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Change to car benefit reporting on form P46

HM Revenue and Customs (HMRC) has reminded employers that the rules on reporting car benefits change as from 6 April 2009.

From 6 April, employers will no longer be required to complete a form P46 (Car) when one car is replaced with another.

Employers who make cars available to employees and allow those employees to use the cars for private journeys are required to report the car benefit to HMRC and pay Class 1A National Insurance contributions on it.

Employers must complete and file form P46 (Car) when any of the following happens: an employee or director is provided with a first car, available for private use; an employee or director is provided with a second or further car, available for private use; the car provided to an employee or director is changed; an employee who has been provided with a car starts earning at a rate of £8,500 or more per year, or becomes a director; and a car is withdrawn from an employee or director.

As from 6 April, employers will no longer be required to complete a form P46 (Car) when one car is replaced with another, although the form must still be used to report the other changes.