable
Loans > £10,000	2.25% Official Rate of Interest minus actual
Childcare voucher (closed)	£55/wk basic-rate cap (legacy)

For employee (40% taxpayer): BIK × marginal rate = annual tax cost. For employer: BIK × 13.8% Class 1A NI annually.

Worked example: £42k P11D Tesla Model 3 EV (3% BIK)

BIK = £1,260 (3% × £42k). Higher-rate employee tax: £1,260 × 40% = £504 income tax/year. Employer 13.8% NI: £1,260 × 13.8% = £174/year. Total tax cost for £600/month lease = £678 vs ~£3,000 personal lease net cost.

Gross: £1,260 → Take-home: £504.00/year (£42.00/month)

Worked example: £35k P11D petrol BMW (32% BIK)

BIK = £11,200 (32% × £35k). Higher-rate tax: £4,480/year. Plus £28,200 × 32% = £9,024 fuel benefit if employer pays private fuel = additional £3,610 tax. Total £8,090/year tax cost for higher-rate employee.

Gross: £11,200 → Take-home: £4,480.00/year (£373.33/month)

Worked example: £1,200 private medical for higher-rate employee

BIK = £1,200. Tax £480 (40%). Employer NI £166. Total cost employee + employer = £1,846 for £1,200 medical insurance — but cheaper than personally buying same cover (~£1,500-1,800 with no NI saving).

Gross: £1,200 → Take-home: £480.00/year (£40.00/month)

Frequently asked questions

What is P11D?

HMRC form employers submit annually (deadline 6 July following tax year) reporting non-cash Benefits in Kind given to employees. Each employee gets a copy. BIK values flow into employee tax codes (often K-prefix) for PAYE adjustment.

What's the EV BIK schedule?

Set rates: 0% (2020/21) → 1% (2021/22) → 2% (2022/23-2024/25) → 3% (2025/26) → 4% (2026/27) → 5% (2027/28). Hybrids (≥130mi range, ≤50g CO2) follow same schedule + 1-2 percentage points.

What if I pay for some of the company car?

Capital contributions (paid upfront for car) reduce P11D value (max £5,000 deduction). Private use payments to employer reduce BIK proportionally. Both common ways to lower tax exposure on premium company cars.

Are pool cars a benefit?

No — properly defined pool cars (used by multiple employees, not normally kept at any one's home, used incidentally for private journeys only) are NOT benefits. Strict HMRC tests — easy to fail and trigger BIK retroactively.

Is private medical insurance worth taking from employer?

For higher-rate (40%) employees: NET cost is ~70% of premium (you pay 40% tax, employer pays 13.8% NI). Compared to personally buying: similar policy ~£1,500-2,500. Often cheaper personally if you're higher-rate. Comprehensive group policies via employer often have better terms than individual.

Can I avoid P11D via salary sacrifice?

Salary sacrifice for cars is the most common BIK arrangement — sacrifice gross salary (saves tax + NI) in exchange for benefit (taxed at lower BIK rate). Especially powerful for EVs (sacrifice rate ~28-47%, BIK only 3% × value). Net employee saving £1,000-£3,500/year typical.

What about the fuel benefit charge?

Applies if employer pays for ANY private fuel (even partial). Calculation: £28,200 (2025/26 multiplier) × car's BIK%. Often makes private fuel worse than just paying for it personally — many employees prefer business-only fuel + claim AMAP for any business mileage.

Official UK Sources

Last reviewed: May 2026 against HMRC 2025/26 rates.

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