Benefits in kind provided to team members and directors must be reported to HMRC on a form P11d by 06 July each year. If a company car is provided but “unavailable” for private use for 30 or more consecutive days, the company car benefit can be proportionately reduced.
In order for a company car to be classed as “unavailable”, the keys or fob must have been returned to the employer or leasing/disposal company (as instructed by the employer) for 30 or more consecutive days. In this case, the car benefit can be proportionately reduced.
Many team members and directors had company cars sitting on their driveways during Coronavirus lockdowns. Unfortunately, this does not count as “unavailable” and the benefit in kind must be reported in full.
For company cars provided with zero CO2 emissions, no taxable benefit in kind is required for 2020/21. However, this will increase to 1% of the original list price for the current 2021/22 tax year.
Remember: There are lots of benefits in kind that should be reported to HMRC via form P11d. These include:-
- Company cars available for private use
- Company vans used privately by team members
- Loans to team members (if they exceed £10,00 at any time)
- Health insurance premiums
- Dental insurance premiums
- Excessive subsistence payments
- Home telephone expenses paid
- Any payments made on behalf of team members which are not subsequently taxed through the PAYE system
- Team members’ use of company assets; for example, equipment, land, holiday apartments and timeshares
For further guidance and support with your company’s form P11d, benefits in kind, please call the team on 01733 371180.