PRIVATE USE OF COMPANY CAR - ONE MAN COMPANY, NO SALARY, DOES IT NEED TO BE REPORTED?

apple

Sorry for my silly question in advance: one man company, director bought a car in last May, and it has been in his private use since. i was only informed about the purchase last week when i received all the invoices of the 1st financial year
should have been the car reported on p11d for the last payroll year? Private use with fuel not be worth £8500. i guess no class 1a NI would due. what are the penalties for late submission of p11d if no tax or NI were payable?

KernowAccountant

To be a pedant, if the DIRECTOR purchased the car then there is not benefit. I assume that it is actually the company purchased the car.

It is a reportable benefit, despite the director being a 'lower paid' employee (presumably) by virtue of s.216 ITEPA 2003.

It won't take you much effort to Google the penalties.

MarieNoelle

Was the car bought in May 2015 or 2014?

apple

Hi Marie, it was bought in May 2014, so p11d submission deadline was missed.

apple

Thanks, it was ourchased by the company. I just dont know what to do witb clients who bring you a whole year of invoices/receipts late. I' ve found another evidence of BIk, eyetest with a pair of glasses.

apple

I've checkex s216 ITAEP and he is not a full-time working director. He has a full-time job somewhere else

KernowAccountant

apple said:

I've checkex s216 ITAEP and he is not a full-time working director. He has a full-time job somewhere else

Ok... but presumably as it's a "one man company" he holds a material interest therein?

apple said:

I' ve found another evidence of BIk, eyetest with a pair of glasses.

You'll need s.320A for that one.

MarieNoelle

If your client doesn't already have a PAYE scheme you would need to apply for one. You would also need to fill in form P46 (car) to let Hmrc know. Once you have a PAYE scheme you can fill the late P11Db and pay over the tax due but there will likely be late filing and late payment penalties.