What Car? Q&A - Understanding company car tax

Q: I’m trying to understand company car tax, and keep reading about the P11D. I realise the benefit-in-kind tax I pay will depend on my car’ carbon dioxide emissions, but where does the P11D come in?
Mrs A Phillips

A: Strictly speaking, the P11D is the form your employer must supply to the Inland Revenue, giving details of your company car and travel expenses. However, ‘P11D’ or ‘P11D value’ is often used to describe the value of your company car for tax purposes. This is the list price of the car on the day of registration, including VAT, delivery charges and the cost of optional extras, but excluding Vehicle Excise Duty (which varies according to carbon dioxide output) and the cost of first registration (£38).