Crew cab pickups to be taxed as cars from July

[john 650]

There’s no loophole there. Unless you have paid and not reclaimed the VAT you are basically cheating the taxman of his VAT. Lot’s have done it but that doesn’t make it legal. It might depend on whether you have glazed second row doors, but since Grenadier don’t qualify for VAT I suspect that neither does yours after conversion.

The commercial vehicle with aftermarket seats is not a loop hole- its, well, let's just say, at the risk of offending, it depends on the "flexibility" of your accountant's approach...

VAT men are rarely flexible if caught though, and that's before the insurance ramifications of a modified vehicle. Plenty of them about mind, and risk is a personal choice I suppose...

 

[PI Stsker]

It’s not a loophole , it’s flat out in breach of their regulations (which I disagree with) and come a vat inspection or similar , you will be caught . This was the case long before this weeks ruling .

If you really want to get pee'd off I don’t pay any BIK tax either as i only use it for work 🫢

 

[PI Stsker]

Mike Butler

Tax rules to hit twin cab pick ups. Message, call or email for PROACTIVE advice 07458064162 [email protected] PKF-Francis Clark #twincabpickups #farming #ruraltax

www.facebook.com

quite simply explained..:

 

[Exfarmer]

The commercial vehicle with aftermarket seats is not a loop hole- its, well, let's just say, at the risk of offending, it depends on the "flexibility" of your accountant's approach...

VAT men are rarely flexible if caught though, and that's before the insurance ramifications of a modified vehicle. Plenty of them about mind, and risk is a personal choice I suppose...

your accountant is nothing to do with it, if you notice all accountants will have a disclaimer in their terms of business

 

[ford 7810]

So my d max and son inlow,s Navara both 2020 reg business vehicles driven by owners namely us for business and private (farmers and contractors) what does it mean for us ? and don’t use abbreviations please they lose me .

 

[Exfarmer]

So my d max and son inlow,s Navara both 2020 reg business vehicles driven by owners namely us for business and private (farmers and contractors) what does it mean for us ? and don’t use abbreviations please they lose me .

basically from 2028 you will have to pay Benefit In Kind on your vehicles depending on value, unless you replace them earlier when the BIK will kick in from then.
Check on the HMRC website for the tax this will cost you
If you have employees who freely share these vehicles and they stay on the farm when not in work you may not have to pay

 

[Andy26]

If it results in fewer tradies' wives on the double yellows at the school gates, in blinged up trucks, it will not be an entirely bad thing.

Or Pick Ups doing 90 in the outside lane, with the driver wishing they had a proper car.

 

[PI Stsker]

So my d max and son inlow,s Navara both 2020 reg business vehicles driven by owners namely us for business and private (farmers and contractors) what does it mean for us ? and don’t use abbreviations please they lose me .

Ask your self this, do you currently pay benefit in kind tax to use the truck for personal, or is it declared as a work truck only and free to use, but you do the odd cheeky school run and the odd shopping trip because who’s to know.
If you currently pay benefit in kind tax, that will be going up massively, if you don’t pay any benefit in kind currently then don’t worry it won’t affect you.

 

[john 650]

Ask your self this, do you currently pay benefit in kind tax to use the truck for personal, or is it declared as a work truck only and free to use, but you do the odd cheeky school run and the odd shopping trip because who’s to know.
If you currently pay benefit in kind tax, that will be going up massively, if you don’t pay any benefit in kind currently then don’t worry it won’t affect you.

This is correct. If you, or an employee currently pay BIK on a pick up/commercial vehicle, on their PAYE, then they will be paying more.

If there's no BIK paid currently, then there's no change from the existing rule.

 

[john 650]

your accountant is nothing to do with it, if you notice all accountants will have a disclaimer in their terms of business

That's ok then, there's no issue with you paying them for telling you bulls**t then, as the disclaimer covers all. Everyone's happy...

 

[TheRanger]

Looking into this further, it will actually have an effect on self employed farmers.

VAT can still be reclaimed on the purchase price of a new double cab pickup. 100% if 100% business use, 80% if 80% business use, etc - as is the case currently.

But double cab pickups will now be classified as cars for capital allowance purposes, so instead of being able to offset 100% of the purchase cost against tax in year 1, you'll only be able to offset 6% per year. Which is actually quite a big hit?

HMRC's U-turn on Tax Treatment of Double Cab Pick Ups

HMRC announced a reversal to its recent guidance on the treatment of double cab pickups (DCPUs) from 1 July 2024.

www.moore.co.uk

I always quite liked the extended cab pickups, does anyone know if they are classed as double cabs or single cabs for tax purposes? I'd assume single cab as the rear is a bench seat? They might become more common now if so.

 

[essex man]

Looking into this further, it will actually have an effect on self employed farmers.

VAT can still be reclaimed on the purchase price of a new double cab pickup. 100% if 100% business use, 80% if 80% business use, etc - as is the case currently.

But double cab pickups will now be classified as cars for capital allowance purposes, so instead of being able to offset 100% of the purchase cost against tax in year 1, you'll only be able to offset 6% per year. Which is actually quite a big hit?

HMRC's U-turn on Tax Treatment of Double Cab Pick Ups

HMRC announced a reversal to its recent guidance on the treatment of double cab pickups (DCPUs) from 1 July 2024.

www.moore.co.uk

It doesn't say that.
It says "expected"

 

[TheRanger]

It doesn't say that.
It says "expected"

This is what the HMRC website says:

"Expenditure incurred on or after 1 July 2024
For expenditure incurred on or after 1 July 2024 HMRC will no longer interpret the legislation that defines a car for capital allowances purposes as excluding double cab pick-ups with a payload of one tonne or more. Section 268A(1)(b), which defines a car as a vehicle other than one of a construction primarily suited for the conveyance of goods or burden of any description, will be interpreted in accordance with the guidance at CA23510. It follows that most, if not all, double cab pick-ups, which are equally suited to convey passengers or goods, will be classified as cars under this provision."

Updated yesterday

 

[B R C]

Ask your self this, do you currently pay benefit in kind tax to use the truck for personal, or is it declared as a work truck only and free to use, but you do the odd cheeky school run and the odd shopping trip because who’s to know.
If you currently pay benefit in kind tax, that will be going up massively, if you don’t pay any benefit in kind currently then don’t worry it won’t affect you.

You are allowed to personal trips if it incidental to your journey so ok to pop in to shops if they are on the way home or drop kids off at school if you have an ongoing journey.

 

[essex man]

This is what the HMRC website says:

"Expenditure incurred on or after 1 July 2024
For expenditure incurred on or after 1 July 2024 HMRC will no longer interpret the legislation that defines a car for capital allowances purposes as excluding double cab pick-ups with a payload of one tonne or more. Section 268A(1)(b), which defines a car as a vehicle other than one of a construction primarily suited for the conveyance of goods or burden of any description, will be interpreted in accordance with the guidance at CA23510. It follows that most, if not all, double cab pick-ups, which are equally suited to convey passengers or goods, will be classified as cars under this provision."

Updated yesterday

Yes, just read that elsewhere.
You have til 01/01/25 i think..under a transitional arrangement

 

[B R C]

This is what the HMRC website says:

"Expenditure incurred on or after 1 July 2024
For expenditure incurred on or after 1 July 2024 HMRC will no longer interpret the legislation that defines a car for capital allowances purposes as excluding double cab pick-ups with a payload of one tonne or more. Section 268A(1)(b), which defines a car as a vehicle other than one of a construction primarily suited for the conveyance of goods or burden of any description, will be interpreted in accordance with the guidance at CA23510. It follows that most, if not all, double cab pick-ups, which are equally suited to convey passengers or goods, will be classified as cars under this provision."

Updated yesterday

What if it is effectively a pool car that anyone on the farm is insured to drive for business use?

 

[TheRanger]

What if it is effectively a pool car that anyone on the farm is insured to drive for business use?

That doesn't really matter from a capital allowances point of view I believe.

 

[essex man]

This is what the HMRC website says:

"Expenditure incurred on or after 1 July 2024
For expenditure incurred on or after 1 July 2024 HMRC will no longer interpret the legislation that defines a car for capital allowances purposes as excluding double cab pick-ups with a payload of one tonne or more. Section 268A(1)(b), which defines a car as a vehicle other than one of a construction primarily suited for the conveyance of goods or burden of any description, will be interpreted in accordance with the guidance at CA23510. It follows that most, if not all, double cab pick-ups, which are equally suited to convey passengers or goods, will be classified as cars under this provision."

Updated yesterday

This is a pita for me, reclaiming the vat and writing off in one year was a double incentive.
Sales, demand and prices will suffer

 

[TheRanger]

This is a pita for me, reclaiming the vat and writing off in one year was a double incentive.
Sales, demand and prices will suffer

Likewise

 

[TheRanger]

Does anyone know the tax status of the extended cab pickups with the bench seat in the rear?