By Ben Webb, assistant manager, Deloitte & Touche
'COMPANY car fleet managers and those responsible for administering various forms of allowance to company and private car drivers are now setting off on the adventures of a new tax year. Here are some of the main deadlines to navigate over the next year.
April 19 is already passed, as the date by which any payments of pay as you earn (PAYE) and Class 1 National Insurance contributions (NIC) must have been submitted to the Inland Revenue for 2003/04, including those which might arise from car or mileage allowances.
May 3 has just passed and is the date by which form P46 (car) must be submitted to record details of movements in company car fleets or changes in beneficiaries' status in the quarter to April 5, 2004. Subsequent quarterly returns will be due on August 2, November 2 and February 2, 2005.
May 19 is the deadline for filing end-of-year return forms P35 and P14 for 2003/04, which should include correct details of Class 1 NIC liabilities and PAYE arising in respect of car allowances or excess business mileage payments.
Automatic penalties are charged if returns are not received by May 26, 2004 and employees must have their copy of P14 details (form P60) by May 31, 2004.
July 6 is when forms P11d and P11d(b) must be submitted by, accurately recording all benefits and expense payments for each employee which are not covered by a dispensation or PAYE settlement agreement (PSA). These include every variety of vehicle benefit and mileage reimbursement or payment for company and where appropriate private cars. The correct calculation of Class 1A NIC on company car related benefits depends upon it. An incorrect form P11d carries with it a potential penalty of up to £3,000.
July 19 is the time to pay the company's Class 1A NIC liability for 2003/04.
August 31 is typically the time by which the Inland Revenue requests a company to advise of its calculation of residual liabilities to be settled under a PSA for 2003/04, which may include car-related benefits, for example mileage payments not reported on form P11d nor taxed through the payroll.
October 19 is the time to pay the company's income tax and Class 1B NIC liability for 2003/04 under a PSA.
The final date to draw to your attention is April 5, 2005. This should be a time to reflect upon the travails of the past tax year. Can the company include something more in a PSA or a dispensation to ease the payroll or reporting burden for the future?'
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