Tag Archives: Doublecab

News

Tax hike for pick-ups reversed by UK authorities

One week on from proposed new company car taxes for double-cab pick-up vehicles HMRC has scrapped the plans.

Company automobile scheme customers who purchased or leased a double-cab pick-up truck had been as a result of see the benefit in kind (BIK) funds sky rocket below proposals introduced on 12 February, however in a dramatic U-turn after criticism from farmers and the motor trade it has reversed its determination.

HRMC had introduced that they’d not take into account double-cab pick-up trucks as industrial autos, as their second row of seats allowed them to have a twin perform as a private car.

The change to firm automobile tax BIK for double-cab pick-up vehicles was as a result of be applied on all new purchases or leases from 1 July 2024, and would have meant house owners not paid a flat fee of BIK for all industrial autos and as a substitute be taxed utilizing the emissions-based system used for passenger vehicles.

Double-cab pick-up house owners would due to this fact seemingly have been lumbered with the very best 37% fee of BIK because of the excessive CO2 emissions of most pick-up vehicles.

In a press release, HMRC stated “its existing guidance will be withdrawn” and that double-cab pick-ups would “continue to be treated as goods vehicles rather than cars”. As a outcome, “businesses and individuals can continue to benefit from its historic tax treatment”.

The preliminary determination was as a result of a ruling within the Court of Appeal that said multi-purpose autos like pick-up vehicles are passenger vehicles, after HMRC received a case towards Coca-Cola over the classification of five-seat vans.

The repercussions of that ruling had meant that the tax “loophole” permitting pick-up vehicles to be classed as industrial autos was forged into doubt, threatening the excessive quantity of gross sales for pick-up vehicles within the UK.

Despite the change of coronary heart, nevertheless, it’s going to solely have an effect on double-cab pick-ups with a payload of multiple tonne. Double-cab pick-ups with payloads under 1000kg, just like the Ford Ranger Raptor, will proceed to be classed as passenger vehicles.

News

Pick-ups face large tax hike as they lose business automobile standing

Double-cab pick-up vehicles are set to lose their standing as business autos in relation to paying firm automotive tax.

Massive modifications to the benefit-in-kind (BIK) guidelines will imply that company car drivers will face a near-fivefold enhance in private tax payments for any such pick-up bought from 1 July 2024.

Currently, any pick-up that meets the factors of getting a payload of greater than 1000kg (or 1045kg with a hardtop put in) is taken into account a business automobile.

This is consistent with the present VAT guidelines, permitting enterprise customers to reclaim tax on vans and pick-ups.

From 1 July, HRMC will abandon the payload-based definition and deem any pick-up with a second row of seats as appropriate for personal use and due to this fact a automotive.

Due to beneficial VAT and BIK taxation, the UK is likely one of the largest markets in Europe for pick-up vehicles.

The Ford Ranger is the nation’s best-selling instance, with 18,679 registrations for a 45.5% market share in 2023.

The hottest Wildtrak variant with a 2.0-litre diesel engine has a primary listing value of £47,220 together with VAT. Under the brand new guidelines, its 230g/km CO2 emissions place it within the high BIK taxation group of 37%.

A 20% taxpayer in England will due to this fact must pay £291 per 30 days and a 40% taxpayer £582 per 30 days in BIK tax for having it as a firm automotive. 

This compares to a flat charge of simply £60 per 30 days for 20% taxpayers or £120 per 30 days for 40% taxpayers at current.

There are exceptions that can imply any double-cab pick-up that is completely modified to make it appropriate for business use by eradicating the seats and fittings (in addition to changing the rear glass with fibreglass or steel panels) will nonetheless be thought-about as a business automobile.

The guidelines will not be backdated to cowl staff at the moment driving pick-ups as firm vehicles, and any purchases, leases or orders positioned earlier than 1 July will not be topic to the brand new guidelines.

Owners will then have till the lease expires, the automobile is offered or 5 April 2028 to proceed to pay the prevailing BIK tax charges.

Of the pick-ups at the moment on the UK market, the KGM Musso, Maxus T90EV and Volkswagen Amarok do not supply a single-cab variant.