Title

Purpose
The purpose behind an employer completing a P46(Car)-Form is toensure that an employee's PAYE tax code is changed as quickly aspossible in order to take into account the provision of a car and/orprivate fuel.
When an employee ends employment and returns company car, the employershould send in a completed P46(Car)-Form as soon as possible.
Note: There is no requirement to send in a P46(Car)-Formwhenever an additional qualifying accessory is provided with the car.This information only needs to be reported on the P11D/P9D form at theend of the tax year. The IRNICO requirement for employers is tomake a P46(Car)-Form return to their PAYE tax office no laterthan 28 days after the end of a tax quarter (tax quarters are until 5April, July, October and January) to account for any changes in carprovisions for a particular employee. For late returns, a penalty of upto £300 per return can be made with a further £60 per day per returnthat the offence continues.
Many employers do not wait until the end of a quarter before making aform P46 Car return. They complete the form as soon as a change hasbeen notified.

Prerequisites
It is necessary that you run a Convrsion report to prepare thedatabase. This happens the first time you run the P46(Car)-report
. It creates P46(Car)- Forms, in the same way as theP46(Car)-report, for all cars that were available on or after 6.4.2002,stores them in the archive, but doesn't outputP46(Car)-SAPScript-Forms. Each subsequent time you run the report youcan get output.

Activities
The next chapter describes a typical run of the P46(Car)-report.

Selection
In the Selection section, choose the relevant selectioncriteria. This determines the begin date of the tax year. The reportcan only be run for single payroll area.
In the section Processing criteria:
Enter the Tax year (ending April 5th, e.g. if you enter 2003 fortax year, then the tax year from 06.04.2002 to 05.04.2003 is meant).Together with the Payroll area it determines, the Personselection period. The Start Date of Person Selection Periodis the begin date of the first payroll period for the givenPayroll area and Tax year. The End date of personselection period is the current date. You can change the Enddate of person selection period, but not the Start Date ofPerson Selection Period. This avoids gaps and any resultingdatabase inconsistencies.
Set the indicator Create P46(Car)-Forms, if you would like tocreate new P46-Forms for the selected set of persons. See the detailed documentation.
Set the indicator Repeat P46(Car)-Form,if you would like tocreate P46(Car)-Forms that were already printed during anearlier run. See the detailed documentation.
Set the indicator Test run, if you would like to run this reportin test mode. See the detailed documentation.
In the Output option section, you can choose between thefollowing two output options:
SAPScript
,,,,Print the P46(Car)-report data via SAPScript forms.See the detailed documentation.
ALV Output
,,,,Print the P46(Car)-report data via ALV. Seethe detailed documentation.
Set the indicator Print pages in separate lot (which is onlypossible in the SAPScript mode),if you would like to print the firstpage of the P46(Car)-Form for all selected employees. Once thishas been completed, you will be offered a print option for the secondpage of the form for all employees. Note: Before confirming, you mustchange the preprinted forms accordingly.
if you do not set the indicator Print pages in separate lot, theentire P46 packet will be printed for a given employee. Once the packetis complete, the packet for the next employee will then be printed.
The field Capacity in which signed has to be entered.See the detailed documentation.

Execution
Press the Execute button.
Error handling during the execution.
The following errors need to be acknowledged by the user, in orderto let the report run further.
If one of these errors occurrs during the run, the Confirm screen
will appear. It displays an ALV list of all personnel numbers (oneentry per personnel number), whose processing could not be finished dueto one or more of the following errors. The user has to check allpersonnel numbers, which can be processed further in his opinion andwon't make any problems to him in the future. Doublecklicking on anentry opens a new ALV list that contains all P46(Car)-Forms forthe selected personnel number.
By setting the indicator for a personnel number, all forms for theperson will be stored in the archive (in the case of productive mode).If not, all forms of this personnel number will be rejected.
Error-Code 878
Indicates that there are entries in the archive belonging to a car,which is not withdrawn, but is not captured on Infotype Company Car0442. This could occur when an infotype record was deleted.
Error-Code 879
Indicates that late entry of a car causes an inconsistancy with formsstored previously. Due to this, the report is not able to recognize thegiven car as a new as a second or subsequent, or as a replacement carprovided to the current employee. For example, if a car1 was availablefrom 10. August, and car2 is available from 5. August, but is enteredon Infotype Company Car 0442 after a P46(Car)-Form wasprinted for car1, there is an inconsistency as to which of the carsneed to be set as new or second car. This problem should be recoveredmanually by the user, if it was an entry mistake, otherwise aP46(Car)-Form Second car will be created by the report.
Error-Code 880
Indicates that the withdrawal date of a car has been changedsubsequently.
Note: It is very important that you check the long text of theerrors (if available)!
-->After this step, the report continues with the statistic evaluation(See below).
Important warnings, which don't need to be checked by the user.
P46(Car)-Form should only be produced for directors or employeesearning a salary of £8500 or more a year. If an employee does notfullfil these conditions at the time the report is run, aP46(Car)-Form will still be printed and stored in the archive.For employees where this occurs they will be displayed in thewarning list.
The screen HR-GB: P46(Company Car) form for Great Britainappears,which shows you a statistic evaluation of the current run ofthe P46(Car)-report.

Output
To produce the output (SAPScript or ALV)
select ALV Output P46(Car), if you have chosen this outputoption in the selection screen.
select SAPScript Output P46(Car), if you have chosen this outputoption in the selection screen.
You can switch between the two output options using the menu pathExtras -> Switch display forms.
The information and error messages can be found under menu pathExtras:
Warning list - Displays warnings and information for allprocessed P46(Car)-Forms.
Error list - Displays error messages for the personsP46(Car)-Form that could not be produced or for those who causeserious problems.
Note1: You can also run this report in the background, byselecting Program -> Execute in background. The results (createdforms) can be displayed under menu item System -> Own spool request
.
Note2: To determine if an employee is earning at the rate of8500 Pounds per year or more, the report performs the following steps:
Uses the value for taxable pay (/121) form the CRT for the last payresult in the processing period.
Projects expected value of /121 to the entire tax year.
Calculates the expected car benefit for the entire tax year.
The amounts from the last two steps above are added together.
If the sum is greater or equal to the limit (currently at £8500) -->P46(Car)-Form is necessary.
If the sum is lower then the limit --> P46(Car)-Form is notnecessary.
The report does not consider other taxable benefits for the mostdetermination of the annual earnings. The reason is they are likely notknown at the time of running the report.The limit of £8500 is quitelow, thus the probability for employees to earn under this amount andto be provided with a company car at the same time is also quite small.Nonetheless, in the case that an employee earns less the £8500 and isgiven a car, the report will produce all forms anyway as describedabove.
However the employee's annual rate is not explicitly stated on theform, nor is the calculation available on the form how the reportdetermines the employee's annual rate. Finally, the employee's annualbenefit does not include certain benefits (such loans and totalbenefits). Therefore, you are free to manually add in such benefits toan employee's annual rate, then decide whether or not to send the formto the tax authorities (depending on whether or not the annual rate is<> £8500).