Advising HMRC of employees’ company car details

Posted on 1st January 2025 by Streets - Employee Benefits

Ensure compliance with HMRC rules when providing company cars. From P46(Car) submissions to benefit reporting, learn what steps to take for private use and specific exemptions.

Here are the steps you need to follow to inform HMRC if you make any cars available for private use by company directors or employees. Private use of a car includes employees’ journeys between home and work, unless they are traveling to a temporary work location.

You must submit a P46 (Car) form to HMRC if you:

Provide company cars to employees
Stop providing a company car
Provide an additional car to someone

You can submit the form in the following ways:

Complete it online and send a printed copy to the address listed on the form.
Use HMRC’s PAYE Online service for employers.
Use your payroll software.

Additionally, you must report the car benefit on your end-of-year forms and pay Class 1A National Insurance on its value. You must also notify HMRC if a company car is replaced.

You do not need to notify HMRC if you provide:

'Pool' cars, which are used by multiple employees for business purposes and usually kept on your premises.
Cars adapted for employees with disabilities, if the only private use is for commuting.
Emergency vehicles used exclusively by on-call employees in police, fire and rescue, ambulance, or paramedic services.

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