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Understanding P11d Values

The P11D value is the retail price of the car including VAT and the manufacturers delivery charge (including the VAT), but excluding Road Fund Licence and Vehicle First Registration Fee. Tax is payable on factory fitted or dealer fit options or accessories fitted before customer delivery.

Tax is payable on dealer fit accessories fitted after delivery totalling more than £100. Tax will be payable in the tax year in which they were fitted. No tax is payable on telephone hands-free kits or equipment to enable a disabled person to use the car, or for accessories required to enable the employee to do their job, for example, a tow bar where the employee has to tow a trailer on company business.

The method to calculate your company car tax costs in 2022/2023 depends on the vehicle’s P11D price, CO2 emissions and fuel type.

As an example, a Ford Focus 1.0L EcoBoost Hybrid ST Line 125ps 5dr manual, with a P11D price of £24,460 and CO2 emissions of 117g/km attracts a tax charge of 27% of its P11D value.

Therefore £24,460 x 27% provides a taxable value of £6,604.20 equating to an annual tax bill of £1,320.84 (£110.07 per month) for a 20% tax payer, or £2,641.68 (£220.14 per month) for a 40% tax payer.

Information regarding the emission figures for vehicles can be found through the Government Website