You need to tell HM Revenue and Customs (HMRC) if you provide company cars to your employees by filling in form P46 (Car). If you can’t do this through your payroll software, use the HMRC PAYE Online service.
Start now on the HMRC website
Before you start
To send form P46 (Car), you can:
- use HMRC’s PAYE Online service for employers
- use your payroll software
- use HMRC’s Basic PAYE Tools
- fill it in online and send a printed copy to the address on the form (you can’t use this to tell HMRC about replacement cars)
You need to tell HMRC if you provide any cars for private use by company directors or employees earning at a rate of £8,500 or more including expenses and benefits.
‘Private use’ includes employees’ journeys between home and work, unless they’re travelling to a temporary place of work.
You’ll also need to report on your end-of-year forms and pay Class 1A National Insurance on the value of the car benefit.
If you replace a company car, you can tell HMRC straight away by submitting the new details online. Otherwise, you’ll have to report the change on your end-of-year forms.
Other reporting requirements
You also need to tell HMRC if:
- you stop providing a company car
- you provide someone with an additional car, available for private use
- someone you provide a car starts earning at a rate of £8,500 or more
You don’t need to tell HMRC if you provide:
- ‘pool’ cars, which are used by more than one employee for business purposes, and normally kept on your premises
- cars adapted for use by employees with a disability, if the only private use is for journeys between home and work
- emergency vehicles used only by on-call employees of the police, fire and rescue, ambulance or paramedic services
When you need to tell HMRC
There are different deadlines for sending in form P46 (Car), depending on when the change to company cars you provide happens.
|When the change takes place||When you need to tell HMRC by|
|6 January to 5 April||5 April (electronic form)|
|6 January to 5 April||3 May (paper form)|
|6 April to 5 July||2 August|
|6 July to 5 October||2 November|
|6 October to 5 January||2 February|