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Sale of company van & reporting of benefits

What do I need to do from a benefits in kind reporting perspective

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A client of mine had a company van which was used by the director.  It was reported on P11D for a few years, including fuel BIK.

Director has sold the van to herself personally, so no more benefits being provided.

What needs to happen from a P11d/ benefits reporting perspective in this tax year? 

Thanks 

 

Replies (3)

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By David Ex
28th Sep 2021 11:11

Not sure what you mean.

What has actually happened? It’s September 28 today so has the client had the use of the company van for part of tax year 2021/22? If so, then there will presumably be a benefit in kind to report for part of the year.

Was the value at which the “Director has sold the van to herself personally” above or below market value?

Is the business VAT registered?

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Replying to David Ex:
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By Debittomycredit
28th Sep 2021 12:01

Thanks David.

Yep benefits provided to director from April to Sept. So these will be reported on P11d.

VAT & CT issues I'm fine with - thanks.

Just not as familiar with BIK reporting, is there anything to report to HMRC straight away to tell them van no longer being used or is it just a case of reporting on P11d down the line? The tax code is affected isn't it so I thought maybe HMRC would need to know straight away (the benefits haven't been payrolled).

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By David Ex
28th Sep 2021 12:13

https://www.gov.uk/tax-company-benefits/keeping-records-and-reporting-ch...

“Tell HMRC about starting or stopping company benefits

You must tell HMRC about any benefits you or your family start or stop getting from work - even if your employer has already taken Income Tax and National Insurance for them.”

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