 What
do I need to do now for existing cars?
We asked earlier this year if employers would help us to
make the change in April 1994. Many of you have indicated
that you will.
It would help if you could let your Tax Office have as soon
as possible a list of your employees provided with a car,
showing for each
- name
- National Insurance number
- list price of car including delivery charge and accessories,
less any capital contributions
- amount of any payments made by the employee for private
use
- estimated mileage
This will help us get employees' PAYE codes adjusted in time
for the start of the new system in April 1994, as codes for
1994-95 are issued in January 1994.
It will avoid employees paying too much tax from next April
or having to pay more at the end of the year.
The new system for taxing company cars means the tax for
most employees with company cars will change. Most will be
better off under the new rules; others will face increases
in their benefit charge.
For cars made available between now and 5 April 1994
- it would help us to get your employees' tax right if you could send your Tax Office as soon as possible their names, National Insurance numbers, the list prices of the cars and accessories less any capital contributions, and their expected mileage bands.
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