Adding a car record

Benefit and expenses records are assigned to the selected employee record within the system. The software will require a certain amount of information in order to calculate a benefit in kind value. The information required to be entered is particular to each section of the P11D.  


Car details record


STEP 1 - Select the employee record to that you wish to assign the benefit to (further information on finding an employee can be found here)


STEP 2 - Select benefit section “Section F” from the drop-down benefit selector – or click on the “Section F” icon at the top of the screen.


STEP 3 - Click the ADD button. 




STEP 4 - Select a “Type of car” to use (Default “Cars and car fuel - Main company car”) and click OK



Enter the details of the car including Fuel type, CC, CO2 emissions, and List Price - Click Save to save the "car details" and move on to the car allocations/calculation step.




Car allocation record

Enter the details of the benefit in order to allow the system to correctly calculate the benefit in kind value. The factors that influence the car benefit bik value are accessible:-


Price - including the value of Accessories subsequently added after the car was made available to the employee.



Capital contributions - lump sum paid by the employee as capital contributions towards the cost of the car or accessories.



Payments made for Private Use of the Car can also be entered. 

The dates that the car was available FROM and TO are also required. The "Yes" default is set to all of the Tax year, any changes to this should be keyed into the appropriate fields.  
The system also caters for "Any other days unavailable (30 days or more)" whereby the system will reduce the BIK value as appropriate.   




Fuel benefit charges for the provision of fuel for Private motoring are set with Yes / No settings. For example, the setting of "Yes" (fuel provided) & "NO" (employee pays for private fuel) would apply a fuel benefit charge to the employee.  




P46 (car) Settings

The amount paid, and the frequency of any private use payments can entered to cater for HMRC’s P46 (car) reporting requirements.



Reason for P46 (car)

This screen is also used to make manual settings for P46 (car) reporting in the UNUSUAL EVENT that:-
A car (or fuel for private use) is actually withdrawn on the LAST DAY OF THE TAX YEAR (05/04/2019) or
A car is provided for the first time on the FIRST DAY OF THE TAX YEAR (06/04/2018)

In all other instances, the setting for "Reason for P46 (car)" should be left unchanged as the default of “Auto generate P46 (car) when required” otherwise the online P46 FBI process may not accurately report all the required P46 (car) changes correctly.


Payments made for private use of the car

As part of the P46 (car) submission, the software will inform HMRC of the amount and frequency of private use contributions expected to be made by the employee in relation to the car allocation. 


Expected contribution made for private use of the car

Enter the amount of money paid by the employee specifically for the private use of the car 


Frequency of contributions made for private use of the car

Using the drop-down selection, set the frequency that the payment is going to be made (weekly, monthly, quarterly. annually) 



Having entered all the relevant data on the click the SAVE button to save both the car details & car allocation records.



Editing Car Records 

The saved record can be edited in two ways:-

  1. The car "Asset" details record (make, model, value, CO2 etc.) or
  2. The car "allocation" record (dates of availability, employee contributions, etc.)




The car details record can edited by editing the record and using the "Modify Asset" button 



Changes and corrections can then be made to any of the car details fields e.g. correcting a value for the list price of the car. Having entered all the relevant data, click the SAVE button to save the car details record.

Editing Car Allocation Record

The car allocation record can be edited using the EDIT button. 


This will then allow you to make any necessary changes to the record using any of the data entry fields e.g. make a correction to the dates that the car was available FROM and/or TO etc.

Additional information can be edited such as Accessories, Capital contributions, Private use payments and fuel benefit settings.  Having entered this information click the OK button to save the car record.



Show calculations & Optional Remuneration Arrangements (OpRA) 

The P11D Organiser has been updated to accommodate the new Optional Remuneration Arrangements (OpRA) legislation 


The 2018 version of the software accommodates the changes brought about by the new Optional Remuneration Arrangements (OpRA) - To enable this particular functionality you will need to edit the properties of the Section F - Company car benefit category to "switch on" this new feature.


To enable:-

1. From the Employer details screen, click the "Benefit Profile" icon 


2. Select Section F - Cars and Car Fuel - Main company car & click the EDIT button



3.  Select "YES" to the Optional Remuneration Arrangement & click OK to save the setting 


Confirm "Yes" to the resulting dialogue box 




The Company Car calculations have been further extended to accommodate the new Optional Remuneration Arrangements (OpRA) legislation 



As an example, the record above shows a "Annual Cash Foregone for Car" value of £13,800 (£7800 Car & £6000 fuel). This value is used to compare against the Modified Cash Equivalent (similar to the traditional BIK method of calculation for the company car) which derived an annual value of £13,350 for this particular record - see element "C" in the graphic below.



Taking into account a value of £13,800 for "Cash Foregone"  screenshot 1 below demonstrate a Taxable value of £13,800 for a record where a £13,800 cash forgone is being used    


Screenshot 1 


and screenshot 2 below demonstrates a traditional BIK value of £13350.00 for the same car record where there has been no value for "cash foregone" to be taken into account (traditional P11D Car record).


Screenshot 2

  



Using the "Show calculations" button will toggle the display of the system's method used to calculate the Taxable BIK value for the company car and fuel benefit. 


Further information on the amount to be placed as the annual cash forgone after any reduction permissible under "Connected Benefits" can be found in HMRC's Employment Income Manual EIM44105 and Sections 120A and 120B ITEPA 2003




Deleting Car Records

Individual car benefit records can be easily deleted using the delete button on the benefit record screen.
To delete a car record...

STEP 1 - Select (left mouse click) the record to be deleted 

STEP 2 - Click the Delete button

STEP 3 - Confirm YES to the pop-up dialogue box




 
Private Registration numbers / Cherished number plates
The software uses the car registration number to uniquely identify a car record, therefore where a car record is created using a private number plate any subsequent replacement cars are also being given the same registration number and the unique identity of the particular car is therefore lost. The HMRC do not actually record or use the car's registration number so there are 2 ways of dealing with this issue within the P11D Organiser system...

Option 1
Make the registration number unique by adding a number or other character to the registration number e.g. RR01 used originally, and the replacement car was added using RR01(2) 

Original car


Replacement car


Option 2
Use the Auto generate setting for the car instead of a Registration number. This is a system generated unique identifier for a car in place of the actual car's registration plate number and is used to uniquely identify the car record within the P11D Organiser system.  






Protect car data 

The software provides an option to protect/lock the car details record from being overwritten during any subsequent imports of car details data. This feature was introduced for a particular client and is not used by the majority of customers.  


No approved CO2

The software provides functionality to deal with car records that have no approved CO2 value (classic cars, grey import cars etc.) - See section 140 of this guide :- Section 140 of Booklet 480