PAYE RTI and EXB: 2018-19 Reporting of RDE2-Compliant Diesel Company Cars
(Doc ID 2367943.1)
Last updated on DECEMBER 04, 2019
Applies to:Oracle HRMS (UK) - Version 12.1 HRMS RUP9 to 12.2.7 [Release 12.1 to 12.2]
Information in this document applies to any platform.
From 6 April 2018 the diesel supplement, relating to the car benefit and the car fuel benefit charge, will increase from 3% to 4% for all diesel cars that are not certified to meet the Real Driving Emissions 2 (RDE2) standard.
The Certificate of Conformity available from the manufacturer will confirm whether the car is RDE2 (also known as Euro 6d) compliant.
This change means that the diesel supplement must not be applied when calculating the car benefit and car fuel benefit charge for diesel cars which are RDE2(Euro 6d) compliant.
Although it is not expected that there will be any cars on the market that meet the RDE2 standard prior to 2019/20, there may be a few. The following advice has been provided by HMRC on how to report a diesel car which is RDE2(Euro 6d) compliant during the 2018/19 tax year.
The diesel supplement continues to apply to those cars propelled solely by diesel (not diesel hybrids) and registered on or after 1 January 1998, which do not have a registered Nitrogen Oxide (NOx) emissions value. It will also apply to models registered on or after 1 January 1998, which have a registered NOx emissions value which exceed the RDE2 standard.
If you use the Oracle functionality to submit a P46(Car) return or to produce a P11D for the 2018/19 tax year, HMRC have advised customers to use ‘Fuel Type A – All other cars’ when reporting and calculating the cash equivalent for diesel company cars which are RDE2 (Euro 6d)compliant. Although this does not report the correct fuel type, it will ensure that the tax liability is calculated correctly without applying the diesel supplement.
In addition, if you have registered to payroll the car and car fuel benefit for an RDE2(Euro 6d) compliant diesel car, please record the Fuel Type as A for tax year 2018/19 which will ensure that the correct amount is calculated and reported.
HMRC have announced that they intend to update the P46(Car), P11D and Full Payment Submission (FPS) for the 2019/20 tax year to handle the new requirement fully. This will then be included in the Oracle functionality.
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