Company cars – is the list price always the P11D price?

Date posted: 11th Jul 2022

As a general rule, when completing forms P11D to declare a company car, it is the original list price of the company car that is declared rather than the price paid.

So for instance, if your employer provides you with a two year old car that cost them £30,000 but originally cost £50,000 when it was new, then it is the £50,000 that is declared on the P11D. The list price then forms a component part of the value that is the taxable benefit i.e. the amount that is subject to tax/national insurance.

However, there is a rule for “classic” cars that means that the list price may not be the value declared on the P11D. This is because the original list price will be low, compared to the current value.

Therefore special rules apply when:

  1. The car is at least 15 years old at the end of the tax year of assessment.
  2. The market value of the car is £15,000 or more.
  3. The original list price is less than the market value of the car.

The value then declared on the P11D would be the market value of the car for that year. Of course, this means that you need to consider the valuation every year when preparing forms P11D.

If you are considering a classic car, then you may want to consider a car with market value of less than £15,000. In that case, the benefit would be based on the original list price of the car.

Company car taxation is particularly complicated with some electric cars and hybrid cars benefitting from lower tax charges than ordinary diesel and petrol cars. In addition, there are complexities around salary sacrifice rules. Therefore advice is critical.

If you need advice, please give us a call.


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