COMPANY CAR & P11D form | AccountingWEB


Company I work for always maintained position not to report company cars on P11d, pretending they were pool cars, which wasn't the case. This was the situation I inherited for P11D returns. I have completed returns based upon actual use of cars, thus reporting them on P11Ds’ for employees concerned.

In fact I expected some kind of 'explosion', but nothing happened. This would have been a nice end to the story if...

In the last quarter of 2009 the new financial manager was employed. During one of discussions I was informed that two company cars were disposed, transferring them to employees’ current users, and recording loans to the company on their behalf.  The problem here lures in the date of disposal.  Cars allegedly were disposed in May, while valuation documents (not without underlying issues),  e-correspondence and any other paperwork bears dates of October 2009. On one of car transfer document (copy of it) date of completion is masked with corrector.

In November 2009 DVLA sends car tax reminder to company as the car owner.

Up to November both employees claimed mileage at company car rates.  End December FM posts journals adjusting mileage claims to 40p (personal car rate) charging difference against loans.

One of car's evaluation (needless to say both were valued lower than 5000, to avoid tax liability on interest on company loans) is presented as a deal of car dealership offering a trade in deal. Knowing the car and possible market value of it I submitted valuation request on one of websites Valuation returned was 75 % higher than one used in disposal deal.

Time comes when I will have to prepare P11D forms again, but have no desire to get my hands dirty.

As situation stands today, P11d forms for these two employees should reflect:

Company car usage up to October 09;

Fuel excess (11 vs 40p)

Disposal gains ( at least for one of them )

I am afraid though reporting above would give a rise to hurricane.

Can please anybody advice?


dbowleracca's picture

post this in any answers

dbowleracca | | Permalink

Yet posting again in any answers and you will get a lot of advice

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