Tax - Form P46(Car)
Employers must complete form P46(Car) for each employee for whom form P11D is appropriate if any of the following take place:
- the employee is first provided with a car to which car benefit applies
- one car that attracts car benefit is replaced by another
- the employee is provided with a second car to which car benefit also applies
- a car that attracts car benefit is withdrawn and is not replaced
- an employee becomes an employee for whom form P11D is appropriate instead of one for whom form P9D is appropriate, so that car benefit begins to apply to a car already provided to that employee.
The completed form P46(Car) must be sent to the Inland Revenue office within 14 days from the end of the quarter to 5 July, 5 October, 5 January or 5 April in which any of the above events has taken place.
Form P46(Car) can be downloaded from the Inland Revenue website, or can be obtained from the Orderline.
Follow this link for guidance where the car changes frequently.
Class 1A NICs
Class 1A NICs are due on car benefits and car fuel benefits. Employers are usually liable to pay Class 1A NICs, there is no employee contribution. For car benefits provided by a third party look at NIM16350.
Class 1A NICs are worked out in one calculation using the total cash equivalent figure of all benefits liable for Class 1A NICs. The rules for working out the cash equivalent of a benefit, including a car benefit, are the same for both tax and Class 1A NICs.
Once employers have worked out the cash equivalent for each benefit they provide, which includes the cash equivalent of the car benefit, the employer should:
- add together each cash equivalent figure recorded on individual P11D forms to get a single figure and
- multiply that figure by the Class 1A NICs percentage rate.
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