As noted in the calendar of key tax deadlines, form P11D must be submitted online by 6 July to report benefits provided to employees and directors. Common benefits include company cars, private healthcare, and loans at less than the HMRC official rate of interest of 2.25%.

For company cars, it’s important to note that an additional taxable benefit may apply if private fuel is provided. However, this additional tax is waived if the private fuel for the tax year 2023/24 is fully reimbursed by the employee before 6 July 2024.

It’s also worth mentioning that no taxable benefit or entry on form P11D is required for employees who use a “pool car.” In such cases, employers are not obligated to pay Class 1A national insurance contributions. The criteria for a car to qualify as a pool car are stringent and often misunderstood.

For more detailed information on pool car conditions, please refer below.

What is a pool car?

The criteria for a company car to qualify as a pool car are specified in employment income legislation:
(a) The car must be available to and used by more than one employee.
(b) Each employee must have access to the car due to their employment.
(c) The car should not be primarily used by one employee to the exclusion of others.
(d) Any private use of the car by employees must be minor compared to its business use.
(e) The car should not normally be kept overnight at or near any employee’s home, except when kept at the premises of the employer.

These conditions are crucial for determining whether a company car qualifies as a pool car under tax regulations.