What is a P11D and How Does it Work With Salary Sacrifice?
A P11D is an annual form HMRC needs from employers for every staff member who receives taxable benefits or expenses, like company cars or interest-free loans. This guide will help you understand P11Ds, how they work and how they relate to electric car salary sacrifice schemes.
What Is A P11D Value?
A P11D is a UK tax form employers submit to HMRC each year to report any taxable benefits employees receive in addition to salary, such as company cars, health insurance, or interest-free loans.
When salary sacrifice is used, the benefit provided (for example, an electric company car) is still reported on a P11D, and the employee pays tax based on its Benefit in Kind (BiK) value rather than the sacrificed salary.
For electric cars, Benefit in Kind Taxrates are much lower than for petrol or diesel vehicles, which is why salary sacrifice schemes often result in significant tax savings. The BiK percentage depends on three factors: the level of CO2 emissions produced by the car, the P11D value (the on-road price of the car), and the employee’s tax bracket.
Electric vehicles and plug-in hybrids are increasingly attractive due to their lower BiK rates. This can significantly impact your P11D form, as the value of these benefits is taxable. With The Electric Car Scheme, employees can benefit from a brand-new electric car, often at a substantial discount, potentially through a salary sacrifice arrangement. This is similar to other taxable benefits.
To determine how much BiK you should pay, do the following calculation:
P11D value of the car x BiK rate x your personal income tax bracket = BiK tax owed.
Understanding The P11D Form
The P11D form layout typically includes sections for personal details, various benefit categories, and their corresponding values.
What Is A P11D Form Used For?
According to HMRC guidance, the P11D form is a document used in the UK by employers to report taxable benefits and expenses provided to employees and directors. Employees who receive taxable benefits or expenses during a tax year might get given a P11D form by their employer. This form outlines the specific benefits received and their respective cash equivalent value, which is used to calculate the individual tax liability on these benefits.
The typical layout of the P11D form includes sections for personal details, various taxable benefit categories such as company cars, and their corresponding annual values.
The primary purpose of the P11D form is to ensure that employees pay the correct amount of tax on the benefits they receive from their employment.
This holds significance when you're leasing an electric car through a salary sacrifice scheme, like The Electric Car Scheme because it's an additional benefit separate from or in addition to your gross salary.
P11D Filing Deadlines
Employers must report expenses and benefits using the P11D form to HMRC by the 6th of July. Employers also need to provide their employees with a copy of this information and report the total Class 1A National Insurance owed by the same deadline.
Is There An Alternative To Filing P11Ds?
There are a couple of alternatives to filing P11Ds, depending on your position:
PAYE Settlement Agreement: If your employer pays for certain benefits on your behalf, they might consider using a PAYE Settlement Agreement. This allows employers to pay the tax on certain benefits without needing to report them on a P11D.
Using PAYE For Benefits: Some benefits can be taxed through the PAYE system, meaning they don’t need to be reported on a P11D. This is typically used for minor benefits or for those with a low value.
Opting For Cash Benefits: Instead of providing non-cash benefits that would need reporting on a P11D, employers may choose to offer cash bonuses or salary increases.
If you’re an employer and are intending to payroll benefits and expenses, you must register them using HRMC using the relevant online service. It’s important to note, this must be completed before the start of the tax year.
What benefits are reported on a P11D?
Employers can payroll all employee benefits apart from:
Employer-provided living accommodation,
Interest-free and low-interest loans.
The Benefits Covered In The P11D?
The following benefits are included in a P11D:
Company cards and rail season tickets,
Health insurance,
Entertainment and travel expenses,
Payments for work use of mobile,
Childcare costs,
Vehicle salary sacrifice
If you’re an employer and need to work out the cash equivalent of providing a car and a fuel benefit to an employee you will need to use P11D WS2 and P11D WS2b.
Salary vs Salary Sacrifice on a P11D
See how the use of a salary sacrifice scheme affects your tax. In this case, salary sacrifice for electric cars proves to be more tax efficient as savings are applied to the price of the lease based on your top salary tax band.
| Feature | Normal Salary | Salary Sacrifice (Electric Car) |
|---|---|---|
| Tax Method | Taxed fully via PAYE (Income Tax + NI) | Taxed via Benefit in Kind (BiK) |
| P11D Reporting | Not reported on P11D | Reported on P11D (Section F) |
| Calculation Base | Full gross salary amount | P11D Value of the car (List Price) |
| Tax Efficiency | 0% savings (Standard tax rates apply) | High savings (Low BiK rate supersedes salary tax) |
What Are The Penalties?
You may have to pay a penalty if you carelessly or deliberately submit inaccurate information in the tax return that results in you:
Not paying enough tax,
Over-claiming tax reliefs.
What Is The P11D Value For EVs?
The P11D value of a car is the official price used for tax purposes in the UK, encompassing the vehicle’s base price and any extras, but excluding Vehicle Excise Duty (VED) and the registration fee. This value determines the tax an employee pays for personal use of a company car; the higher the P11D value, the greater the tax liability.
Taxes on electric cars will gradually increase by 1% each year starting in 2025, rather than jumping from 2% to 5%. In contrast, high-polluting petrol and diesel cars could incur taxes of up to 37%. As a result, electric car drivers can enjoy significant tax savings, while petrol and diesel vehicles remain more costly due to higher taxes and running expenses. The Electric Car Scheme simplifies the BiK calculation, so employees and employers don’t need to worry about it. We’ve broken down how this works for some popular cars available through the scheme.
At The Electric Car Scheme, we help employees unlock government tax incentives and save 20-50% on any electric car. To participate, you simply agree to have a portion of your pre-tax salary deducted each month to cover the car’s cost. You can choose the car you want, add any extras, and drive away while saving thousands of pounds.
Employees opting for an electric car through salary sacrifice benefit in two key ways.
The lower Benefit-in-Kind (BiK) tax rates applicable to electric vehicles, particularly when accessed through a salary sacrifice arrangement, directly reduce an employee's tax liability. This decrease is calculated based on the vehicle's value, leading to significant savings compared to traditional petrol or diesel cars, and impacting the information reported on the annual P11D form
Second, the overall cost of leasing becomes more affordable due to these reduced tax rates. With lower BiK taxes, the taxable value of the car decreases, leading to more manageable monthly lease payments. This makes choosing an electric car a more financially viable option for employees participating in salary sacrifice schemes.
If you decide to use The Electric Car Scheme to lease a BMW i4 Gran Coupe, you'll pay £556 each month - you will save £341 in Income Tax savings and £17 in National Insurance contributions. However, employees will need to pay £61 of Benefit-in-Kind tax.
If you choose to salary sacrifice the Skoda Enyaq Coupe, your monthly cost will be £488 compared to £747 without National Insurance and Income Tax savings. Leasing an electric car has great environmental benefits and will save the driver money in the long term. You can visit The Electric Car Scheme’s quote tool to calculate your savings.
How P11Ds Work With The Electric Car Scheme
After enrolling your business in the scheme, we will annually furnish draft pre-filled P11D forms for your submission to HMRC. These forms are completed for the tax year's conclusion, incorporating Benefit in Kind (BiK) details in both the employee's and the company's P11D submissions. We aim to streamline the process, ensuring simplicity and convenience for both businesses and employees. From an administrative perspective, this service reduces the burden of form preparation and submission for employers. Employees also benefit from a hassle-free process, minimising their involvement in filling out complex tax forms.
Frequently Asked Questions About P11D Forms and Electric Car Salary Sacrifice
When will I receive my P11D form from my employer?
Your employer must provide you with a copy of your P11D form by July 6th following the end of the tax year (which runs from April 6th to April 5th). For example, for the 2025/26 tax year ending on April 5th, 2026, you should receive your P11D by July 6th, 2026. If you're leasing an electric car through The Electric Car Scheme, we provide your employer with pre-filled P11D information annually to ensure timely submission. If you haven't received your P11D by mid-July, contact your HR or payroll department to request a copy.
What happens if my employer doesn't give me a P11D or submits it late?
If your employer fails to provide a P11D or submits it late to HMRC, they may face penalties of up to £300 per 50 employees, plus potential daily penalties for continued delays. However, as an employee, you're still responsible for declaring any taxable benefits on your Self Assessment tax return if you complete one. If you're concerned about a missing P11D, first contact your employer's payroll department. If the issue isn't resolved, you can contact HMRC directly on 0300 200 3300. When you salary sacrifice an electric car, The Electric Car Scheme helps streamline this process by providing all necessary documentation to your employer.
Do I need to do anything with my P11D form once I receive it?
In most cases, you don't need to take any action after receiving your P11D. HMRC automatically adjusts your tax code to collect the Benefit-in-Kind tax through your regular payroll (PAYE system) in the following tax year. However, you should carefully check your P11D for accuracy—verify that the car details, P11D value, and BiK rate are correct. If you complete a Self Assessment tax return, you must declare the benefits shown on your P11D in the employment section. For electric car salary sacrifice, the BiK tax is just 3% in 2025/26, meaning employees save 20-50% compared to traditional car financing methods.
What should I do if the information on my P11D is incorrect?
If you spot an error on your P11D—such as the wrong car model, incorrect P11D value, or inaccurate BiK percentage—contact your employer's payroll or HR department immediately. They'll need to submit an amended P11D to HMRC and provide you with a corrected copy. Common errors include incorrect CO2 emissions figures (particularly important for hybrid vehicles), wrong P11D values, or miscalculated BiK rates. For electric vehicles through salary sacrifice, the BiK rate should be 3% for 2025/26. If left uncorrected, you could end up paying the wrong amount of tax. The Electric Car Scheme provides accurate BiK calculations to employers, minimising the risk of errors.
Can I claim any tax relief or deductions related to my P11D company car?
Generally, you cannot claim tax relief on the Benefit-in-Kind tax itself, as it's calculated based on your personal use of a company car. However, if you use your electric company car for business mileage and pay for electricity yourself, you may be able to claim the HMRC Advisory Fuel Rate for electric vehicles, currently 9p per mile (as of December 2024). This is separate from your P11D and would typically be claimed through your employer or via Self Assessment. With The Charge Scheme, employees can salary sacrifice their EV charging costs and save 20-50% on home, work, and public charging—further reducing the overall cost of running an electric company car.
How does salary sacrifice affect my P11D compared to a traditional company car?
With a traditional company car, the full P11D value is reported, and you pay Benefit-in-Kind tax based on the car's emissions and value through your PAYE tax code. With electric car salary sacrifice, you still have the car reported on your P11D, but you benefit from significantly lower BiK rates (3% for 2025/26) and the salary sacrifice element reduces your gross salary before tax and National Insurance are calculated. This creates a "double saving" effect: you pay less Income Tax and National Insurance on your reduced gross salary, and you pay much lower BiK tax on the electric vehicle itself. For example, a BMW i4 through salary sacrifice costs £556 net per month after saving £341 in Income Tax and £17 in National Insurance, compared to £853 without these savings. Your P11D will show the vehicle benefit, but the overall tax efficiency makes electric car salary sacrifice far more cost-effective than traditional company car arrangements.
Switching to an electric car is one of the most significant ways to make a positive change towards net zero. At The Electric Car Scheme, we want to make it cheaper and easier than any other option. Salary sacrifice makes this possible, allowing employees to save 20-50% on any electric car on any electric car by reducing their salary in exchange for an electric car as a benefit. You can use our quote tool to browse the cars we have available and learn how much you can save or you can read in more detail about how the scheme works here.
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Last updated: 02/02/2026
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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