Detailed guide: Sending car data to HMRC: payrolling car benefit and car fuel benefit

Updated: Guidance on payrolling car fuel benefits for employees has been added.

Overview

Employers registered to payroll employees taxable benefits and expenses must send the taxable amounts to HM Revenue and Customs (HMRC), using a Full Payment Submission (FPS).

From 6 April 2017 registered employers can also voluntarily send HMRC information about the cars employees use. This is similar to sending information on form P46 (Car) by employers who don’t do payrolling.

From 6 April 2018, this information will be mandatory if you’re an employer registered to use the payrolling service where a car and car fuel are made available to an employee.

Employers who aren’t registered to payroll employees taxable benefits and expenses by 6 April must continue to complete form P46 (Car).

Find out what information to send

The list below shows what information is needed (if your payroll software is compatible):

  • make and model of car
  • carbon dioxide (CO2) emissions
  • fuel type
  • car identifier
  • calculated price
  • date car available from
  • date car available to
  • cash equivalent or relevant amount
  • date free fuel provided
  • cash equivalent or the earnings foregone for fuel
  • date free fuel withdrawn
  • amendment indicator

Completing the fields

The headings below show you what information to submit in the first FPS that includes payrolled tax.

Make and model of car

Enter the make and model of the car provided.

CO2 emissions

Enter the approved CO2 emissions figure shown on the Vehicle registration certificate (V5C). The CO2 value doesn’t apply to:

  • cars first registered before 1998
  • some rare car models imported from overseas

For these cars enter ‘X’ in this field.

Fuel type

Select either ‘D’ for diesel cars or ‘A’ for all other cars.

Car identifier

This field helps you identify which car you’ve allocated to an employee, for example where the same models are provided. We recommend you record the car registration number.

Calculated price

Enter the calculated price. The calculated price is the list price of the car added to the price of any accessories. Then subtract any capital contribution paid by the employee. Payments for private use or amounts ‘made good’ aren’t taken into account in this calculation.

Date car available from

Enter the date the car was first made available on the next FPS that the employee is paid. You should enter 6 April in the first FPS if the car was available from that date.

If a car is made available after sending the last FPS for a tax year. You should use the first FPS of the new tax year and the ‘available from’ date should be completed with a date of 6 April.

To get the tax payable for the period of availability in the previous tax year you should recalculate the taxable amount and the tax due. Then send these with any amendment to taxable pay in an FPS or an Earlier Year Update (EYU).

Date car available to

Enter the last date that the car is made available. You can’t record a date later than 5 April in an FPS for the same tax year.

If a car is no longer made available after sending the last FPS for a tax year, there is no need to send an amended FPS for car data in the next tax year. An ‘available to’ date before 6 April would be rejected.

A month 1 FPS can’t be sent as an amendment for car data with 31 March. For example, if the last pay day is 20 March and the car was made unavailable at 31 March.

Payrolling taxable amounts must be amended for the last FPS in a tax year or included in an EYU to show the revised taxable amount. This is because the employee will have paid the wrong amount of tax based on the availability of the car to 31 March.

Cash equivalent or relevant amount

Enter the expected cash equivalent or the relevant amount when sending information for the first time in an FPS.

The relevant amount is the taxable figure where an employee gives up the right to salary to get a benefit instead, such as a company car.

Date free fuel provided

Enter a date of 6 April if free fuel is provided from the start of the tax year, otherwise enter a date during the tax year where you’ve agreed to provide free fuel.

Cash equivalent or earnings foregone for fuel

Enter the expected cash equivalent or amount of earnings foregone for fuel made available to an employee.

The amount foregone is the amount of earnings given up to get car fuel benefit instead.

Date free fuel withdrawn

Enter the date free fuel was withdrawn. If free fuel was withdrawn at the end of the previous tax year but isn’t provided in the new tax year, don’t complete this field.

Amendments and corrections

The headings below show how to correct or amend a submission.

Amendment indicator

This should be marked as a ‘yes’ if a correction is needed during the tax year for the following fields:

  • make and model of car
  • CO2 emissions
  • fuel type
  • car identifier
  • calculated price
  • date car available from
  • date car available to
  • cash equivalent or relevant amount
  • date free fuel provided
  • cash equivalent or the earnings foregone for fuel
  • date free fuel withdrawn

Then enter the revised details for one or more of the above fields on the next FPS in the tax year. If you only need to submit a change to car data but not pay and tax details you should:

  • leave the pay in period fields blank
  • include the latest year to date pay and tax details

If no payment of income is made in the next pay period, you only need to report the change of car data. For example, if the employee is paid irregularly.

If the wrong car data is discovered after you send the last FPS, you should send the correct details in the first FPS in the new tax year, if the car is still made available. The amendment indicator should not be used.

Corrections

Corrections to car data information should only be entered on the next FPS within the tax year. You can’t report car data amendments on an EYU.

Make and model of car

If you’ve entered the wrong description, send the correct information on your next FPS.

CO2

If you’ve entered the wrong CO2 figure you should select ‘yes’ in the amendment indicator and send the correct CO2 figure in your next FPS.

If you discover the wrong CO2 figure after the end of the tax year, make sure the first FPS for the new tax year shows the correct figure if the car is still payrolled.

Fuel type

If you’ve submitted the wrong fuel type letter, send the correct one in your next FPS and select ‘yes’ in the amendment indicator. If you’ve discovered the fuel type is wrong after the end of the tax year, make sure the first FPS for the new tax year shows the correct type if the car is still payrolled.

Car identifier

If you’ve realised an entry is wrong, submit the correct details in your next FPS and select ‘yes’ in the amendment indicator.

Calculated price

If the calculated price is wrong, select ‘yes’ in the amendment indicator and include the new price in the next FPS.

Date car available from

If the ‘available from’ date is wrong, select ‘yes’ in the amendment indicator and include the new date in the next FPS.

Date car available to

Where this date is later found to be wrong, select ‘yes’ in the amendment indicator and include the new date in the next FPS before the end of the tax year.

Cash equivalent or relevant amount

If the availability of a car ends or the cash equivalent or relevant amount is wrong, the cash equivalent or relevant amount should be changed in the next FPS and notified as an amendment.

Date free fuel provided

If the date reported is wrong an amendment should be sent and a revised date entered. If free fuel is withdrawn, that isn’t an amendment. You should complete the ‘date free fuel withdrawn’ field.

Cash equivalent or earnings foregone for fuel

This field should be amended if the cash equivalent or earnings foregone for the fuel are wrong, or the availability of fuel changes.

Date free fuel withdrawn

If the date you entered in a previous FPS in the same tax year was wrong, send the correction as an amendment.

Source: HMRC

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