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Notify HMRC of an Employee's Company Car

There are several ways for employers to tell HM Revenue and Customs about the car benefits they provide to an employee or company director.

This guide explains how to inform HMRC online or use postal form P46(Car) that you are providing company cars to your employees.

Cars Provided for Private Use by Employees

Does your company allow the private use of a car by an employee or director? If so, this guide explains what you need to report.

HM Revenue and Customs need to know if you have provided, replaced, or withdrawn a car for an employee's private use.

The journeys employees make between home and work is also classed as 'private use' (unless travelling to a temporary place of work).

Note: A guide explaining how to tell HMRC you have provided or withdrawn a car for an employee's private use is also available in Welsh language (Cymraeg).

The P46 (Car) form is a document used for notifying HM Revenue and Customs (HMRC) that an employer is:

There are several ways to send the (P46(Car)) form, including:

In some cases, you also need to pay Class 1A National Insurance on the value of the car benefit. The section on expenses and benefits contains more information about what to report on end-of-year forms.

Replacing a Car for Employee Private Use

HMRC also need to know if you replace any of your company cars. You can notify them using the PAYE Online service, your payroll software, or your end-of-year forms.

Important: The process differs for employees who need to tell HMRC about changes to their PAYE company car or fuel benefit details (details below).

Deadline Dates

The date that you change or stop providing the benefits of a company car determines the deadlines of when you need to tell HMRC.

Exceptions for Telling HMRC

There is no need to send a report about an employee's company car if the vehicles that you provide are (any):

How to Check or Update Company Car Tax

The online service is for employees who need to pay tax on company benefits (e.g. cars, accommodation, loans). You can use it to:

  • Check the details of your company car.
  • Inform HM Revenue and Customs about changes made to your car since the 6th of April.
  • Update the fuel benefit (if your employer pays for it).

You will need to know the list price of the car (including VAT and accessories) as well as:

  • CO2 emissions information (you may need to get vehicle information from DVLA beforehand).
  • The electric range (zero emission mileage figure) for hybrids with a CO2 emission figure of 1 to 50g/km.
  • Whether a diesel car meets Euro 6d standard (your employer should have this information).

Note: Information on checking or updating your company car tax is also available in Welsh language (Cymraeg) via the GOV.UK website.

Tell HMRC about a Car Provided to an Employee for Private Use