As an employer providing company car & benefits to employees,you have certain obligations to report HMRC.You will need to report:
* Company cars used for private purpose
*Cars adapted for an employee with disability
* Fuel for private journeys
WHAT IS EXEMPT?
To be exempt, your employees must use the car or fuel in one of the following ways:
a) Privately Owned Cars:
You don’t have to pay anything on directors or employees owned cars
Cars available for Business Travel only:
Business travel are either;
*Travel as part of employee’s duty
*Employee travel to temporary workplace
(Tell employees not to use the vehicle for private purposes)
b)Cars adopted for an employee with disability:
It includes automatic transmission cars employee need it and exempt if the private use is;
Travel between home & work or travel to work related training.
You don’t have to report if the employee buy fuel for private use or reimbursed the fuel cost.
You don’t have to pay or report on pool cars as shared by employees for business purposes & kept on employee premises.
Cars provided to Relatives:
You don’t have to pay anything if you are an individual employer or car provided to some one working in your business.Relative includes your spouse/son/dependant.
REPORT TO HMRC:
If the car is not exempt, you must report to HMRC & pay NI on the value of benefit.At the end of the tax year, you will need to report the value & fuel cost:
* Report on form P11D
*Pay Class 1A NI
You must keep the record of employees expenses & benefits & car’s list price.
If you have any question or query, please do not hesitate to contact us.
Info@pyramidpointlimited.co.uk M:07902 130 748