Reporting company cars on form P46 (Car)
If you make a car available to an employee and they can use it for
private journeys, you’ll have to report the car benefit to HM Revenue
& Customs (HMRC) and pay Class 1A National Insurance contributions
(NICs) on it.
The rules for reporting and paying NICs on car benefits are explained
in another guide - this guide deals with form P46 (Car). You must complete
this form when you first provide an employee with a car which is available
for private use, and again when you either provide them with an additional
car or withdraw their car without replacing it.
This guide explains which of your employees form P46 (Car) applies
to. It also outlines the information you’ll need to have to hand when
completing the form, and it tells you when and how to file the form.
On this page:
In what circumstances should a form P46 (Car) be filed?
You must complete and file the form if any of the following occurs:
- you provide an employee or director with a first car, available
for private use
- you provide an employee or director with an additional car, available
for private use
- an employee whom you provide with a car becomes chargeable on benefits,
either because they start earning at a rate of £8,500 or more per
year, or become a director
- you withdraw (and don’t replace) a car provided to an employee
or director
However, from April 2011 you may submit replacement car information,
but this must be submitted online.
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Which employees and which cars does the form apply
to?
The requirement to file form P46 (Car) only applies if you provide
a car that’s available for private use to:
- employees earning at a rate of £8,500 or more per year (including
the value of all expenses and benefits you provide to them)
- directors, irrespective of their earnings
Some company cars are eligible for an exemption from car benefit charges,
so you won’t need to complete form P46 (Car) if you provide them. These
are:
- 'pool’ cars – these are cars used by more than one employee, normally
kept on your business premises, and used entirely for business purposes
(a limited amount of private use is permitted if it is merely incidental
to a business journey)
- cars adapted for use by employees with a disability, if the only
private use is for ordinary commuting
- emergency vehicles used only by on-call employees of the police,
fire, fire and rescue, ambulance or paramedic services
Guidance about the rules on car
benefits
More about what’s included
in the £8,500 threshold
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Information needed to complete the form
You will need the following pieces of information in order to complete
form P46 (Car):
- your Employer’s PAYE reference number
- your employee’s name
- their National Insurance number (or date of birth and gender if
you don’t know their National Insurance number)
- the make and model of the car being provided
- its CO2 emissions figure (or engine size if it has no CO2 emissions
figure) and fuel type
- the date the car was first registered
- the list price of the car and any extras or accessories fitted
to it
- the date you first made the car available to your employee
- any amounts contributed by the employee to the cost of the car
or its extras and accessories
- any amounts you receive from the employee as required payments
for their private use of the car
- details of whether any fuel is provided for private use
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How to complete and file form P46 (Car)
The easiest way to complete and file the form is electronically. You
can use:
- the free 'Online Return and Forms - PAYE' service on the HMRC website,
which lets you complete and file the form over the Internet
- commercial payroll software – you’ll need to check that the program
you use allows you to complete form P46 (Car), and whether it allows
online filing
- 'Fill in forms on Screen' which is part of HMRC’s Basic PAYE Tools
package - this makes it easy to complete the form, but doesn’t allow
online filing
Alternatively, you can complete a paper version of form P46 (Car)
and send or deliver it to HMRC. You can download and print a copy of
the form or order one from HMRC’s Employer Orderline – use the links
below.
More about using HMRC’s
PAYE online service to file your forms online
Go
to form P46 (Car)
Contact HMRC’s Employer Orderline
to order a paper form P46 (Car)
Download Basic
PAYE Tools (Opens new window) from the Business Link website
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Deadline for filing
Make sure HMRC receives your completed form within 28 days of the
end of the quarter in which the car benefit change you’re reporting
took place. The four end-of-quarter dates are:
- 5 July
- 5 October
- 5 January
- 5 April
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More useful links
More about reporting, tax and NICs
requirements for car benefits
Get car CO2 emissions figures on the Business Link website (opens new window)
More about HMRC’s online
services for employers
Use HMRC’s car benefit calculator
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