Free non-car P11D benefits calculator for employees and company owners, with 2025/26 and 2026/27 rates. Choose employee benefit tax or the company-owner comparison. Supports taxable employer-contracted private medical insurance, dental insurance, health cash plans and gym membership.
Employee mode shows annual Income Tax and its monthly equivalent, not a payslip forecast. A £1,000 benefit at 40% creates £400 annual employee tax, averaging £33.33 monthly. Employer Class 1A NI is shown separately and is not deducted from the employee's pay.
Company-owner mode compares combined company and owner net cash costs. The company route adds benefit cost, employer Class 1A NI and employee Income Tax, then deducts usable Corporation Tax relief on the benefit and employer NI once. The personal route is the gross dividend needed to cover the purchase after dividend tax. Assumes existing post-Corporation-Tax company funds and employee benefit tax paid from existing personal money, not an extra dividend.
For £1,000 of medical insurance in 2026/27 at 25% Corporation Tax and higher-rate personal tax, the company route is £1,000 + £150 NI + £400 Income Tax - £287.50 Corporation Tax relief = £1,262.50 net cost. Buying personally needs a £1,556.42 gross dividend, including £556.42 dividend tax. The company route saves £293.92 under these assumptions.
Fixed-rate planning estimate for England, Wales and Northern Ireland, assuming used allowances, fully deductible employer costs equal to taxable value and personal purchase price, and no employee contributions, exemptions, salary sacrifice or tax-band crossings. Cars, school fees, reimbursements and Scottish Income Tax are excluded. For vehicle benefits, use our Company Car BIK Calculator.
Compare the combined company-and-owner cost with paying personally from dividends, rather than assuming a company policy is tax-free. Company-paid cover normally creates personal benefit tax and employer Class 1A NI, with Corporation Tax relief only where the costs qualify and the relief is usable.
No: your Income Tax band, dividend tax rate and usable Corporation Tax relief can change which route costs less. The comparison assumes the employer cost, taxable benefit value and personal purchase price are the same, which may not match actual insurance quotes.
The director normally pays Income Tax on the taxable benefit, while the company pays Class 1A NI at 15% in both supported years. No employee NI is modelled for these supported employer-contracted benefits; reimbursements and salary sacrifice can have different rules.
Personal benefit tax may be collected through payroll, your PAYE tax code or Self Assessment. This comparison assumes you pay it from existing personal cash, while the personal-purchase route uses dividends from existing post-Corporation-Tax distributable funds.
Qualifying benefit costs and related employer NI may reduce the company’s taxable profit, subject to deductibility and usable relief. Relief is not necessarily an immediate cash refund, particularly for a loss-making company, and is deducted only once in this comparison.
The comparison can cover employer-contracted dental insurance, health cash plans and gym memberships where cost, taxable value and personal price match and Class 1A NI and deductibility apply. It excludes exemptions, contributions, reimbursements, salary sacrifice and cars, and uses fixed marginal rates without allowances, band crossings or Personal Allowance taper for England, Wales and Northern Ireland.