P46 Car query | AccountingWEB

P46 Car query

I have a client who left a previous employment where they had a company car. Previous employer presumably submitted a P45 online and shortly afterwards client received a new PAYE coding notice, for some reason it assumed that the client still had a company car and medical insurance (even though the letter acknowledged that they were 'between jobs'). In the meantime I  submitted a P46 for their new employment in their NewCo assuming that HMRC would then provide a new adjusted PAYE coding notice that excluded any car benefit, as they don't have a company car in the new business.

No new PAYE coding notice has been received.


A few questions:


1. When client left previous employment, should the ex-employer have submitted a P46 Car informing HMRC that the car had been withdrawn?

2. Is it normal for HMRC to assume that the employee takes a company car with them or will have a similar company car at their new job?

3. Whats the best way to rectify this? Moneysoft Payroll does not allow me to submit a P46 Car for a vehicle owned in a previous employment, and the form seems to be designed to be completed by the previous employer, not new employer.


Is it just a case of picking up the phone to HMRC to get this rectified? In the meantime the client will suffer tax deducted as a result of someone else's fault (albeit they will get it refunded one day).

Many thanks,

There are 5 comments. Login or register to view them.

Get client to call previous employer

occca |

pick up the phone

pauld |


Euan MacLennan |
Euan MacLennan's picture

The P46(Car)

ACDWebb |
ACDWebb's picture

Change of Company Car

Peter Tucker |