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 elements such as Fuel type, CC, CO2 emissions (and Electric Mileage Range where applicable), 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.
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)
A car is provided for the first time on the FIRST DAY OF THE TAX YEAR (06/04/20xx)
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)
Editing Car Records
The saved record can be edited in two ways:-
- The car "Asset" details record (make, model, value, CO2 etc.) or
- 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
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.
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.
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 - "B"+"I"). 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" and "H" 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
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).
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.
For tax years 2019 to 2020 onwards, the total amount foregone (including for connected benefits) should be compared to the modified cash equivalent of the car to establish the relevant amount to treat as earnings.
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
No approved CO2The 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 :- Paragraph 12.28 (Section 140) of Booklet 480
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, when the information is provided by a fleet system that has different information.