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HMRC internal manual

PAYE Manual

P11d processing: tax on expenses and benefits through payroll: C car and fuel benefit.

From April 2018 all employers payrolling car and fuel benefits must provide the car details on their FPS submissions. This is to enable HM Treasury to monitor company car and fuel trends for future policy decisions.

Employers must still enter the taxable amount of car and fuel benefits as part of the payrolling process.

This process is voluntary for 2017/18.

The employer must include the following information on the FPS

  • Make and Model of car
  • Amendment indicator
  • CO2 emissions
  • Fuel type
  • First date Fuel available (in related tax year)
  • Last date Fuel available (in related tax year)
  • Calculated price
  • Cash equivalent of car (in related tax year)
  • Cash equivalent of fuel (in related tax year)
  • First date car available (in related tax year)
  • Last date car available (in related tax year)
  • Car identifier (for example the registration number. This is to identify different cars)

If the car information is the same as the previous submission the Car Amendment Flag should be set to Y. For a new car the flag should not be set to Y.

If the car is incorrectly reported it will have no impact on the tax code. Any errors should be correct on the next FPS. The employer doesn’t need to send in an FPS between payment dates.

If the employer doesn’t want to sent this information in or their software will not allow them to do so, they will have to follow the existing P46(car) and P11D process. If they have already registered to payroll car and fuel benefits they will need to de-register on or before 5 April 2018. Other benefits in kind can still be payrolled.