In this article
Our Product team is thrilled to present a new and exciting feature that has been highly requested by our customers - the ability to payroll company cars.
💡Closed beta: This functionality is currently in closed beta. If you wish to be involved, please reach out to our support team.
What's included
- You will be able to add company cars directly to your employee’s profiles.
- We make sure that you enter all the information HMRC require, and populate the FPS automatically for you, so you don’t have to worry about missing anything important!
How to add Company Cars to Pento
1. Open your employee's profile
Go to the Employees tab > select the employee > Pay items > Add Pay Item.
2. Select the pay item
From here, you can choose Company car (payrolled benefit).
3. Tell us about this benefit
Enter the date the car was first made available to the employee. If you also know when the car will be returned, you can enter this date as well. This is important if the car will be returned in the current tax year.
If the car has been unavailable to the employee for more than 30 days consecutively, then enter the total number of days. This will result in a lower benefit value.
Please note – If the car was made available to the employee in a previous pay period but wasn’t added to Pento, contact our support team to resolve the missing payment.
4. Registration number
Enter the registration number of the car. This will be included on the employee’s payslip.
5. Tell us about the car
On the next step, you can enter the details about the car. This includes the make, model, and fuel type. Some options may change depending on the fuel type you select.
6. Cost of the car and contributions from the employee
The next step is all about the cost of the car and any contributions the employee will make towards it. The list price, accessories total, capital contributions, and private use deductions are used to determine the overall value of the benefit.
Optional Remuneration Arrangements are very similar to salary sacrifice schemes. If you choose yes to this question, you must enter the amount foregone.
Please note – Any salary sacrifice deduction should be applied as a separate recurring pay item in Pento.
If the amount foregone is greater than the calculated yearly cash equivalent, then the cash equivalent will be used as the benefit value.
Please note – If the CO2 emissions of the vehicle are less than 75g/km, then this rule does not apply, and the amount foregone will not affect the yearly cash equivalent.
7. Private fuel
If the business pays for private fuel, then you should answer yes here. If the vehicle is not available for private use or the employee reimburses the business per mile of private use (see advisory fuel rates), then answer no.
If you select yes, we will apply the car fuel benefit charge. This will be shown as a separate item on the employee's payslip.
You will then be asked for information about the availability of private fuel and if an Optional Remuneration Arrangement is in place. It will then ask you to input when the fuel was available and if an Optional Remuneration Arrangement is in place.
8. Summary
On the next page, you will see a summary of all the information you have entered. You should confirm all these details are correct before saving the new pay item.
After you save and close, you’ll be able to see the benefit in kind value on your employee’s draft payslip.