Open topic with navigation

Recording company car details

Read the full guide	Open the FAQ section	Sage Cover Extra webinars

If you provide an employee with the use of a company car and pay for the fuel, you must calculate Class 1A national insurance contributions (NICs) for them. To automatically calculate the Class 1A NICs due to HMRC, you can record this information in Sage 50 Payroll.

Note: Class 1A NICs for cars and fuel aren't payable through Sage 50 Payroll, but you can use the information to complete forms P11D, P9D and P11D(b).

You should also complete the P46(Car) declaration if there are any company car benefit changes for an employee earning £8,500 a year or more, or for a director who uses the car for their own private use. You can use Sage 50 Payroll to submit this information to HMRC.

Tip: You'll need specific information to hand when recording details about company cars. For example, the registration, the date it was first registered, the engine size and CO2 emissions figure.

To record company car details

1. Select the required employee > Employee > Employee Record > Cars/Fuel > New Car > complete as required > Finish.

   Company car and fuel information

    

   Option name	Description
   Car Registration	The number plate of the company car. Once you enter this it can't be changed. If the information isn't correct > Remove Car > re-enter the details. If the employee has another company car available to them, use the drop-down list to choose the car required > OK.
   Make and Model	The make and model of the car as detailed on the Vehicle Registration Certificate (V5C).
   Engine Capacity	The engine capacity of the car, this is important because: If you select the No Approved CO2 Emissions check box, the engine capacity is used in the calculation of the Standard Charge of a company car. If you select the Fuel Provided check box, the engine capacity determines the Car Fuel Scale Charge applied to the fuel benefit.
   Classic Car Value	Enter the value of the car if: It's more than 15 years old It has a classic value of £15,000 or more, and Its current market value is greater than its original list price
   List Price Inc Std Accs	The manufacturer's original list price of the car plus the cost of any standard accessories, inclusive of VAT. This value, plus the cost of non-standard accessories, less any capital contribution, is capped at £80,000 when calculating the company car Standard Charge.
   Non-Std Accessories	The value of any accessories added to the car after it was purchased. Accessories of less than £100 are ignored. Don't enter accessories added to classic cars. This value, plus the car's original list price, less any capital contribution, is capped at £80,000 when calculating the company car Standard Charge.
   Capital Contribution	The amount of contribution made by the employee to the cost of providing the car or any qualifying non-standard accessory in this or any previous years. This value is deducted from the sum of the list price including standard accessories and any non-standard accessories when calculating the company car Standard Charge. The capital contribution, if greater, is capped at £5,000 for the purpose of calculating the Standard Charge of the company car. Note: In the New Car Wizard, you can enter a sum payable by the employee for private use, per year. If the employee contributes to the private use of the company car, enter the value of the contribution. Payments that an employee makes towards the use of a private car are deducted from the figure obtained after the standard charge has been pro rated for unavailability. Tip: Private usage costs exclude payments for supplies of services, such as petrol or insurance.
   Type of Fuel or Power	The type of fuel or power used by the car. This is important because: It affects the calculation of the Standard Charge of a company car. The type of fuel or power determines the percentage applied to the net cost of the car. It must be recorded on Form P46(Car), which you submit to HMRC.
   Date First Registered	This date is used to determine if the vehicle is a classic car, and is recorded on Form P46(Car). Also, if the company car was registered before 1 January 1998, the Standard Charge calculates using the engine size instead of the CO2 Emissions.
   Date First Used	The date the employee first used the car. The date is recorded on Form P46(Car).
   Date Last Used	The date the employee last used the car. The date is recorded on Form P46(Car).
   Business Mileage	If required, enter the business mileage for the previous tax year. Class 1A NICs are calculated a year in arrears. This information is for reference purposes only.
   CO2 Emissions	You can get this information from the Vehicle Registration Certificate (V5C). This affects the calculation of the Standard Charge for the car and its fuel.
   No Approved CO2 Emissions	If the car was registered before 1 January 1998, is a one off model or a privately imported car from outside the EC, and it doesn't have an approved CO2 emissions figure, select this check box. If this check box is selected, the Standard Charge is calculated using the car's engine size.
   Fuel Provided	If you're paying for the car's fuel while it's being used by the employee, select this check box. This will determine whether a Standard Charge occurs, and means the employer should pay Class 1A NICs to HMRC. To see the amount of Class 1A NICs due > Class 1A NIC.
   Date Fuel Withdrawn	If you stop paying for the fuel, enter the appropriate date in the box.
   Fuel Reinstated	If you start paying for the fuel again, select this check box.

2. To keep a record of each business journey the employee makes using the car, including the number of miles travelled > Enter Mileage > enter the appropriate details > OK.

3. To view details of your liability > Class 1A NIC > the amount of Class 1A NICs due to HMRC appear in the Total box > OK.

4. To produce a P46 (Car) form to submit to HMRC > P46 (Car) > select the P46(Car) Required check box.

5. Select the statements that reflect the employee's circumstances, specify how often the employee contributes to the private use of the car and if they've paid for the fuel used.

   Tip: You must provide the P46(Car) details to HMRC within 28 days of the end of the quarter in which a change takes place.

6. To save your changes > OK > Save > Close.

You can set up your software to submit the P46(Car) details to HMRC electronically using the secure mailbox. Find out more.

To report benefit and expense details to HMRC

To help you keep up to date with current legislation, you can use Sage 50 P11D to record details of taxable benefits provided to your employees, such as company cars, business travel, long service awards and medical insurance. The software calculates any Class 1A NICs due and helps you provide accurate information about all your benefits and expenses to HMRC each year.

Find out more about Sage 50 P11D from the Sage Store.

If you have any feedback about this topic, we'd love to hear from you.

If you have Sage Cover and you have a general support query, you can get in touch at https://my.sage.co.uk/contact-us/

If you don't have Sage Cover, you can find out more about it here.