Collecting information about car and car fuel benefit via PAYE reporting

15 December 2016

The December 2016 Employer Bulletin, Issue 63 includes the following article regarding the collecting of information about car and fuel benefit via PAYE reporting:

"From April 2016, employers have been able to register to payroll car and car fuel benefits, meaning that the tax on the benefit is paid by the employee through their PAYE code in year and accounted for in real time by the employer.

Those employers who payroll car and fuel benefits are not required to report information about these benefits on forms P46 (Car) and P11D. We have indicated that we are developing alternative reporting mechanisms which we are planning to introduce from April 2018. From that date these employers will be required to report information about car and fuel benefits in their Full Payment Submission (FPS).

The introduction of the new requirements in April 2018 should allow employers the time they need to update their payroll systems and understand the new process to report the car data. In order to ensure a smooth transition to the new reporting requirements, employers can report the car data through their FPS from April 2017 if their payroll software facilitates this.

The reporting of car data for the tax year beginning 6 April 2017 is an entirely voluntary option and not a new requirement at this time. Voluntary reporting of the data will allow us to identify and resolve any issues with employers before the introduction of a mandatory reporting requirement.

Further information about reporting information on car and fuel benefits will be included in future Employer Bulletins and we will provide links to new guidance to support employers and their representatives who choose to report the information from 6 April 2017."