P11D
List price for Tax Purpose (also Known as P11D price; taxable price)
The starting point for benefit in kind taxation calculations under HMRC rules. The key definition is the published retail price of the car (as at the day before the date of first-ever registration), including delivery and PDI costs together with the value of any extras and accessories, but excluding VED. The Value for the tax base does not take account of any discounts, bonuses or other short-term cost reductions, so that the starting point for the tax charge is essentially the “retail cost” of the specific car providing to the employee.
Employees can reduce their tax charge by making a capital contributions (subject to a £5,000 cap) when then lowers the list price for tax purposes pound for pound.
