What is P11D Value?

The electric vehicle (EV….) world is full of acronyms/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?


Put simply, the P11D value of your car is used to calculate the amount of benefit-in-kind (BIK) that you pay. Briefly, BIK is a tax band which is determined on the vehicle’s carbon dioxide emissions. For zero-emissions vehicles like EVs, this is just 1% at the moment, rising to only 2% from 2022 to 2025. In comparison, the BIK rate for a normal petrol or diesel car is often over 25%!


How do you use this to calculate the amount of BIK you pay?


To calculate BIK using the P11D value, all needs to be done is to multiply the P11D value by the BIK percentage. Once you've done this, you then multiply the BIK value by your income tax bracket (e.g. 20%).


Here’s an example:

  • For an electric car with a P11D value of £20,000, the BIK value would only be £200 in 2021-22, as the BIK rate is just 1%. For someone in the 20% income tax bracket, the amount of company car tax you pay would be £40, as you multiply the BIK value by your income tax percentage (£200 x 0.2 = £40)


Want to find out more?


If you have any further questions about this or anything else in the electric vehicle world, you can book in a call with one of our Electric Vehicle Specialists here!


We also offer free online workshops, designed to help make the switch to electric as simple as possible. To sign up to one, head to this page.


As always, you can drop us an email with any questions you have at hello@octopusev.com.


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