We have received some feedback from clients where employees with electric car allocated in the 2020/2021 tax year are receiving tax coding notices that are higher than expected.

After discussions with HMRC, it appears that dropping the fuel type "E" and moving forward with fuel types "A","D" and "F" only has caused some confusion. We have worked with HMRC on this matter, and now have a modified version of the software available that will resolve all these issues both retrospectively and moving forward. 

Retrospectively there will be instances where electric vehicles have already been submitted to HMRC as P46(car) "Provided for the first time "or "Replacement cars" in the 2020/2021 tax year. HMRC, have advised us to allow our customers to resubmit these vehicles as P46(car) "Replacement cars" which will mean that corrected coding notices will be issued to employees if necessary.

Resubmitting Previously Submitted Electric Cars

The routine to resubmit electric cars needs to be run on a per PAYE basis, and is a 'once only' process. Navigate to a PAYE reference that has a P46(car) submission history, and then select the HMRC Filing > P46(car) option from the menu. When the screen appears, BEFORE preparing the submission, press "Control + E," or "F5" and you should see a dialogue similar to the one below:

Clicking the Yes button will mean a P46(car) submission is prepared that will include all the previously submitted electric cars as replacement cars "R"- these can be verified in the report that is generated for viewing/reconciliation. If you are happy with the list provided, simply complete the submission by clicking the Send Submission button.

If you leave the routine (or cancel out) you will need to press "Control + E" or "F5" again before preparing the submission again.

Additional Note

The latest software will also automatically present P46(car) replacements for both "Electric" and "ULEV" vehicles carried forward from 2019/2020. This means that "Electric" and "ULEV" vehicles that were available on 05/04/2020 and also 06/04/2020 will be automatically submitted as 2020/2021 P46(car) replacements from 06/04/2020 in order to ensure corrected coding notices are issued to employees at the earliest possible opportunity.