A benefit in kind is something of value your employer gives you that is not cash, such as a company car, private medical insurance or an interest-free loan. Most are taxable under the Income Tax (Earnings and Pensions) Act 2003. The P11D is the form the employer files to tell HMRC what those benefits were worth, so the right tax can be collected.
What does a P11D report and when is it due?
It lists each taxable benefit and its cash-equivalent value for the tax year. The employer must file the P11D, and the P11D(b) summarising employer National Insurance, by 6 July following the end of the tax year. You should be given a copy of your own P11D by the same date, so you can check the figures against what you actually received.
How does a benefit in kind change my tax?
HMRC usually collects the tax by lowering your tax code, not by taking it from one payslip. If you gain a £6,000 company-car benefit, your tax-free allowance falls and more of your salary is taxed across the year. That is why your tax code can change and your take-home drop even though your gross salary has not moved.
What counts as a reportable benefit?
Common P11D items, each valued under ITEPA 2003 rules:
- Company cars and the fuel provided with them
- Private medical and dental insurance
- Interest-free or low-interest loans above £10,000
- Living accommodation provided by the employer
- Assets given to the employee, such as a phone kept personally
Does my employer pay National Insurance on it too?
Yes. The employer pays Class 1A National Insurance on most benefits, charged at 15% for 2025/26, reported on the P11D(b). You do not pay employee NI on a P11D benefit, only income tax. Note that HMRC plans to make reporting benefits through payroll software mandatory from April 2027 (phased, starting with cars, fuel, vans and medical cover), which will replace the annual P11D for those benefits; confirm the current position on gov.uk before each tax year.
Primary sources
- How to complete forms P11D and P11D(b) — gov.uk — What the P11D reports and the 6 July filing deadline
- Expenses and benefits for employers: deadlines — gov.uk — P11D and P11D(b) due 6 July following the tax year
- Income Tax (Earnings and Pensions) Act 2003 — legislation.gov.uk — ITEPA 2003 — the charge on employment benefits in kind
- Confirming plans to mandate payrolling of benefits in kind — gov.uk — Mandatory payrolling timeline (since deferred to April 2027)
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