When dealing with car usage, employers have the ability to report a period of ‘unavailability’ of a car that is allocated to an employee. However, caution needs to be applied when considering the use of this option, as HMRC has some strict guidelines for the term unavailable, which say that a car can be defined as unavailable in three main ways:
This year’s budgetary changes that will affect P11D reporting for 2012/13 onwards.
The cash equivalent for company cars that is declared on the P11D form is based on many factors, the prime one being the price for tax purposes. This price was capped at £80,000 in years prior to 2011/12.
Drivers of a low emissions company car could face tax increases of up to 60% as HMRC removes flat charge on low emission cars.
From 6th April 2011 HMRC have introduced a new fuel type A. This encompasses the existing fuel types of petrol, hybrid, bi-fuel, bioethanol & converted bi-fuels.
HMRC have recently issued a consultation document on PAYE Pooling.