If you provide an employee with a car benefit, set their car up in your software.

Create a new car record

1. Double-click the required employee on your employee list to open their record.
2. Go to the Cars/Fuel tab, then select the New Car button.
3. Select Next then ▼ enter your car details.

   Car Registration	The number plate of the company car.
   Make and model	The make and model of the car, as shown on the Vehicle Registration Certificate (V5C).
   Engine Size (cc)	The engine capacity of the car. This part of the Class 1A National Insurance Contributions (NICs) calculation.
   Date first registered	This date determines if the vehicle is a classic car, and is on Form P46(Car). It's also used for calculating Class 1A NICs.
   Type of Fuel or Power	The type of fuel or power used by the car. This is on the P46(Car).
   No Approved CO2 Emissions	Select this check box if the car: Registration took place before 1 January 1998 Is a one-off model or a privately imported car from outside the EC It doesn't have an approved CO2 emissions figure   This is part of the Class 1A National Insurance (NI) calculation.
   CO2 Emissions (g/km)	You can get this information from the Vehicle Registration Certificate (V5C). This is part of the Class 1A NI calculation.

4. Select Next then ▼ enter your car valuation details.

   List Price including Standard Accessories	The manufacturer's original list price of the car plus the cost of any standard accessories, inclusive of VAT.
   Current Value (Classic cars only)	Enter the value of the car if:   It's more than 15 years old It has a classic value of £15,000 or more, and Its current market value is greater than its original list price
   Non-Standard Accessories	The value of any accessories added to the car after purchase. Don't include accessories of less than £100 or accessories on classic cars.
   Date car first made available	The date that the car was first available to the employee.
   Capital contribution by the employee	Any contribution the employee made towards the cost of providing the car, or any qualifying non-standard accessory. This part of the Class 1A NI calculation.
   Sum payable by employee for private use (per year)	If the employee contributes to the private use of the company car, enter the value of the contribution. This part of the Class 1A NI calculation.

5. Check the details are correct, then select Finish.
    TIP: You've completed the wizard to create the car record, and can now enter the car details. 
6. In the employee record, enter ▼ the relevant car details.

   Cash Foregone (Car)	Enter the cash foregone for the car. This is the cash benefit value that the employee didn't take. Find out more in our Optional Remuneration Arrangements (OpRA) article.
   Is this car being payrolled?	If you're payrolling this car benefit, select this check box. You must have registered with HMRC before the current tax year to payroll benefits.
   Is fuel provided for private use?	If you're paying for the fuel for the employee's private use, select this check box. This determines whether a standard charge occurs, and whether you pay Class 1A NI to HMRC.
   Date fuel provided?	If you're paying for the fuel for the employee's private use, enter the date you provided the fuel.
   Cash Foregone (Fuel)	Enter the cash foregone for the fuel. This is the cash value that the employee didn't take.
   Cash Equivalent for fuel being payrolled	Enter the cash equivalent for the fuel being payrolled.
   Reimbursed by employee	If the employee is paying towards the upkeep of the vehicle, enter the amount here. This reduces the overall calculation.   NOTE: This is separate to the employee's regular payment for the car.

7. Select Save.
8. If required, note the cash equivalent values, then select Close.

You can now submit the P46(Car) report to HMRC.

 NOTE: To find out more about cash equivalent values, visit the calculate the cash equivalent of a car benefit you're payrolling article.