When to Send them in?

The Form P46Car would seem to be a sensible way in which Payroll staff can ensure that those Employees who are having a new or changed vehicle can have the most up to date PAYE Code Number.

This avoids the - "Why do I owe them TAX when I pay it each month!", question, so often associated with HMRC not sending out correct codes as soon as the situation demands it.

The question arises therefore, why does HMRC think that Forms P46 CAR should only be sent in quarterly?

The P46 CAR Form clearly states –

"Complete and return this form within 28 days of the end of the quarter to 5 July, 5 October, 5 January or 5 April in which the change takes place."

This mean that an Employee getting a new more expensive vehicle on say, 6th July is not realistically going to have their PAYE Code Number adjusted to take account of the increased taxable benefit until at least three months after the event. That means they will have been on the wrong PAYE Code Number for at least three months, which means they will have paid insufficient Income Tax and will be in an Underpayment situation at the end of the Tax Year.

HMRC wouldn't appreciate it if they were only advised on a quarterly basis of all new starters, would they?

Is this another example of HMRC's ideas on Customer Service?

Let us know what you think