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

apple
apple Registered Posts: 39 Dedicated contributor ? ? ?
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?

Comments

  • KernowAccountant
    KernowAccountant Registered Posts: 103 ? ? ?
    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
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Was the car bought in May 2015 or 2014?
  • apple
    apple Registered Posts: 39 Dedicated contributor ? ? ?
    Hi Marie, it was bought in May 2014, so p11d submission deadline was missed.
  • apple
    apple Registered Posts: 39 Dedicated contributor ? ? ?
    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
    apple Registered Posts: 39 Dedicated contributor ? ? ?
    I've checkex s216 ITAEP and he is not a full-time working director. He has a full-time job somewhere else
  • KernowAccountant
    KernowAccountant Registered Posts: 103 ? ? ?
    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
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    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.
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