Creating
a Company Car (Infotype 0442) Record
Scenario
An employee is provided with a company car in the current tax year, which is also available for private use. It is supplied with automatic transmission as standard and has a sunroof fitted as an optional extra. The list price with standard accessories, including VAT, number plates, and delivery is GBP 18,855. The list price of the optional sunroof (which is not included in the car's list price) is an additional GBP 450.
The employee pays GBP 50 towards the car each month, and the employer pays all the fuels costs for the company car.
Procedure
1. From the infotype Company Car (0442) screen, create a new infotype record for the employee.
The system defaults in the validity period of the infotype 0442 record, with a start date as the current system date and an unlimited end date (31.12.9999). You can amend these dates, as required.
You normally create the infotype 0442 record with this unlimited end date, as it is not clear at the time you create the record when the employee will return the car.
2. Enter the make and model of the car, its registration date, license plate number, and CO2 emissions value
3. Enter the following price and benefit data:
q GBP 18,855 in the list price field
q GBP 450 in the accessories field
q GBP 50 in the regular payments field
The system then calculates the car price automatically.
If available in your SAP system, you can also select the show benefit calculation option, and display a full taxable benefit value calculation for the company car.
4. In the additional information section, set the fuel scale charge indicator if the fuel for the employee’s company car is paid for by the employer.
You must also record in this section if:
1. A company car running on diesel has met the EURO 1V Ultra Clean standard
2. The car is a bi-fuel vehicle (Gas and Petrol ) which only had an approved CO2 emission figure for petrol at first registration
5. Save your entries.
Result
An infotype Company Car (0442) record is created. This allows the Payroll component to estimate Class 1A National Insurance contributions, and make the correct deductions from the employee's earnings for use of the car.