I can recommend a defender hardtop, if three seats is enough. The top end pickups are just as expensive now.
It’s not a single cab it still has seats in the back so is classed as a twin cab. Same tax rules apply. Only way round it is a proper single cab. Although I’m not sure on the classification of ‘car dervived vans’ such as disco / defender commercials .Does anyone know the tax status of the extended cab pickups with the bench seat in the rear?
Three seats would be useful on occasion here. What else on the market can off that?I can recommend a defender hardtop, if three seats is enough. The top end pickups are just as expensive now.
Presumably there will be a spike in demand pre rule change which will exaserbate the fall off afterwards.Likewise
From what I can tell the car derived van isn’t being affected so plenty more disco / defender commercials will be sold id imagine.Three seats would be useful on occasion here. What else on the market can off that?
Not much bar a Berlingo van or Transit etcThree seats would be useful on occasion here. What else on the market can off that?
So the pickup industry will not lobby against this for now, as will enjoy the spike in demand, then lobby for a reversal in 2025Presumably there will be a spike in demand pre rule change which will exaserbate the fall off afterwards.
Nothing. It’s that simple.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 .
I do not believe that your interpretation is correct. Or that the article’s interpretation is necessarily correct for that matter. What the article says isLooking 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.
I do not believe that your interpretation is correct. Or that the article’s interpretation is necessarily correct for that matter. What the article says is
Impact on VAT
HMRC have not amended the definition of a van for VAT purposes. A van for VAT purposes continues to be a vehicle with a payload over one tonne.
The VAT on purchase of a van can be reclaimed if it is supplied to a VAT registered business and it is used for the purposes of their business. HMRC view any incidental private use of commercial vehicles as de-minimis.
If the intended use of the van is for private purposes over the de-minimis threshold, then the full amount of VAT incurred would not be reclaimable and it would need to be apportioned.
Effect on Capital Allowances
HMRC have not commented on the effect of this classification for capital allowance purposes. The definition for capital allowances follows that of employment tax and therefore, it would be expected that HMRC will consider double cab pickups as cars for capital allowance purposes from 1 July 2024. The effect of this is that a capital allowance claim will be restricted from 100% relief in the year of purchase to 6% relief every year.
Except that it doesn’t. They are separate. Just as the classification for road tax may differ for a single vehicle. A primary example is the Ineos Grenadier which is classified as a car by HMRC but as a commercial vehicle in some variants by the DVLA. HMRC have only commented and ruled upon the tax on the employee’s private use thus far and, in blue above, it is confirmed that the VAT status remains as for a commercial vehicle . There is no change unemployment tax [BIK] for the self employed or for pool vehicles.
HMRC have commented on it. Read my following post.I do not believe that your interpretation is correct. Or that the article’s interpretation is necessarily correct for that matter. What the article says is
Impact on VAT
HMRC have not amended the definition of a van for VAT purposes. A van for VAT purposes continues to be a vehicle with a payload over one tonne.
The VAT on purchase of a van can be reclaimed if it is supplied to a VAT registered business and it is used for the purposes of their business. HMRC view any incidental private use of commercial vehicles as de-minimis.
If the intended use of the van is for private purposes over the de-minimis threshold, then the full amount of VAT incurred would not be reclaimable and it would need to be apportioned.
Effect on Capital Allowances
HMRC have not commented on the effect of this classification for capital allowance purposes. The definition for capital allowances follows that of employment tax and therefore, it would be expected that HMRC will consider double cab pickups as cars for capital allowance purposes from 1 July 2024. The effect of this is that a capital allowance claim will be restricted from 100% relief in the year of purchase to 6% relief every year.
Except that it doesn’t. They are separate. Just as the classification for road tax may differ for a single vehicle. A primary example is the Ineos Grenadier which is classified as a car by HMRC but as a commercial vehicle in some variants by the DVLA. HMRC have only commented and ruled upon the tax on the employee’s private use thus far and, in blue above, it is confirmed that the VAT status remains as for a commercial vehicle . There is no change unemployment tax [BIK] for the self employed or for pool vehicles.
Ol‘ Bill will only catch you if you don’t have correct insurance.Well yes that’s the long and the short of it. If you don’t use it for personal and leave it at work there’s no BIK tax attached. But if the ol’ bill catch you at the school gate or Tesco technically insurance is invalid etc… I fear allot of people are suddenly realising how cushy they’ve had it with the farm supplying a nice truck to go out in on weekends and all these lot who ‘don’t get paid bugger all’ are suddenly going to come unstuck.
That’s what will happen, and exactly what I do. My disco is for work only! But I might have to go for a work trip to Cornwall for a week or call in for supplies for the office in Sainsbury’s.Had a meeting this morning with someone from another industry. He turned up in a top of the range Ranger . I asked him if he had heard about this furore, he replied no, but it would not affect him as he never used his truck for private work. I laughed as I pointed out his seating was most unusual or did he employ child labour
I think the key is having a privately owned vehicle available for your personal use that you can point to if asked the question.That’s what will happen, and exactly what I do. My disco is for work only! But I might have to go for a work trip to Cornwall for a week or call in for supplies for the office in Sainsbury’s.
Do you currently pay any benefit in kind tax and declare the fact you use it personally?I'm confused. X2 pickups. Husband and wife business partnership contract shepherding and ag contracting. Will this effect us? They are the only vehicles we have and don't want or need another. My Isuzu has just turned 5yrs old at 25k on the clock. They both have canopy's on. 1 fitted out with dog partions the other a fuel tank in back.
Can we still use these for local school run and shopping days out etc? Have 2 young kids, had a car and the dust from the dogs effected our youngest.
Does this mean we have to have a car for private use?
When you replace them, you will not be able to do the same as you previously did , in terms of capital allowancesI'm confused. X2 pickups. Husband and wife business partnership contract shepherding and ag contracting. Will this effect us? They are the only vehicles we have and don't want or need another. My Isuzu has just turned 5yrs old at 25k on the clock. They both have canopy's on. 1 fitted out with dog partions the other a fuel tank in back.
Can we still use these for local school run and shopping days out etc? Have 2 young kids, had a car and the dust from the dogs effected our youngest.
Does this mean we have to have a car for private use?
If I swap 1 of them this tax year. Was only thinking about it the other day as Ive seen an in stock Isuzu. Would that create a problem?When you replace them, you will not be able to do the same as you previously did , in terms of capital allowances
No, so kids got to walk now then? Joking obviously. So to be correct we need another vehicle for such uses or pay benefit in kind in the tiny milage we do? Everyone always jokes the small milage we do on trucks but tractors and gators do far far more.Do you currently pay any benefit in kind tax and declare the fact you use it personally?
I’m suspecting you don’t so don’t worry and carry on as you are. you only use your trucks for Buisness remember!