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Quickbooks Payroll - Car Allowance

I need to set up Car Allowances and Company Cars in my QB2002 Payroll. I am new to this country and do not know the laws and QB help file is pretty much useless. Any help would be appreciated.
Philippe Jardin


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By Anonymous
31st Jul 2002 15:09

bon chance
glad you have got stuck into the finer points of PAYE etc already. First you havent defined car allowances clearly enough for us to give you a definitive answer but I suspect that you are referring to petrol allowances etc for people with their own cars rather than those owned by the company, if that is the case then you have to set them up as a payroll item ~ 'employer contribution item' ~ 'taxes' NI employer & employee and probably income tax as well.

You will need specialist advice on this as payment schemes tend to differ from firm to firm and so therefore do the tax consequences;

Second in respect of company cars income tax is collected directly from employees through PAYE codings; however there is also employers class 1a national insurance on the car and fuel benefit and this is calculated after the tax year end and reported on forms P11d. The NI is notified to the Inland Revenue and paid by form P11D(b)2002 etc, together with NI on other benefits as declared on the forms P11(d), which should have been submitted by 19th July.

good luck, all other comments welcome!

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