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HM Revenue and Customs need to know if you have provided, replaced, or withdrawn a car for an employee’s private use.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Note: A guide explaining how to tell HMRC you have provided or withdrawn a car for an employee’s private use is also available in Welsh language (Cymraeg).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:
- Providing company cars to an employee (or an additional car).
- No longer (stopped) providing car benefits to an employee or company director.
There are several ways to send the (P46(Car)) form, including:
- Using the HMRC PAYE Online service for employers.
- Filling it in online and then sending a printed version to the address written on the form.
- Using your payroll software.
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).
The date that you change or stop providing the benefits of a company car determines the deadlines of when you need to tell HMRC.
- 6th of January to the 5th of April: Deadline is the 5th of April (electronic) and the 3rd of May (printed form)
- 6th of April to the 5th of July: Deadline is the 2nd of August
- 6th of July to the 5th of October: Deadline is the 2nd of November
- 6th of October to the 5th of January: Deadline is the 2nd of February
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):
- Cars that have been adapted for use by employees with a disability (as long as the private use is solely for journeys taken between home and the workplace).
- ‘Pool’ cars that are most often kept on the premises (e.g. used by more than one employee for business purposes).
- Emergency vehicles used only by on-call employees of the ambulance, fire and rescue, paramedic, or police services.
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.