With the introduction of Statutory Voluntary Payrolling of Benefits, HMRC have confirmed details required how to report employee or director car benefits to HMRC using the payrolling method. As with all benefits returned through payroll employers need to use the FPS as part of their RTI return showing the taxable amounts related to the car.
From 6 April 2017 you’ll also be able to send HMRC information about the cars your employees use if your payroll software provider has included the items in their development. This method is similar to sending information on form P46 (Car) which is sent by employers who don’t payroll car or car fuel benefit and should still be used if returns are being made using the P11d method.
For tax year 2017 to 2018, the extra information will not be mandatory however it will be part of the regulations from 2018/19 and as such will have to be completed if you are payroll vehicles.
What details you can return
The list below shows what information you can send:
make and model of car CO2 emissions fuel type car identifier calculated price date car available from date car available to cash equivalent date free fuel provided cash equivalent of fuel date free fuel withdrawn amendment indicatorCompleting the fields
The headings below show you what details to include in each field.
Make and model of car
Enter the make and model of the car provided.
CO2 emissions
Enter the approved CO2 emissions figure as shown on the Vehicle registration certificate (V5C). The CO2 value does not apply to cars first registered before 1998. This can also be the same for 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 have allocated to an employee, for instance where 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’ are not 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 new car or another 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 address 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 through as you would 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 cannot 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 requirement to send an amended FPS for car data in the next tax year. An ‘available to’ date prior to 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 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 the 31 March.
Cash equivalent
Enter the expected cash equivalent when sending information for the first time.
Date free fuel provided
Enter a date of 6 April if fuel is provided from the start of the tax year, otherwise enter a date during the tax year where you have agreed to provide free fuel.
Cash equivalent of fuel
Enter the expected cash equivalent of fuel when sending information about a car made available to an employee with fuel.
Date free fuel withdrawn
Enter the date free fuel provision was withdrawn. If free fuel was withdrawn at the end of the previous tax year but is not provided in the new tax year, this field does not require completion.
Amendments and corrections
The headings below show you how to correct or amend a submission.
Amendment indicator
This should be marked as a ‘yes’ if a correction is required 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 date free fuel provided cash equivalent of fuel date free fuel withdrawnYou should then enter the revised details for one or more of the above fields on the next FPS within 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 detailsIn the event where no payment of income is made in the next pay period, you need only report the change of car data. For example, if the employee is paid irregularly.
If incorrect car data is discovered after you send the last FPS, you should send the correct details in the first FPS within the new tax year, if the car is still made available. The amendment indicator should not be used.
Corrections
Amendments to car data should only be entered on the next FPS within the tax year. There is no facility to report car data amendments on an EYU.
Make and model of car If you’ve entered an incorrect description, make an amendment and send the correct information.
CO2
If you enter an incorrect CO2 figure you should ‘check’ the amendment box with a ‘yes’ and send the correct CO2 figure in your next FPS. If you discover an incorrect CO2 figure after the end of the tax year, ensure 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 letter, send the correct one through as an amendment by checking ‘yes’ in your next FPS. If you’ve discovered an incorrect fuel type after the end of the tax year, ensure the first FPS for the new tax year shows the correct type if the car is still payrolled.
Car identifier
If you’ve discovered an incorrect entry, submit the correct details in your next FPS and select ‘yes’ in the amendment indicator.
Calculated price
If the calculated price is incorrect, the amendment indicator should be checked ‘yes’ and the new date included in the next FPS.
Date car available from
If the ‘available from’ date is incorrect, the amendment indicator should be checked ‘yes’ and the new date included in the next FPS.
Date car available to
Where this date is later found to be incorrect, the amendment indicator should be checked ‘yes’ and the new date should be included in the next FPS before the end of the tax year.
Cash equivalent
If the availability of a car ends or the cash equivalent is incorrect, the cash equivalent should be changed in the next FPS and notified as an amendment.
Date free fuel provided
If the date reported is incorrect an amendment should be sent and a revised date entered. If free fuel is withdrawn, that is not an amendment. You should complete the ‘date free fuel withdrawn’ field.
Cash equivalent of fuel
This field will need to be amended if the cash equivalent of fuel is incorrect 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 incorrect, send the correction through as an amendment.
