News added on 12.02.2015

from HMRC LATEST NEWS

Company cars

Company car drivers can now report changes to HMRC online

HMRC has launched a trial allowing company car drivers to make changes to their car and fuel benefits online. What’s the advantage?

Company car changes. When an employee changes a company car, the employer has to complete a P46(Car) to inform HMRC of the change. Employers have 28 days from the end of the quarter to 5 July, 5 October, 5 January or 5 April to return the form to HMRC. So this can lead to quite a delay between the date of change and the date HMRC updates the employee's tax code.

New trial. To speed up the time taken to change tax codes, HMRC is trialling a new online service. This allows employees to tell HMRC directly about changes to their company car that happen from 6 April 2014 to 5 April 2015. Employees can use the service to check their current car details as well as update their car or fuel benefits. To make any changes, the employee will need the car’s list price and CO2 emissions information.

Verify first. Before employees can use the system for the first time, they will need to verify their identity through GOV.UK’s "Verify" system. To do this, they will need their passport or photocard driving licence and access to their bank and credit card details. 

Enabling employees with company cars to update their car details online means that they will no longer have to wait for HMRC to update their tax code as it will be done straightaway.

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