What is P11D Value?
Apr 26, 2021
2 min read
The electric vehicle world is full of acronyms and phrases that many people have never heard of, which can make everything seem pretty daunting! At Octopus Electric Vehicles, we want to make it as simple as possible for people to understand the various terms associated with EVs, this time focusing on P11D.
What exactly is P11D value?
The P11D value is the list price of your car (including VAT) combined with any delivery charges, but does not include the car’s first registration fee or annual road tax.
What is P11D value used for?
The P11D value is used to calculate Benefit-in-Kind (BiK) – the company car tax you pay. BiK is a percentage of the P11D value, set by the government, and is applied to your income tax bracket.
For zero-emissions vehicles like EVs, the BiK rate is currently 3% for 2025/26, rising gradually over the coming years:
- 2025/26 - 3%
- 2026/27 - 4%
- 2027/28 - 5%
- 2028/29 - 7%
- 2029/30 - 9%
Even at 9%, EVs remain far more tax-efficient than petrol or diesel vehicles.
How do you use this to calculate the amount of BIK you pay?
To calculate Benefit in Kind using the P11D value, all that needs to be done is to multiply the P11D value by the Benefit in Kind percentage. Once you've done this, you then multiply the BiK value by your income tax bracket (e.g. 20%).
Our EV Experts are here to help you understand what will best suit your needs. You can book a call with our team today.
