What is a company car and fuel benefit?
Providing a company car to your employee may mean it is subject to tax and employer National Insurance if the car doesn't meet the exempt criteria set by the HMRC. Similarly, if you provide fuel for the employee's company car, the same exempt criteria will apply.
How to enable the company cars and fuel benefits
Before you can add company cars and fuel, you'll need to enable the benefit type:
From the left, choose Company settings, then Benefit settings.
Under the General settings section, click Set benefits preferences.
Answer each of the questions, then click Save.
From the left, choose Company settings, then Benefit settings.
Under the General settings section, click Activate benefits schemes.
Enable Company cars & fuel, then click Save.
How to add company cars and fuel to an employee
To assign the benefit to an employee:
From the left, select Benefits in kind, then Company cars & fuel. If you only have the company cars benefit enabled, simply click Company cars & fuel from the left.
Use the Search for an employee box to find the relevant employee.
Next to the relevant employee, click See all then Add new company car & fuel.
Complete each of the fields.
Click Save.
Payrolling company cars and fuel benefit
If you're registered to payroll your benefits, you need to indicate this in PayFit. To do this:
From the left, choose Company settings, then Benefit settings.
Under the General settings section, click Set benefits preferences.
Answer each of the questions, then click Save, ensuring you have selected the correction option under Reporting options.
Click Save.
Note: If you're not registered to payroll benefits, then you need to report them at the end of the tax year on a P11D. For more information about managing P11Ds in PayFit, please refer to our Help Centre article.