Car Benefit Charge – Changes from April 2011Wednesday, July 15th, 2009
As announced in the 2009 Budget, the calculation of the car benefit charge is to be simplified considerably from April 2011. There are currently eight different types of car, each with its own code letter for use on form P46(Car). These will be reduced to three when the changes are implemented.
HMRC has announced the new code letters that will apply, as follows:
- E – Electric only (current type E, so unchanged)
- D – Diesel cars of all kinds (includes current types D and L)
- A – All other kinds (current types P, B, C, H and G)
HMRC explains that these letters have been chosen because they are easy to distinguish from each other even if a hand-written form is poorly written, and because they can be said to stand for the opening letter of the above descriptions.
Notes for Payroll Software Developers (July 2009)
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