# What is a P11D value and how do you find it?

‘P11D value’ refers to the value of a company car according to HMRC. To work out your P11D value, you’ll need to know the list price of the vehicle and the vehicle delivery tax amount.

In this guide, we will define P11D value – and show you the formula to calculate the P11D value for your next motor. We’ll also cover the formula for using a P11D value to calculate your company car tax.

## What is a P11D value?

P11D value indicates the value of a company car to HMRC. This value is used to calculate company car tax.

Please note: P11D value is sometimes confused with the P11D form. However, these two are completely different things – a P11D form is a document that businesses submit to HMRC each year to list any expenses or benefits given to directors or employees.

## Understanding P11D value

A car’s P11D value includes its list price, VAT and any delivery charges – but excludes the registration fee and first year’s road tax.

Please note: A car’s P11D value is different from its ‘road price’, which covers everything necessary to get the car on the road – including the list price, registration, delivery fees – and the first year’s road tax.

## How to calculate P11D

• A car’s P11D value is the manufacturer’s list price, which includes its delivery charges and VAT at the time of registration.

• The P11D value also includes the price of any factory options, such as chargeable trims or paintwork.

• P11D excludes any discounts, registration fees and annual road tax.

Here is a quick breakdown of how to calculate the P11D value of a car:

List price = £14,700 inc. VAT

Delivery fee = £650

First registration fee = £55

P11D value = £15,350 (vehicle list price + delivery price)

## Calculating company car tax using P11D value (with examples)

• Company car tax is calculated by multiplying your P11D value by the CO2 tax band percentage of the vehicle. This will give you your Benefit in Kind (BiK) tax amount.

• Finally, multiply this figure by your income tax rate percentage to get your company car tax amount.

Here is an example of a company car tax calculation with P11D value:

• The company car’s emissions are within the 80-84 g/km bracket (a 21% CO2-based tax band).

• Your salary is between £11,851 and £46,350 (which holds a 20% basic income tax rate).

• Your P11D value is £15,350.

You can work out what you’ll pay in company car tax with the following formulas:

P11D value x CO2-based tax band = BiK amount

£15,350.00 x 0.21 = £3,223.50

BiK amount x Income tax rate = Company car tax amount

£3,223.50 x 0.20 = £644.70

Here is another example of a company car tax calculation, this time for a car with a higher list price and CO2 tax band:

• The car has a P11D value of £35,000 and a CO2 emissions figure of 154g/km, placing it in the 35% banding.

• This would result in a BIK amount of £12,250.

• At a 20% income tax rate, your company car tax bill would be £2,450 annually (increasing to £4,900 at the 40% rate - and £5,512 at the highest 45% rate).

## P11D value vs. On-the-Road price

A car’s P11D value is different to its On-the-Road (OtR) price. An OtR price includes all the costs needed to put the car on the road.

This typically includes the list price, registration and delivery fees, first-year road tax, and number plate printing. Therefore, due to all the extra costs included, a car’s OtR price will be higher than its P11D value.

## Minimising company car tax

There are various ways to minimise your company car tax:

• Opting for a fully electric model will allow you to avoid road tax fees.

• Fully electric company cars are charged BiK tax at a rate of just 2% - the lowest rate currently available.

• Avoid choosing a diesel model. There is currently a 3% BiK surcharge for all diesel engine cars.

• The lower your car’s value, the less company car tax you’re likely to pay.

• When choosing a company car, it’s important to consider both the business’ priorities and tax efficiency.