Reporting company car changes
There is a requirement to notify HMRC if you make any company cars available for private use by company directors or employees. The definition of ‘Private use’ includes employees’ journeys between home and work unless they are travelling to a temporary place of work.
HMRC’s guidance states that you need to send a P46 (Car) form to HMRC if you:
- provide company cars to your employees
- stop providing a company car
- provide someone with an additional car
To send the form you can:
- fill it in online and send a printed copy to the address on the form
- use HMRC’s PAYE Online service for employers
- use your payroll software
You will also need to report on your end-of-year forms and pay Class 1A National Insurance on the value of the car benefit. The company will be liable to pay Class 1A NICs in respect of the provision of a company car based on the car benefit charges. Employers currently pay Class 1A NICs at the rate of 13.8%. There will also be additional Class 1A NICs due where the company pays for private use of fuel.
Additionally, there is a requirement to notify HMRC if you replace a company car. This can be done using: HMRC’s PAYE Online service for employers, your payroll software or your end-of-year forms.
No Advice
The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.
Information
The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.
Expert insight and news straight
to your inbox
Related Articles
Beneficial tax-exempt loans
An employee can obtain a benefit when provided with an employment-related cheap or interest-free loan. The benefit is the difference between the interest the employee pays, if any, and the commercial rate the employee would have to pay on a loan
New tips guidance published
New rules that stop employers from withholding tips from people working in the hospitality, leisure and services sectors are a step closer following the publication of a new Code of Practice on tipping.
The Employment (Allocation of Tips) Act 2023
Bikes for employees
The Cycle to Work scheme allows employers to provide bicycles and cyclists’ safety equipment to employees as a tax-free benefit. The scheme must be offered to all employees and the bike must be used mainly for qualifying journeys i.e., between home
Share this article