We are sorry for these minor drafting errors. In view of the very small number of cases affected by this error (less than 200 in total) we have decided not to revise the Schemas. In line with the Schemas, negative amounts should be suppressed. Action required P11D: We believe that this should affect less than two hundred employees. To ensure the right tax outcome, employers should either: 1. file the P11D as normal with a zero figure (in line with the Schema) and submit an amendment to the P11D noting the negative value (the amendment should be in writing), or 2. submit the P11D on paper with the negative value. Action required RTI: Whilst it is very unlikely that this would arise in an RTI submission, again the negative figure should be suppressed in line with the Schema. Data item 41A (Taxable pay in this employment including payrolled benefits in kind - Year to date figure) should be reported as the net figure (cash less any negative payrolled BiK). There is no reason for employers to contact HMRC in these cases.
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2018-19 reporting of RDE2-compliant diesel company cars 27 February 2018
HMRC’s Software Developers Support Team (SDST) has provided advice on how to report a diesel car which is RDE2 (Euro 6d) compliant during the 2018/19 tax year.
“From 6 April 2018 the diesel supplement, relating to the car benefit and the car fuel benefit charge, will increase from 3% to 4% for all diesel cars that are not certified to meet the Real Driving Emissions 2 (RDE2) standard.
The Certificate of Conformity available from the manufacturer will confirm whether the car is RDE2 (also known as Euro 6d) compliant.
This change means that the diesel supplement must not be applied when calculating the car benefit and car fuel benefit charge for diesel cars which are RDE2(Euro 6d) compliant.
Although it is not expected that there will be any cars on the market that meet the RDE2 standard prior to 2019/20, there may be a few. The following information provides advice on how to report a diesel car which is RDE2(Euro 6d) compliant during the 2018/19 tax year. The diesel supplement continues to apply to those cars propelled solely by diesel (not diesel hybrids) and registered on or after 1 January 1998, which do not have a registered Nitrogen Oxide (NOx) emissions value. It will also apply to models registered on or after 1 January 1998, which have a registered NOx emissions value which exceed the RDE2 standard.
Should your 2018/19 software package support the:-
calculation of the car and car fuel benefit reporting of 2018/19 in-year P46 car information reporting of end of year information for 2018/19 on forms P11D
we would ask (if possible) that, for the 2018/19 tax year only, you advise customers to use ‘Fuel Type A – All other cars’ when reporting and calculating the cash equivalent for diesel company cars which are RDE2 (Euro 6d)compliant.
If possible, can you also advise customers who have registered to payroll the car and car fuel benefit for an RDE2 (Euro 6d) complaint diesel car to:-
calculate the cash equivalent using the appropriate percentage for ‘Fuel Type A’ and enter this amount in ‘Box 182’ of the Full Payment Submission, and enter ‘A’ in ‘Box 177’ of the Full Payment submission.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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