Company car users can now update their details online

10 November 2015

Instead of phoning or writing to HMRC, if you have any company car users, they can now update their details online by using the Check or update your company car tax service.

Making these changes online mean that your employees no longer have to wait for HMRC to update their tax code. By encouraging your employees to use this digital service you should get fewer enquiries as an employer since the changes are made in real time.

Your employees can use the new digital car service to:

  • Amend their company car benefits or change their car fuel details, for example if they change their company car
  • Remove a company car benefit if they no longer have access to a company car
  • Add a company car benefit if they start getting a company car for the first time.

The digital service isn’t available to employees who are part of a car averaging or car sharing scheme, or who have their company benefits and expenses taxed through the company payroll (known as “payrolling”).

Your employees must verify their identity to use this service for the first time. They will need:

  • a valid UK passport and/or UK photocard driving licence
  • access to their financial information.

The Check or update your company car tax service is now part of the new Personal Tax Account, which is currently being tested with customers. These secure digital tax accounts for individual customers will bring together each customer’s details in one place, like an online bank account. Employees will be able to check their tax codes online and how they have been calculated. This will help reduce the burden on employers.

This new service was introduced in July 2015 and we’ll be adding more services to it and aim to make it available to more customers by the end of this year. By 2020 everyone in the UK will have a Personal Tax Account.

This information was published in HMRC Employer Bulletin 56.