New bandings for electric vehicles

From 6 April 2020, the car and car fuel benefit calculations are changing with the introduction of 11 new bands for ultra-low emission vehicles (ULEVs) including a separate zero emissions band.

If a car has a CO2 emission figure of 1-50g/km employers will need to provide the car’s zero emission mileage. This is the maximum distance that the car can travel in miles on a single electric charge. The graduated table of company car tax bands will be based on the zero emission mileage of the car.

This change will result in some new reporting requirements for electric cars that have a CO2 emission figure of between 1-50g/km. HMRC has confirmed that from 6 April 2020, if you are adding a new car or making one available to an employee for the first time, a new zero emission mileage field will be shown on the form P46 (car). The online P46 (car) will be updated with the changes. For paper P46 (car) submissions you will need to ensure you complete the latest version as historic copies may not include the new zero emission mileage field. In addition, there will be a new field on the Full Payment Submission (FPS) to provide the car’s zero emission mileage figure (if relevant).

The zero emission mileage figure should be available on the vehicle’s Certificate of Conformity. For leased cars, the information should be provided from the car leasing firm or fleet provider. If, in extreme circumstances, this information is not available, HMRC allows you to obtain the zero emission mileage figure via the car manufacturer.

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