New reporting process for cars

A new P46 car (online and paper version)  should be used from 6 April 2020.

If after 5 April 2020 an employee’s company car is changed or they have use of one for the first time, and it’s a zero or low emissions car, you’ll need to notify HMRC in the new box added to the P46 car. If it’s a hybrid with CO2 emission of between 1g/km and 50g/km you must enter the vehicle’s zero emission mileage, i.e. the maximum distance it can be driven in electric mode without recharging. If you payroll your company car benefits, there will be a new filed on the PAYE fill payment submission in which to enter the mileage details.

If you are leasing a hybrid vehicle, the leasing firm is required to provide you with the mileage information, If you own the vehicle, the zero emission mileage figure can be found on its ‘certificate of conformity’. If this isn’t available you can obtain the figure from the manufacturer.

If you have an existing company car user/s then you are not required to notify HMRC about employees who currently use electric or hybrid cars and continue with the same vehicle after 5 April 2020. However, it would be helpful if you notified the employees that their tax bill might be reduced and that they should contact HMRC as soon as possible to check if their code number needs to be amended.