P11D Benefit in Kind Calculator UK

Calculate your P11D Benefit in Kind (BIK) cash equivalent, income tax, and employer Class 1A NI for 2025/26. Covers company cars, fuel benefit, private medical insurance, beneficial loans, and other benefits. Free, private, and no sign-up required.

Use the manufacturer's list price including VAT, plus accessories. Exclude the first-year registration fee.
Any contribution you made towards the cost of the car (max £5,000 allowed).
Note: The car fuel benefit applies if your employer provides fuel for private journeys in a company car. For 2025/26, the fuel multiplier is £27,800. The BIK is calculated as £27,800 × appropriate percentage (same CO2/fuel percentage as the car). Enter the car details below.
The full annual cost your employer pays for your private medical or dental insurance policy.
Official Rate 2025/26: 2.25%
Tax applies only if the total outstanding balance of all qualifying loans exceeds £10,000 at any time in the tax year. The de minimis exemption removes the charge entirely for smaller balances.
Use the average balance method: (opening balance + closing balance) ÷ 2. Or use the precise method if balances varied significantly.
Enter any interest you already paid to your employer on this loan. Leave 0 if it is interest-free.
Examples: gym membership, subscriptions, accommodation (above exempt limit), living expenses, vouchers, etc. Enter the full annual value your employer reports on the P11D.
Used to determine your marginal income tax rate (20%, 40%, or 45%). Enter gross salary before any BIK adjustment.
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How P11D Benefit in Kind Tax Works in 2025/26

A Benefit in Kind (BIK) is any non-cash perk your employer provides beyond your salary. HMRC treats these as taxable employment income, and the values are reported annually on form P11D. For 2025/26 (the tax year ending 5 April 2026), employers must submit P11D forms by 6 July 2026, and Class 1A National Insurance on those benefits must be paid by 19 July 2026 (22 July if paying electronically). You as the employee pay income tax on the cash equivalent at your marginal rate — 20%, 40%, or 45% — usually through an adjusted PAYE tax code the following year.

Common benefits reported on P11D include company cars, private fuel for personal journeys, private medical or dental insurance, beneficial loans (low or zero-interest employer loans), non-exempt accommodation, and season tickets or subscriptions. Some benefits are fully exempt — workplace canteen meals, mobile phones (one per employee), cycle-to-work schemes, and childcare vouchers issued before April 2011. Always check whether a specific benefit qualifies for an exemption before including it in a P11D calculation.

Company Car BIK and 2025/26 CO2 Bands

The company car BIK is calculated as: List Price × Appropriate Percentage. The list price is the manufacturer's published price including VAT and accessories, but excluding the first-year registration fee. Any employee capital contribution (up to £5,000) reduces the list price. The appropriate percentage is set by HMRC based on CO2 emissions (g/km) and fuel type.

For 2025/26, fully electric cars have an appropriate percentage of just 2% — making them the most tax-efficient option by far. A £40,000 electric car produces a BIK of only £800, costing a 40% taxpayer just £320 in tax per year. By contrast, a petrol car emitting 120g/km has an appropriate percentage of 29%, giving a BIK of £11,600 on the same list price — costing £4,640 per year. Plug-in hybrids with CO2 of 1–50g/km and an electric range above 130 miles are at 2%, rising to 5% for ranges of 30–39 miles.

Diesel cars carry a 4 percentage point surcharge over petrol unless they meet the RDE2 standard (Euro 6d). The 4% penalty is a significant cost to bear in mind when choosing between diesel and petrol company cars.

Fuel Benefit, Medical Insurance, and Beneficial Loans

If your employer provides fuel for private use in a company car, a separate car fuel BIK applies. For 2025/26, the fuel multiplier is £27,800, and the BIK is: £27,800 × the same appropriate percentage as your car. Even modest private fuel use makes this expensive — a petrol car at 29% produces a fuel BIK of £8,062. It is almost never tax-efficient unless your private mileage is very high. Employees should keep a mileage log and consider repaying the employer for private fuel instead.

Private medical insurance is valued at the annual premium your employer pays — the full amount is a P11D benefit. A £1,500 premium costs a 40% taxpayer £600 extra tax per year, plus the employer pays £207 in Class 1A NI. For beneficial loans, the charge arises only when the total outstanding balance exceeds £10,000. The taxable benefit is: (official rate × average balance) minus any interest actually paid. The official rate for 2025/26 is 2.25%. On a £30,000 loan with no interest paid, the BIK cash equivalent is £675.

Employer Class 1A National Insurance on Benefits

Employers pay Class 1A NI at 13.8% on the total cash equivalent of all P11D benefits. This is a cost to the business, not the employee, but it affects the total cost of providing benefits. For example, a company car with a £10,000 BIK cash equivalent costs the employer an additional £1,380 in Class 1A NI on top of any salary cost. Employers who payroll benefits through the monthly payroll do not avoid Class 1A NI — it remains due at year end. From April 2026, payrolling benefits will be mandatory for most employers, replacing the paper P11D process for income tax purposes.

Salary sacrifice arrangements can be highly efficient where an employee gives up gross salary in exchange for a benefit, reducing both employee income tax and employee National Insurance. However, since April 2017, most salary sacrifice benefits are valued at the greater of the cash equivalent or the salary foregone — limiting the tax advantage. Electric cars remain the notable exception, where salary sacrifice continues to be highly advantageous because the low BIK rate (2%) is almost always well below the salary sacrifice amount. Last updated: April 2025.