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In short
- A P11D lists benefits in kind your employer gave you: company car, fuel, medical insurance, loans.
- Issued by 6 July for the previous tax year.
- Benefits are taxed by lowering your tax code, often a year behind.
- A car you no longer have still in your code is a common overpayment.
Common benefits and how they are valued
- Company car: a percentage of list price based on CO2, from 4% for electric cars in 2026 to 2027
- Fuel for private use: the same percentage of a fixed figure
- Private medical insurance: the premium paid
- Interest-free loans over £10,000
How it hits your pay
HMRC reduces your code so the tax on the benefit is collected through PAYE. Because the P11D arrives in July, the adjustment often lags, and if the benefit stops the code may not catch up for a year or more.
Payrolled benefits
Many employers now tax benefits through payroll each month instead, so no P11D and no code change. Mandatory payrolling is planned from April 2027.
Worked example
A field sales rep hands back a company car in May but the £5,000 benefit stays in his code all year. At 20% he overpays about £1,000 until HMRC reconciles or he tells them.
Questions
Does a van count?
A flat benefit of £4,170 in 2026 to 2027 if there is private use; nil for electric vans.
Can I claim expenses against a company car?
Not mileage, but fuel you paid for on work journeys and were not reimbursed.
This guide is general information, not advice about your circumstances. Figures use HMRC rates for the 2026 to 2027 tax year. We are a paid tax agent and not HMRC.
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