In rare circumstances, two employees may 'share' a company car (for example with an employee and their partner) and they want the tax divided between them.
The concept of a 'shared car' is not widely used when reporting P11Ds, but according to "EIM25200 - Car benefit calculation Step 7A: shared car: introduction" this is something that can be completed on a 'just and reasonable basis'.
The P11D Organiser does not have a 'bespoke' shared car function, so there are three possible options within the software:
- Apply the car to one employee and let the employees sort the tax - this is often the simplest option all round
- You could apply the vehicle to one employee for six months, and the second employee for the other six months (assuming a 50:50 split) - this is fairly 'clean' and simple to achieve
- You could apply the same car to each employee for the whole year marking it as a a 'motor trade vehicle' within the P11D Organiser, which would allow two people to share the same car. You would then set the 'days unavailable' to 183 for one employee and 182 for the second (not for a leap year!) - this is a fairly simple solution and would allow you to demonstrate the 'just and reasonable' criteria. Obviously, if the share wasn't 50:50, you could adjust the days unavailable accordingly.
Remember HMRC state that payments for private use should not be reduced, as this is not ‘just and reasonable’.