Employee Benefits in Kind (P11D) Calculator 2024/25
Calculate the taxable value of benefits in kind (BIK) provided to employees, the resulting income tax cost for the employee, and the employer's Class 1A NI liability at 13.8%. Covers company cars, private medical insurance, gym membership, loans, and more.
Benefits in Kind (P11D) Calculator
2024/25 — Class 1A NI at 13.8% | Fuel benefit charge £27,800 | Official interest rate 2.25%
Select the employee's marginal income tax band
Include a company car benefit in kind
Full premium paid by employer. Leave blank if not applicable.
Annual cost of employer-provided gym membership. Leave blank if not applicable.
Only the amount above £10,000 is taxable. BIK = excess × 2.25% (official rate 2024/25).
Company mobile phone
One employer-provided mobile phone per employee is exempt from BIK tax — no P11D reporting required. Additional phones are taxable at the private-use value.
Annual rental value of living accommodation (simplified: use annual rateable / rental value). Leave blank if not applicable.
Label for any other taxable benefit (optional)
Cash equivalent value of the additional benefit
5 Benefits in Kind Planning Tips
- Salary sacrifice can reduce BIK tax:Arrangements for electric cars and cycle-to-work schemes can reduce the employee's taxable income and the employer's Class 1A NI bill.
- Electric company cars have the lowest BIK rates: At just 2% for 2024/25, a £40,000 electric car creates only £800 of BIK — versus £7,600+ for a comparable diesel. Rates remain very competitive until 2028.
- Trivial benefits up to £50 are exempt: Small gifts such as flowers, wine, or a birthday cake costing £50 or less do not need P11D reporting. Directors of close companies have an annual cap of £300.
- HMRC app lets employees check their BIK: Employees can view and challenge their BIK values directly through the HMRC app, reducing P11D disputes.
- PAYE Settlement Agreements (PSA): Employers can apply for a PSA to pay income tax and NI on behalf of employees for minor or irregular benefits, saving admin and protecting employee net pay.
How Benefits in Kind Tax Works
A benefit in kind (BIK) is any non-cash perk provided to an employee by their employer. The monetary value of most BIKs is treated as taxable income — the employee pays income tax on the BIK value and the employer pays Class 1A National Insurance at 13.8% on the total. Employers must report BIKs on form P11D (or P11D(b) for the Class 1A NI declaration) by 6 July following the end of the tax year.
Company Car BIK Rates 2024/25
The appropriate percentage for a company car depends on its CO2 emissions and fuel type. Electric cars attract just 2%, making them highly tax efficient. Petrol and diesel rates start at 15% (51–75 g/km) and rise to a maximum of 37%. Diesel cars attract a 4% surcharge unless they meet the RDE2 standard.
Key Deadlines
- 6 July: P11D forms due for each employee with BIK
- 19 July: Class 1A NI payment deadline (22 July if electronic)
- 31 January: Employee pays income tax on BIK via Self Assessment or PAYE coding notice