Benefits in kind cover a wide range of things employers give staff outside of normal pay, and expenses payments cover cash paid to or on behalf of an employee that isn't run through payroll. We calculate tax on benefits provided consistently, whether they're common or unusual, and most businesses have a mix of both by the time they've been trading a few years.

Company Cars, Vans and Fuel Benefits

Company cars are still one of the biggest taxable benefits by value, and one of the most common benefits in kind on any P11D. In 2024/25, 920,000 employees received a company car benefit, an increase of 80,000 on the year before, and the total taxable value of company car benefits reached £3.07 billion.

Electric cars are changing this picture fast. There were 467,000 fully electric company cars in 2024/25, up from 342,000 the year before, a rise of around 36% in a single year. Around 693,000 company car recipients had vehicles emitting 74g/km of CO2 or less, so low-emission fleets are now the norm rather than the exception.

Only around 40,000 company car recipients also received a taxable car fuel benefit, since most employers worked out that free or subsidised fuel for private journeys rarely saves the employee money once the benefit charge is applied. Employers who still provide free fuel for private mileage need this valued separately from the car itself.

We handle company car P11D calculations, private fuel and car fuel benefit calculations, and company vans too. Company vans follow different rules to cars, especially around fuel and private use. The appropriate percentage used to work out the benefit charge depends on emissions and list price, and it changes most tax years as rules are updated.

If a car changes hands part way through the year, or an employee contributes to the cost, we factor that into the annual value so you're not paying tax on more than you should. Incidental private use of a van is treated differently from regular use for private purposes, and we'll tell you when the more relaxed rule applies. Employers sometimes forget that private use also includes ordinary travel between home and a regular workplace.

Private Medical Insurance and Other Common Benefits

Private medical insurance and private medical treatment are among the most common taxable benefits we report, alongside mobile phones, gym memberships, professional subscriptions, and non-cash vouchers. Common benefits like these often get missed when a business grows quickly, and different people end up managing different perks.

Trivial benefits meeting the relevant conditions, including the £50 cost limit, are generally exempt from reporting, so not every benefit you provide has to go on a P11D. We check which of your benefits actually qualify as trivial benefits, so you're not reporting anything you don't need to and not missing anything you do. Childcare vouchers and employer-provided childcare have their own rules too, and older schemes are often still running alongside newer, non-cash benefits arrangements.

Expenses Payments and Reimbursed Expenses We Also Report

Not every P11D entry is a benefit. Employers also need to report employee expenses and expense payments that haven't gone through payroll, and this catches businesses out almost as often as company cars do. Expenses that don't qualify for an exemption become taxable expenses and need to be reported in the same way as a benefit.

We report employee expenses such as reimbursed expenses for travel, subsistence, or equipment bought personally and paid back later. If you make a cash payment to cover a cost rather than reimbursing a receipt, that usually needs to be reported too, and we'll flag it during our review.

Getting expenses and benefits right together matters, because HMRC looks at both when it checks a P11D. Expense payments sit alongside taxable benefits on the same form, so we handle both together rather than treating them as separate jobs. We report expenses and benefits paid across the year, reconcile them against your accounting records, and only pay expenses through the P11D route where that's genuinely the correct treatment rather than the easiest one.

Loans, Accommodation and Other Benefits We Handle

Beneficial loans can require reporting where the relevant exemption doesn't apply. The general small loan exemption applies where the total balance doesn't go over £10,000 at any point in the tax year, and interest-free loans catch out more directors than you'd think.

We also handle living accommodation, assets provided for an employee's private use, relocation benefits, and personal expenses paid by the company. Living accommodation is one of the more complex benefits to value, since HMRC often uses an annual value rather than a simple market value figure.

For owner-managed businesses, director benefits often need extra care, since HMRC pays closer attention to how directors are paid and rewarded, and to any assets transferred to them during the year. Company assets made available for private use, even occasionally, can trigger a small benefit charge, and we check whether that private use is incidental or regular before we decide how to treat it.

Some employers offer flexible benefit packages or use optional remuneration arrangements, where staff give up salary in exchange for a benefit. These need their own calculation, because the rules changed a few years ago and older assumptions about tax relief no longer hold in every case.

Cost is one of the first things employers ask about, so let's deal with it directly. We charge somewhere between £55 and £340 per employee, with the total cost depending on how many staff receive taxable benefits and how many benefit types you're reporting.

A small company with two or three directors on simple benefits like private medical insurance will sit at the lower end. A larger employer with company cars, beneficial loans, and several benefit types across dozens of staff will sit at the higher end, mainly because each employee's figures take longer to check and reconcile, and there's an additional cost every time a new benefit type is added partway through the tax year.

Get in touch, and we'll give you a fixed quote once we know your employee numbers and benefit types, rather than leaving you guessing at an extra cost later. The price is a rough guide, and the actual cost varies depending on your circumstances, so treat these figures as a starting point rather than a final number.

Benefits reporting is changing. From April 2027, mandatory payrolling will begin for certain benefits, including company cars, car fuel, vans, van fuel, and employer-provided medical benefits.

This means some of what currently goes on a P11D will instead run through your payroll each pay period, with tax and National Insurance contributions collected in real time rather than after the tax year ends. Benefits can increasingly be payrolled instead of reported on individual P11Ds, although P11D(b) obligations and Class 1A National Insurance contributions can still apply, so the paperwork doesn't disappear. It just moves.

We're already helping clients get ready for this change. That means reviewing which benefits you provide, checking that your payroll software can handle the new reporting requirements, and setting up a year-round process for recording benefits instead of scrambling every June. HM Revenue reporting increasingly ties P11D information to payroll and Real Time Information, rather than treating it as a separate annual task, so the businesses that adapt early will have the easiest transition and the fewest year-end surprises.

We'll also review your paye settlement agreement if you have one, since some benefits currently grouped under it may sit better reported directly once payrolling becomes standard for more than one employee's benefit type.