A P11D is the form your employer sends HMRC after each tax year listing the taxable benefits and expenses you received that were not taxed through payroll, such as a company car or private medical insurance. You and HMRC must have it by 6 July. HMRC then taxes the benefits by lowering your tax code.
You do not pay anything when the P11D is filed. The tax is collected through PAYE: HMRC takes the cash value of your benefits off your tax-free allowance, so more of your salary is taxed each month. That is why a benefit you received last year can show up as a lower take-home figure this year.
Key P11D figures for 2026/27
| Figure | 2026/27 value | In force from | Source |
|---|---|---|---|
| Class 1A NIC on your benefits, paid by your employer | 15% | 6 April 2025, unchanged for 2026/27 | HMRC |
| Official rate of interest on a beneficial loan | 3.75% | 6 April 2025, unchanged for 2026/27 | HMRC |
| Loan ignored while the total outstanding stays below | £10,000 throughout the year | not reset annually | HMRC |
| Car fuel benefit multiplier | £29,200 | 6 April 2026 | HMRC |
| Van benefit charge / van fuel charge | £4,170 / £798 | 6 April 2026 | HMRC |
| Approved mileage, cars and vans | 55p a mile for the first 10,000 business miles, then 25p | 6 April 2026 | HMRC |
| Trivial benefits exemption | £50 or less a benefit | not reset annually | HMRC |
| Deadline to file the P11D and P11D(b) and give you your copy | 6 July after the tax year ends, so 6 July 2027 for 2026/27 benefits | not reset annually | HMRC |
| Deadline for your employer's Class 1A payment | 22 July, or 19 July if paying by cheque | not reset annually | HMRC |
The third column is the date each figure came into force, not the date this page was reviewed. Two of these last changed in April 2025 and carry into 2026/27 unchanged, which matters if you are comparing a 2026/27 P11D against an older calculation.
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What goes on a P11D
A P11D lists benefits and expenses your employer provided but did not run through payroll. The most common items are:
- Company car and, if your employer pays for private fuel, the car fuel benefit. For most people this is the largest figure. See the company car tax guide.
- Private medical or dental insurance paid by your employer.
- Living accommodation provided by your employer.
- Beneficial loans: interest-free or cheap loans, once the total you owe goes above £10,000 at any point in the year (HMRC).
- Vans available for private use, and van fuel.
- Assets given or lent to you, such as equipment you keep.
- Non-exempt subscriptions and memberships, such as a gym.
Items that do not go on a P11D:
- Salary, bonus, commission and overtime. These are taxed through PAYE.
- Employer contributions to a registered pension scheme.
- Mileage payments at or below the approved rates. For 2026/27 that is 55p a mile for the first 10,000 business miles in a car or van and 25p after that, 24p for motorcycles and 20p for bicycles (HMRC).
- Trivial benefits costing £50 or less that are not cash and not a reward for work (HMRC).
- Benefits your employer has payrolled, because those are already taxed through your pay.
Payrolled benefits: when there is no P11D
An employer can tax benefits through payroll instead of reporting them on a P11D. The taxable value is added to your pay each period and taxed there, and your tax code is not reduced for it. You will usually see a separate line on your payslip for the benefit.
This is about to become compulsory for some benefits. HMRC has confirmed that from April 2027 payrolling will be mandatory for company cars, car fuel, vans, van fuel and employer-provided medical benefits, and from April 2028 for most other benefits. Loans and accommodation are to be confirmed later (HMRC). For 2026/27, P11Ds are still filed as normal for anything not payrolled.
How a P11D changes your tax code
HMRC subtracts the value of your benefits from your Personal Allowance and issues a new tax code. It uses the figures your employer reports to estimate the benefit for the current year, and it reconciles any difference after the year ends, which is when a P800 can arrive.
Worked example: £5,000 of benefits
You have the standard £12,570 Personal Allowance and code 1257L (HMRC). Your employer reports £5,000 of private medical insurance and car benefit.
| Step | Figure |
|---|---|
| Personal Allowance | £12,570 |
| Less benefits in kind | −£5,000 |
| Allowance left | £7,570 |
| New tax code | 757L |
| Extra tax a year at the 20% basic rate | £1,000 (about £83 a month) |
| Extra tax a year at the 40% higher rate | £2,000 (about £167 a month) |
| Class 1A NIC your employer pays (15%) | £750 |
The Class 1A charge is your employer's cost. It never appears as a deduction on your payslip (HMRC).
Worked example: an interest-free loan
Your employer lends you £20,000 interest-free and the balance stays at £20,000 all year. Because the balance is above £10,000, the loan is a taxable benefit. Using the 3.75% official rate of interest for 2026/27 (HMRC), the benefit is £20,000 × 3.75% = £750. If you repay part of the loan during the year, the benefit is worked out on the reduced balance.
When a P11D gives you a K code
If your benefits are worth more than your Personal Allowance, your allowance becomes negative and HMRC issues a K code, which adds the excess to your taxable pay. With £18,000 of benefits against a £12,570 allowance, the excess is £5,430 and the code is K543.
Your employer cannot deduct more than 50% of your pay in tax in any pay period when using a K code. HMRC calls this the overriding limit (HMRC). Any tax that cannot be collected is picked up later. The K code guide works through the maths.
What to check when your P11D arrives
- Every item against what you actually had. A benefit you did not receive, or received for part of the year only, should not be shown for the full year.
- The company car details. The charge depends on the car's list price, its CO2 emissions and, for plug-in hybrids, its electric range. A wrong emissions figure or a list price that leaves out options changes the charge.
- Dates. A car handed back in December should be charged to December, not to 5 April.
- Medical insurance. The figure is normally the cost to your employer of providing the cover.
- Loans. Check the balance used and that the 3.75% official rate is applied only when the £10,000 threshold is exceeded.
- HMRC's record. Sign in to your personal tax account and compare the benefits HMRC is using in your tax code with the P11D.
What to do if your P11D is wrong
- Tell your employer in writing which figure is wrong and why. The employer filed the form and is the only party that can amend it.
- Ask for a corrected P11D. HMRC's guidance on completing P11D and P11D(b) covers amendments.
- If your employer will not correct it, contact HMRC on 0300 200 3300 with your evidence so it can adjust your tax code (HMRC).
- If you are in Self Assessment, you enter your benefits from the P11D on the employment pages of your return, so correct figures matter there too (HMRC SA102 notes).
P11D and P11D(b)
- P11D is the report for one employee. You get a copy, or the same information in another form, by 6 July.
- P11D(b) is the employer's summary. It declares the total Class 1A NIC due on all employees' benefits. You never see it. HMRC charges a penalty of £100 per 50 employees for each month or part month it is late (HMRC).
Frequently asked questions
What is a P11D form?
A P11D is the form your employer sends HMRC after each tax year listing the benefits in kind and expenses you received that were not taxed through payroll, such as a company car, private medical insurance, living accommodation, a beneficial loan above £10,000 or employer-paid fuel.
When should I receive my P11D?
By 6 July after the end of the tax year. Your employer must give you a copy, or the same information in another form, by that date and file the P11D with HMRC by the same date. The employer's Class 1A National Insurance on the benefits is due by 22 July, or 19 July by cheque.
How does a P11D change my tax code?
HMRC subtracts the value of your benefits from your Personal Allowance. With £5,000 of benefits, a 1257L code becomes 757L, because £12,570 less £5,000 leaves £7,570 of tax-free pay. At the basic rate that costs £1,000 a year in extra tax.
Do I have to pay tax on my P11D?
Yes, but you do not pay it as a lump sum when the form is filed. HMRC collects it through PAYE by reducing your tax code. If you complete a Self Assessment return, you also enter the benefits on the employment pages.
Do I pay the Class 1A National Insurance on my benefits?
No. Class 1A National Insurance on benefits in kind is charged at 15% in 2026/27 and is paid by your employer. It never appears as a deduction on your payslip.
What should I do if my P11D is wrong?
Tell your employer in writing, because only the employer can amend the form, and ask for a corrected P11D. If they will not correct it, contact HMRC on 0300 200 3300 with your evidence so your tax code can be adjusted.
Sources
All sources were opened and checked by PayslipIQ on 21 September 2026.
- HMRC (GOV.UK): Expenses and benefits for employers: deadlines. P11D, P11D(b) and Class 1A deadlines and the late-filing penalty. Verified 21 Sep 2026.
- HMRC (GOV.UK): Rates and thresholds for employers 2026 to 2027. Class 1A rate of 15%. Verified 21 Sep 2026.
- HMRC (GOV.UK): Beneficial loan arrangements: HMRC official rates. The table of actual official rates gives 3.75% from 6 April 2025 with no end date, so 3.75% is the rate for both 2025/26 and 2026/27. Re-read 27 Sep 2026.
- HMRC (GOV.UK): Expenses and benefits: loans provided to employees. The £10,000 threshold. Verified 21 Sep 2026.
- HMRC (GOV.UK): Travel: mileage and fuel rates and allowances. Approved mileage rates from 2026/27, car fuel multiplier, van charges. Verified 21 Sep 2026.
- HMRC (GOV.UK): Expenses and benefits: trivial benefits. The £50 limit. Verified 21 Sep 2026.
- HMRC (GOV.UK): Changes to reporting of benefits in kind from April 2027. Mandatory payrolling timetable. Verified 21 Sep 2026.
- HMRC (GOV.UK): If you have a K in your tax code. The 50% limit. Verified 21 Sep 2026.
- HMRC (GOV.UK): Income Tax rates and Personal Allowances. Personal Allowance of £12,570. Verified 21 Sep 2026.
Disclaimer
PayslipIQ provides educational guidance based on published HMRC rules. It is not regulated tax advice. Benefit calculations for company cars, beneficial loans and living accommodation can be technically involved. For a substantial error or an unusual arrangement, speak to your employer's payroll team, HMRC or a qualified tax adviser.
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Check my payslip freePayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.