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P46 Car query

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client left previous employment, should the ex-employer have submitted a P46 Car informing HMRC that the car had been withdrawn?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


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By occca
04th May 2012 16:16

Get client to call previous employer

They need to submit a P46

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By pauld
04th May 2012 16:35

pick up the phone

and with a bit of luck you might get someone helpful at the other end

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06th May 2012 18:26


This doesn't make sense.

"Previous employer presumably submitted a P45 online"  Not "presumably" - they are required to file a P45 online and that is what they evidently did.  But why didn't you file the P45-3 (online, of course) when he joined NewCo, for which you appear to run the payroll?

However, since you filed a P46, there are only 3 circumstances, each with their own specific PAYE code.  If it was Circumstance B, "I have had another job since last 6th April, but this is now my only job", the specified PAYE code (in 2011/12) was 747L on a Month 1 basis.  If he started with NewCo very recently, it would be Circumstance A, "This is my first job since last 6th April", and the specified code (in 2012/13) would be 810L.  If you filed a P46, you must apply the emergency code on either a Month 1 or cumulative basis.

It is irrelevant if HMRC has issued a coding notice to the employee.  If you are running a payroll for NewCo, you must only apply PAYE codes addressed to NewCo as an employer.  In any event, the coding notice sent to your client says "that they were 'between jobs'", so it would not apply to NewCo.

To answer your questions:

No - the previous employer is only required to file a P46(Car) if he withdraws a company car from a continuing employee.  The P45 for a leaver tells HMRC all they need to know.Yes - it does seem to be the case.There is nothing to rectify, apart from you applying the emergency PAYE code on NewCo's payroll.

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By ACDWebb
07th May 2012 11:35

The P46(Car)

goes in quarterly for first time provision of cars and final withdrawal, so there might be a gap between submission of the P45 and P46(Car). Also we have found that the April quarter P46(Car) submission has failed to make it through the gaterway for the last couple of years. The On-line Helpdesk could give no reason for this other than it would be covered by the P11D submission.

Easiest answer appears to be for the employee to ring HMRC and point out that they no longer receive the benefits, or for you to do so if you have agent authority

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01st Jul 2012 16:23

Change of Company Car

Employers have a statutory duty to report Benefits in Kind and any changes to the benefits provided, BUT Employees also have the right to notify HMRC about any changes to their Personal circumstances which affect their PAYE Coding.

The website would appear to have taken the view that Individuals, or enlightened Employers should notify HMRC directly about a change to the amount of Benefit in Kind which would change the PAYE Coding.

Can I suggest that this might be worth investigating?

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