HMRCs consultation, 'Draft legislation: The Income Tax (Pay As You Earn) Regulations 2017', in respect of car data reporting for payrolled benefits and changes to optional remuneration arrangements closed on 28 November 2017.

Changes are required following the move to Voluntary Payrolling and new measures for Optional Remuneration Arrangements (OpRA).

The changes are intended to commence from 6 April 2018.

Regardless of whether an employer chooses to voluntarily payroll car and fuel benefits, they will still be required to provide data regarding cars and fuel.

The proposed changes to the PAYE Regulations set out what information employers are required to report and how it will be submitted to HMRC.

Car Data Reporting 

Draft changes to the PAYE regulations include details of how company car data will be reported if the benefit is payrolled.

In the first Real Time Information (RTI) return in which a Company Car benefit is payrolled, information about the car must be included:

  • Make & model
  • CO2 emissions figure
  • Type of fuel or power
  • Price
  • Cash equivalent or salary amount forgone in accordance with OpRA rules
  • Date car is first made available
  • Cash equivalent of fuel or salary amount forgone
  • Date fuel provided

Subsequent RTI returns will include the payrolled benefit, but will also include additional information in the following cases:

  • In the first return after car ceases to be available, the date the car became unavailable is included.
  • In the first return after fuel ceases to be provided, that date of cessation is included.
  • Errors must be corrected in the first return after it is discovered.

Optional Remuneration Arrangements 

Various suggested changes to PAYE regulations relating to optional remuneration arrangements generally have also been included:

This includes:

  • Ensuring that cash equivalents are changed to "relevant amount or amount forgone" in the legislation and the OpRA are referenced.
  • A requirement for the employer to provide details of the taxable amounts under OpRA, for each employee

Links to our guides:

Salary sacrifice and optional remuneration schemes

Company cars

Car fuel benefit charges

Payrolling of benefits

Links to HMRC:

Draft regulations in respect of Car Data Reporting Requirements and Optional Remuneration Arrangements