How to tell HMRC about your company car.

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You’ll pay tax if you or your family use a company car privately, including for commuting.

You pay tax on the value to you of the company car, which depends on things like how much it would cost to buy and the type of fuel it uses.

This value of the car is reduced if:

  • you have it part-time
  • you pay something towards its cost
  • it has low CO2 emissions

If your employer pays for fuel you use for personal journeys, you’ll pay tax on this separately.

If you need to pay tax on your company car, you can use HMRC’s online service to:

  • check your company car’s details
  • tell HMRC about any changes to your car since 6 April
  • update your fuel benefit, if your employer pays for fuel

You’ll need:

  • the car’s list price (including VAT and accessories) – you can get this from the manufacturer or your employer
  • CO2 emissions information
  • your National Insurance number the first time you sign in

You can do this here. You will need a HMRC online user id and password

When you can’t use this service

You can’t use the company car tax service if:

  • you’re part of a car averaging or car sharing scheme
  • your employer is managing benefits and expenses through the company payroll (known as ‘payrolling’)

Contact HMRC or your employer to update your company car details if you can’t do it online.

Personal tax account

Signing in to the company car tax service activates your personal tax account. You can use this to check your HMRC records and manage your other details.

Check your tax code

Updating your company car details may change your tax code. Check or update this using your personal tax account.

If you would like any further information then please contacts us, 0116 2423400 or info@torrwaterfield.co.uk

Becky Edwards, Payroll Manager 

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