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camelman



Member Since: 27 Feb 2013
Location: Peak District
Posts: 3372

United Kingdom 
This is gonna hurt! VAN / Double Cab Benefit changes..

Click image to enlarge


https://www.msn.com/en-gb/cars/news/pick-u...3&ei=3 


Last edited by camelman on 14th Feb 2024 8:01am. Edited 1 time in total
Post #1024624 13th Feb 2024 4:24pm
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CarMan



Member Since: 29 Nov 2010
Location: Cotswolds
Posts: 1860

United Kingdom 
Good spot, thanks for sharing Rob

1993 200tdi 90 hard-top
1998 300tdi 90 soft-top
2016 2.2 XS 90 hard-top (sold)
Post #1024626 13th Feb 2024 4:48pm
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blackwolf



Member Since: 03 Nov 2009
Location: South West England
Posts: 17372

United Kingdom 2007 Defender 110 Puma 2.4 DCPU Stornoway Grey
The article I have just read referred to dual-purpose vehicles not just double-cab pick-ups. I have no idea what the BIK situation is with a Defender but I anticipate wailing and gnashing of teeth if they are currently exempt.
Post #1024641 13th Feb 2024 6:35pm
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Welshsurferdude



Member Since: 23 Feb 2012
Location: Newport
Posts: 2402

Wales 
booming market in any pick up made up to then then! Mr. Green Whistle 2008 Santorini Black 110 XS USW (Sold)

2015 Discovery 4.5 Black pack Firenze red XS

2008 Corris Grey 110 XS USW (sold)

2011 Santorini Black 110 XS USW (Sold)
Post #1024644 13th Feb 2024 6:57pm
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diesel_jim



Member Since: 13 Oct 2008
Location: hiding
Posts: 6092

United Kingdom 2006 Defender 110 Td5 SW Epsom Green
Glad my HiLux is a private vehicle then Very Happy Very Happy
Post #1024645 13th Feb 2024 7:01pm
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camelman



Member Since: 27 Feb 2013
Location: Peak District
Posts: 3372

United Kingdom 
blackwolf wrote:
The article I have just read referred to dual-purpose vehicles not just double-cab pick-ups. I have no idea what the BIK situation is with a Defender but I anticipate wailing and gnashing of teeth if they are currently exempt.


Interesting as the HMRC page (https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23151) only talks about double cab pickups.

I suspect the old USW 110 Defenders will be on thin ice going forward however. The upside is for existing owners it doesn't kick in until 2028. 
Post #1024670 14th Feb 2024 7:54am
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blackwolf



Member Since: 03 Nov 2009
Location: South West England
Posts: 17372

United Kingdom 2007 Defender 110 Puma 2.4 DCPU Stornoway Grey
It's entirely possible that the author of the article doesn't understand that "dual-purpose vehicle" has a specific legal meaning and was using it as a generic (and misleading) term.
Post #1024672 14th Feb 2024 8:47am
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Farmerben



Member Since: 16 Jan 2017
Location: Herefordshire
Posts: 605

United Kingdom 2015 Defender 90 Puma 2.2 HT Keswick Green
Quote:
From 1 July, HRMC will abandon the payload-based definition and deem any pick-up with a second row of seats as suitable for private use and therefore a car.


It appears it's anything with a second row of seats so I guess new commercial Defenders will still be ok but any hopes of the Grenadier pickup being classed as a commercial just vanished. https://instagram.com/bentheoandrews
Post #1024677 14th Feb 2024 9:26am
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camelman



Member Since: 27 Feb 2013
Location: Peak District
Posts: 3372

United Kingdom 
The Grenadier was never going to be classed as a van as its payload isn't anywhere near the required 1000kg, even in double can form. 
Post #1024678 14th Feb 2024 9:27am
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custom90



Member Since: 21 Jan 2010
Location: South West, England.
Posts: 20348

United Kingdom 
I believe it’s something to do with when purchased under business, the purchase VAT paid on new or ongoing payments if not bought outright means the VAT can be discounted or reclaimed.
Or a much reduced percentage of VAT.

Kind of like how subsidised red diesel does / used to work for commercial / Agri / business use only.
Mind you tax on fuel is a joke, I did a quick calculation the other day for Price per litre in the United States vs here. I seem to remember it would be sort of 68p per litre in our currency, yet it’s around £1.50 per litre near me.

We’re paying approx 66% tax on fuel!

Figures I’ve mentioned are approximate and there is room for a lot of error off the top of my head. $W33T $0U7H3RN $UG4R
🇬🇧🏴󠁧󠁢󠁥󠁮󠁧󠁿🏴󠁧󠁢󠁷󠁬󠁳󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🇮🇪🇺🇸⛽️🛢️⚙️🧰💪
Post #1024702 14th Feb 2024 1:07pm
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camelman



Member Since: 27 Feb 2013
Location: Peak District
Posts: 3372

United Kingdom 
Its not VAT but the Benefit in Kind rules that are changing.
Currently if you buy a £45k double cab and run it through the business but allow personal use, the driver gets taxed on the 'Van benefit' which is currently £3960 per year. A 20% tax payer therefore pays £782 per year in extra tax, a 40% tax payer will pay £1564.

All fuel can also be paid for by the business (including personal use) and the driver has another £757 added to their benefit in kind figure.

under the new rules, a double cab will be treated as a car. If used for personal use, the Benefit in Kind will be based on emissions (high) and new price and could be up to 37% of the vehicles value (£45k *.37) = £16650 per year. The income tax paid would therefore be £3300 (20%) or £6600 (40%). In addition, any provision of fuel for personal use in a company car would attract a further Benefit in Kind of £27800! 
Post #1024708 14th Feb 2024 1:56pm
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blackwolf



Member Since: 03 Nov 2009
Location: South West England
Posts: 17372

United Kingdom 2007 Defender 110 Puma 2.4 DCPU Stornoway Grey
The only people this will really hurt are (a) those using a DCPU as a form of tax avoidance, (b) those who genuinely need a DCPU as a company commercial but who can also use it for personal purposes, and (c) the manufacturers.

The second category deserves sympathy. Very Happy

No offence intended to those on here in the first category, noting of course that tax avoidance is both legal and natural.

I wonder how many of the people affected by this chose a DCPU in preference to a Eurobox solely because of the BiK advantage....
Post #1024711 14th Feb 2024 2:08pm
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camelman



Member Since: 27 Feb 2013
Location: Peak District
Posts: 3372

United Kingdom 
Given, the even lower rate of BiK on electric cars, I expect many of those in your first category will now move to an electric vehicle. 
Post #1024712 14th Feb 2024 2:12pm
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blackwolf



Member Since: 03 Nov 2009
Location: South West England
Posts: 17372

United Kingdom 2007 Defender 110 Puma 2.4 DCPU Stornoway Grey
Perhaps that's the intention.
Post #1024732 14th Feb 2024 6:18pm
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markb110



Member Since: 22 May 2010
Location: Guildford
Posts: 2634

England 2002 Defender 90 Td5 HT Epsom Green
Around here in this estate (21 years old now) there is a covenant that excludes the homeowners from parking a van overnight.

This lead to three owners that I am aware of to go over to pickups and move the vans to other employees than didn’t have the same issue.

With all the new estates that are being thrown up left right and centre this must affect others as well.

At the moment what is the alternative, apart from paying the tax, an EV van would still not be allowed overnight around here.
Post #1024788 15th Feb 2024 11:18am
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