Q: Do I have to inform HMRC if an employee is using a company vehicle for private use?
Jun 29 2011
Answered by: John Staniforth Ask a question
Yes you do. HM Revenue & Customs should be notified on form P46 (car) when an employer first provides an employee with a car which is available for private use. The employer should also notify HMRC when an additional car is provided or a car ceases to be provided without being replaced. Notification should be made within 28 days of the end of the quarter to 5 July, October, January or April. These forms can now be filed online. This then allows HMRC to make appropriate amendments to the employee’s tax code.
The details of the car and benefit charge should also be included on the end of year form P11D, along with any other benefits and expenses.
There is an exception to this if the employee concerned is not a director and earns at a rate of less than £8,500 per annum (including the value of any benefits or expenses, including the car). The car benefit rules do not apply to these lower paid employees.
There are also different rules if the vehicle provided is a van rather than a car.
Comments