From April 2011 employers will be able to notify HMRC electronically if an employee is provided with a replacement company car.
HMRC announced last year that employers no longer had to submit form P46 (Car) for replacement company car changes and that from April 2010 forms P46 (Car) relating to replacement company car changes would no longer be accepted.
A number of employers expressed concern regarding this measure and HMRC have been working with a small group to determine how to resolve this.
No changes will be made for the current tax year, so P46 (Car) replacement company car notifications for 2010-11 will not be accepted by HMRC.
From April 2011 employers will be able to notify HMRC (only electronically) of any replacement car changes.