If you provide company cars and fuel benefits to your employees, they are liable for National Insurance contributions on the value of the car and the fuel they use.
How the P11D Cost of a company car is calculated
Sage 50 P11D will automatically calculate the cost of a company car. The exact calculations depend on the type of fuel or power used by the car.
The calculations are normally comprised of five elements:
- Sage 50 P11D calculates the total cost of the company car.
- Based on the type of fuel or power used by the car and the CO2 emissions of the car, a percentage is applied to the total cost.
- The percentage reduced cost is then divided by the time for which the car is available to the employee during the tax year.
- Contributions made by the employee for use of the car are deducted.
- The resulting value is rounded down to the nearest whole pound.
The value calculated is the P11D Cost of the company car.
If a car is a pool car, it's not considered available for private use. Because of this, pool cars are not available in Sage 50 P11D.
Why company car and fuel benefits may not be included on Form P11D(b)
There are two reasons why company car and company car fuel benefits might not be included on Form P11D(b), as follows.
Employer isn't subject to class 1A NIC's
- Click Employer, then click Open Employer record.
- Click Settings.
NOTE: Check that the NIC Liable check box is selected and any dates entered in the NIC Liable From and NIC Liable To boxes fall on or between the start and the end of the tax year.
The employee is not subject to Class 1A NICs
- Click Employee, then click Open Employee record.
- Click the Tax / NIC Details tab
In the NIC Details section ensure that the Liable check box is selected and dates entered in the From and To boxes fall on or between the start and the end of the tax year.When this information is correct, the Class 1A NICs for company car and company car fuel benefits are included on Form P11D(b).
Enter a company car's benefit record
- From the employee list, select the required employee, then, under Benefits, click Company Cars.
If the employee already has a benefit of this type, the existing benefit record appears. To create a new benefit record, click New.
- Complete the Company Cars window.
- To save the benefit record, click Save.
- To return to the Sage 50 P11D desktop, click Close.
Vehicle Details tab
Complete the Vehicle Details tab as follows:
All mandatory information appears in blue.
|The make of the car must be entered, for example, Ford.
|Enter the model of the car, for example, Focus.
|Enter the car registration number.
Enter the vehicle identification number (VIN).
This can be found on the registration document (V5).
|This check box is selected automatically. If the car is not available for private use and you clear this check box, there is no taxable benefit arising for the car, fuel or mileage and the car details do not appear on the P11D form for the employee.
If the car is a classic car, select this check box. A classic car is one with a market value of £15,000 or more and which is 15 years old or more at the end of the tax year.
If the date when the car was first registered is less than 15 years ago, the check box is not active.
|Date Car Registered
|This information is mandatory and you must enter the date when the car was first registered. You can get this information from the Vehicle Registration document (V5).
|Enter the date the car was first made available to the employee. If no date is entered, Sage 50 P11D calculates availability from the start of the tax year.
|Date No Longer Available
|If an employee has had use of a company car that is now no longer available to them, enter the date when the car stopped being available.
|Consecutive Unavailable Days
|Enter the total number of consecutive days when the car was unavailable for use by the employee. This must be at least 30 consecutive days.The taxable benefit of a company car is reduced when the car is unavailable for 30 consecutive days or more. For example, if the car was unavailable for 35 days and then 25 days, the total entered should be 35 days. This is because only 35 days is above the required 30 day consecutive period.
|Total Days Available this Tax Year
The Total Days Available is calculated for the current tax year only. If your Start and End dates span two tax years, the figure records only the number of days the vehicle was available after 6 April in the current tax year. For example, if the Start Date is 1 January 2020 and the End Date is 1 May 2020 the car has been available for a total of 26 days.
This information is read only and can't be changed.
Complete the Benefit tab as follows:
All mandatory information appears in blue.
|This information is mandatory. From the drop-down list, choose the engine size of the car.
|Type of Fuel or Power
|From the Type of Fuel or Power drop-down list, choose the type of fuel or power used by the car.Diesel cars registered from 01/01/2006 use the Euro 1V Emissions Diesel fuel type.
Enter the Carbon Dioxide (CO2) emissions figure for the car, shown as grams per kilometre.
NOTE: All cars registered from 1 January 1998 are required by law to be supplied with details of their CO2 emissions. Cars registered after 1 November 2000 have the CO2 emissions figure recorded on the Vehicle Registration document (V5).
|No Approved CO2 Emissions Figure
If the car was registered during or after 1998 and you have no Carbon Dioxide (CO2) emissions figure, select this check box and the benefit is calculated using the engine size.
NOTE: If you enter a registration date earlier than 1998 into the Vehicle Details window, this check box is not active.
|Zero Emissions Mileage
Enter the number of miles the car can achieve with zero emissions. This will only be available if the total C02 Emissions of the vehicle are less than 50.
|Private Fuel Provided
|If the employer provides fuel for the private use of the car, select this check box. If you don't select this check box, there is no chargeable benefit calculated on the fuel provided.
|Employee Made Good All Fuel Costs
If the employee pays back to the employer the full cost of fuel provided for private use, select this check box.
NOTE: If you haven't selected the Private Fuel Provided check box, this check box is not active.
|Date Private Fuel Withdrawn
|If private fuel benefit has been withdrawn, enter the date the benefit ceased to be available to the employee.
|Private Fuel Reinstated
|If private fuel benefit has been given back to the employee, select this check box.
|List Price Inc. Standard Accessories
This information is mandatory and you must enter the list price for non-classic cars or the market value for classic cars, including the cost of any qualifying accessories, for example electric mirrors and windows. Qualifying accessories can include any kind of equipment except mobile telephones, equipment to enable a disabled person to use the car or equipment installed to convert a car to run on road fuel gases. The amount entered should be the total price, including VAT.
NOTE: If you've selected the Vehicle Details > Classic check box , the description of this box changes to Market Value.
|Enter the cost of any non-qualifying accessories. This can include, for example, an in-car CD player purchased by the employee for personal use in the company car. The value entered must exceed the minimum accessory value of £100.If you've selected the Classic check box on the Vehicle Details window, this box is not active.
|Enter any contribution made by the employee to the cost of the company car or any contribution to the cost of accessories for the company car. If contributing, the employee is entitled to a deduction from the list price or market value.
|Private Use Contribution
|Enter the amount contributed by the employee for the private use of the car, for example if the employee contributes to the fuel consumption of the car. The type of employee contribution acceptable must be agreed with the employer. For further information about this, please contact your tax adviser.
|Amount PAYE'd (Car)
|If you've agreed with HM Revenue & Customs to pay the tax due on the car through the employee's payroll, enter the amount from which the tax has been deducted.
|Amount PAYE'd (Fuel)
|If you have agreed with HM Revenue & Customs to pay the tax due on fuel for the car through the employee's payroll, enter the amount from which the tax has been deducted.
|Optional Remuneration Arrangements
|This is the amount of salary or cash given up by the employee in return for the provision of the benefit or the amount of cash pay that the employee could have received instead of that benefit. A benefit is deemed to have been provided via an OpRA if a Cash Foregone value greater than zero is entered.
Complete the Mileage tab as follows:
All mandatory information appears in blue.
Enter the date when the business journey was undertaken or if you are recording the business mileage annually, enter a date in that tax year.
If you are inputting company car mileage, this information is mandatory.
|If an employee has a company car, in the Mileage box, enter the business mileage for the employee's vehicle. You must enter the amount of mileage for the business journey undertaken, or if you record your mileage details annually, enter the car's total annual business mileage.
|Enter the number of miles travelled by the passengers in the car. Mileage allowance can then be paid in proportion to the distance of passenger miles travelled.
|Enter the amount by which you reimburse the employee for the cost of the actual business mileage of the car. You can only reimburse the employee if you do not provide private fuel for the car.
|If you have agreed with HMRC to deduct the tax due on the benefit each month through the employee's payroll, enter the amount from which tax has been deducted.
|Enter information so that you can easily identify the item, for example, the start and destination of the journey.
|P11D Mileage Cost for all Cars
|This figure updates automatically and shows the calculated mileage benefit for all cars, for this employee.
P46 (Car) tab
The information entered on this tab is for P46 (Car) reporting purposes only and is not included in any P11D benefit calculation.
Complete the P46 (Car) tab as follows.
|P46 (Car) Reason
|From the check boxes, choose the reason for producing the P46 (Car) form.
|How often does the employee pay a private use contribution?
|If the employee contributes for the private use of the car, from the drop-down list, choose how often this occurs.
|Produce P46 (Car)
|This check box is selected automatically. If you do not want to produce a P46 (Car) report, clear the check box.
Notes and Summary tabs
To enter and record any additional information specific to the company car benefit of this employee, click the Notes tab. You can enter public and private notes. Any information entered in the Public pane is recorded on any of the relevant benefit reports. Any information entered in the Private pane is only recorded in Sage 50 P11D.
The Summary tab shows all the details that have been recorded for the selected employment. If you want to change the benefit summary details, double-click the summary entry. The relevant information appears, make the changes required then click Save. The changes made appear on the Summary tab.
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