How do I exclude/reinstate employees from/into vehicle and mileage benefits?

Modified on Tue, 10 Dec, 2024 at 3:06 PM

You, as the employer, must not deduct more than 50% in tax from an employee’s pay. This is called the Overriding Limit and ensures that employees aren’t left with too little pay to cover their living costs. This limit is automatically imposed where tax is calculated.

In some circumstances a high value benefit or expense, combined with low pay, could mean that the employee takes home little or nothing. This might be where an employee is being paid Statutory Sick Pay. You can keep the employee in payrolling and carry forward the taxable amount of the benefit into future pay periods in that tax year.

However, it is possible to stop payrolling benefits for this employee by excluding the employee from payrolling using the HMRC online service. In this case, it is necessary to submit a manual P11D for the employee detailing any untaxed benefits received by the employee during the year.

Within Cintra iQ, to stop calculating payrolled vehicle benefits for this employee, you can exclude the employee from the Payrolled Benefit calculations.

Important:

You must inform HMRC which employees are to be excluded before you exclude them within Cintra iQ. For more information, visit https://www.gov.uk./

How do I excluded employees?

Go to Cintra iQ: Menu bar > Expenses and Benefits > Expenses Setup > Payrolled Benefits > Vehicles and Mileage
Click on the Excluded Employees tab.
Click New. The Excluded Employee form appears.
Select the desired Employee.
Enter the From & To date.

Note:

The To date signifies the date you want to re-start calculating the employee's payrolled vehicle benefits. It may not be in the same tax year as the From date and should only be set once the P11D is submitted to HMRC.
Click the OK button. The employee is excluded from receiving payrolled vehicle/fuel/mileage benefits. If the employee was paying payrolled benefits prior to the exclusion, the payrolled benefit and its value is removed from their payslip.

How do I re-instate excluded employees?

Important:

You can only reinstate an excluded employee in the year following the submission of the P11D for the tax year the exclusion was made. This is done via the Payroll Benefits section of the HMRC website.

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