Sage allows you tick the box of “No Approved CO2’ when entering the Car details for the P46 Benefit-In-Kind for all Fuel Types except Electric Only. I understand the reasoning behind this as there wouldn’t be any CO2 emissions on a fully electric car but for HMRC reporting purposes, irrespective of the car type, if a car is or is not applicable to CO2 emissions, the box should have the ability to tick or untick. Due to this admin error, HMRC inflated the tax to be recovered for 2 of my employees on the payroll by reducing the taxable allowance significantly simply because CO2 was charged on this when it should’ve have been. I think Sage should have the coding mapped in such a way where irrespective of what variable is implemented for the Car benefit.
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