Update the following information in Sage 50 Payroll. 

1. Double-click the relevant employee on your employee list.
2. Go to the Cars/Fuel tab.
3. Click the Car Registration drop-down and select the correct car.
4. Enter the Date Last Used.
    NOTE: Don't clear the Is this car being payrolled checkbox on the old car record if you payrolled that benefit. 
5. Select Save then Close.
6. Create a new car record for the replacement vehicle.
7. In the new car record, select the P46 (Car) button.
8. Ensure that the P46(Car) required checkbox is clear.
9. Select the checkbox on 2. Replaced Car.
10. Use the Car Being Replaced drop-down to select the car that you've replaced.
11. Select OK then Save.
12. Select Close.

When you submit the next Full Payment Submission, HMRC receives the replacement car details automatically.

In April 2023, HMRC re-introduced the requirement to submit a P46(Car) when you replace an employee's car.

This only applies if you don't use payrolling benefits guidance to process the tax for this car.

Update the following information in Sage 50 Payroll. 

1. Double-click the relevant employee on your employee list.
2. Go to the Cars/Fuel tab.
3. Click the Car Registration drop-down and select the correct car.
4. Enter the Date Last Used.
5. Select Save then Close.
6. Create a new car record for the replacement vehicle.
7. In the new car record, select the P46 (Car) button.
8. Select the P46(Car) required checkbox.
9. Select the checkbox on 2. Replaced Car.
10. Use the Car Being Replaced drop-down to select the car that you've replaced.
11. Select OK then Save.
12. Select Close.

To let HMRC know about the replacement car, submit the P46(Car) from Sage 50 Payroll.