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Ask the expert
31 Aug 2015

I have been tasked with the P11ds and have found several new users and some changes in the year. Looking back, it doesn’t look like anything has been notified to HMRC until now. Should we be notifying them as the changes occur?

If someone starts to receive a car as a benefit, changes their car or stops having the benefit of one, you need to reports this to HMRC via a P46car. You can do this using software, by completing the online form and printing it off or online using your PAYE Online service for Employers. You will need to have all of the details to hand as you can’t save the form partially completed.

Deadlines for informing HMRC of the changes

When the change

takes place

Tell HMRC by

6 January - 5 April

6 October – 5 January

6 January - 5 April

3 May (printed form)

6 April – 5 July

2 August

5 July – 5 October

2 August

6 October – 5 January

2 February

 

Despite the deadlines above, it is better to let HMRC know as soon as possible after the start/change/end, so that the employee does not receives a tax code change several months later as they will already be in arrears at this point. This will impact their pay when the new coding notice is issued. The benefit of a car will impact the employees tax code and impact their tax heavily.

I would also recommend that you send a copy of the form (or a statement containing the car details) to the employee suggesting that they inform HMRC as soon as possible too in order to ensure their tax code is corrected as soon as possible.

The only exceptions to this rule (you don’t need to tell HMRC) are:


• Pool cars, which are used by more than one employee for business purposes and normally kept on your premises.
• Cars adapted for use by employees with a disability (if the only private use if for journeys between home and work).
• Emergency vehicles used only for on-call employees of the police, fire and rescue, ambulance or paramedic services.

Remember to include details of any amounts made good by the employee and fuel card details, if the employee is entitled to fuel for private use as well as business use.

You will still need to report these on the P11d at the end of the year (by the 6th July) and the employer will have to pay Class 1A National Insurance on the value of the benefit calculated. If you have to produce P11ds it is beneficial to complete these early and send them to your employees to check before issuing to HMRC.

 

I have been tasked with the P11ds and have found several new users and some changes in the year. Looking back, it doesn’t look like anything has been notified to HMRC until now. Should we be notifying them as the changes occur?

If someone starts to receive a car as a benefit, changes their car or stops having the benefit of one, you need to reports this to HMRC via a P46car. You can do this using software, by completing the online form and printing it off or online using your PAYE Online service for Employers. You will need to have all of the details to hand as you can’t save the form partially completed.

Deadlines for informing HMRC of the changes

When the change

takes place

Tell HMRC by

6 January - 5 April

6 October – 5 January

6 January - 5 April

3 May (printed form)

6 April – 5 July

2 August

5 July – 5 October

2 August

6 October – 5 January

2 February

 

Despite the deadlines above, it is better to let HMRC know as soon as possible after the start/change/end, so that the employee does not receives a tax code change several months later as they will already be in arrears at this point. This will impact their pay when the new coding notice is issued. The benefit of a car will impact the employees tax code and impact their tax heavily.

I would also recommend that you send a copy of the form (or a statement containing the car details) to the employee suggesting that they inform HMRC as soon as possible too in order to ensure their tax code is corrected as soon as possible.

The only exceptions to this rule (you don’t need to tell HMRC) are:


• Pool cars, which are used by more than one employee for business purposes and normally kept on your premises.
• Cars adapted for use by employees with a disability (if the only private use if for journeys between home and work).
• Emergency vehicles used only for on-call employees of the police, fire and rescue, ambulance or paramedic services.

Remember to include details of any amounts made good by the employee and fuel card details, if the employee is entitled to fuel for private use as well as business use.

You will still need to report these on the P11d at the end of the year (by the 6th July) and the employer will have to pay Class 1A National Insurance on the value of the benefit calculated. If you have to produce P11ds it is beneficial to complete these early and send them to your employees to check before issuing to HMRC.

 

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