Title Reporting company car changes

Pub Date 25/01/2024

Category Employee Benefits
Agency
HM Revenue & Customs
Character

Number

Summary

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.

Show Text