Does Your Business Voluntarily Payroll Company Cars?

For businesses who voluntarily payroll company cars as a Benefit in Kind (BiK), from April 2018 you will have to payroll all your car data. It will be mandatory from this time to submit all of the car data information through your FPS (Full Payment Submission).

This change only applies to businesses who have chosen to voluntarily payroll company cars as a BiK. It does not apply to employers who continue to process and report company cars through a form P11D and P46 (Car).

Payrolling your company cars and other benefits removes the need for reporting this information through a form P11D and allows your employees to pay tax on their benefits in real time, keeping tax code changes to a minimum in the future.

Registering for payrolling of benefits in 2018/19 tax year has to be done before the end of the current tax year (5 April 2018), although we recommend doing it before mid-December so HMRC get the first batch of the next year’s tax codes correct.

Should you require any further information around payrolling of benefits and the positive impact it can have on your business and employees then please don’t hesitate to get in touch with us.