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 from April 2009 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.

Employers expressed concern regarding this measure and HMRC have been working with a small group to determine how to resolve this.

Unfortunately changes will not be made for the current tax year, so P46 (Car) replacement company car notifications for 2010/11 still won't be accepted.

But from April 2011 employers will be able to notify HMRC electronically of any replacement car changes. The paper form P46 (Car) won't be changed, so only electronic notifications of replacement company cars will be accepted.

Further guidance is available at http://www.hmrc.gov.uk/paye/exb/overview/emp-provided-cars.htm