P11D

In recruiter context

Employers complete P11D for each employee receiving non-cash benefits exceeding £50/year. The benefit value is added to the employee's taxable income, increasing their tax liability. Common P11D items: company car (cash equivalent based on CO2 emissions and list price), private medical insurance, beneficial loans, accommodation. Many employers now use payroll-based benefit-in-kind reporting (Optional Remuneration Arrangements) instead of P11D. Employees can check their P11D against their PAYE coding notice; mistakes are common, especially after benefit changes.