Double cab pickups have long been a popular choice for many businesses in the UK, especially in the farming and construction sectors. These vehicles are known for their off-road capabilities and load-carrying capacity ...
The Government just performed a screeching u-turn so double cab pickups are still considered vans and are not cars!
For over two decades, double cab pickups have been classified as vans for company car tax purposes, resulting in lower tax rates for employers and consumers. However, this was set to change on the 1st of July 2024, when these vehicles were to be brought in line with the company car tax regime.
"But the Government just performed a screeching u-turn!"
The original change in tax treatment came after a Court of Appeal ruling, which stated that modified vans should be treated as cars for VAT purposes. This prompted HMRC to update its guidance, stating that most, if not all, double cab pickups will be classified as cars for benefit-in-kind tax purposes from 1 July 2024. This is because these vehicles are often used as passenger cars and have no predominant suitability for carrying goods.
But after just a week of outrage by organisations for farmers, trades and the motoring industry in general, the Government u-turned and scrapped the updated guidance meaning double-cab pickups will be treated as vans for the foreseeable future.
It has also been confirmed by HMRC that capital allowances for the first year of use will not be reduced when a business purchases a double cab pickup for use in their trade!
However, HMRC has confirmed that the update is only for double-cab pickups with a payload of one tonne or more so those with less than one tonne will continue to be treated as cars, as they were before.
The changes in UK tax law were set to come into effect on the 1st of July 2024, but I'm pleased to say that they will now not be happening.
Until next time ...
HELEN BEAUMONT
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the tax status of double cab pickups, it may be a great idea to give me a call on 01908 774323 and let's see how I can help.
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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