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camelman

Member Since: 27 Feb 2013
Location: Peak District
Posts: 3373

double cab pickup car tax is back..

In case anyone hadn't spotted it, the change in tax from 'van' to 'car' for benefit in kind is coming back in next April....

https://www.fleetnews.co.uk/news/double-ca...mpany-cars

6th Nov 2024 7:27am

Brendon

Member Since: 15 Aug 2021
Location: Saint Albans
Posts: 2

2012 Defender 110 Puma 2.2 DCPU Aintree Green

How will this affect private users?

6th Nov 2024 9:54am

TexasRover

Member Since: 24 Nov 2022
Location: Paris
Posts: 1084

2002 Defender 110 Td5 DCPU Chawton White

Isn't the concept that cars that can be used exclusively as company (goods) vehicles should get lower taxation to support businesses?

So if you have a van or pickup with only two front seats it would be difficult to use it to for anythign else such as to ferry your family around. Why then would a double cab pickup qualify for this discount, because it has a bucket on the back? mhhh

Sound more like the car industry (and their end business users) bending the rules solely for their benefit and by extension to the determent of all those people paying duly their share.

6th Nov 2024 10:01am

camelman

Member Since: 27 Feb 2013
Location: Peak District
Posts: 3373

Brendon wrote:
How will this affect private users?

If the double cab is owned privately by an individual, they won't be affected.

A large number of double cabs are currently bought by business and provided to employees or company directors as 'company vans'. This means they avoid a significant company car tax (up to a 3rd of the value of the vehicle) and instead pay tax on the 'van benefit' which is just under £4k. The business can also pay for all of the diesel used (inc private use) and the driver is taxed on approximately £600 benefit a year.
The fuel benefit if a business pays for 'company cars' fuel is enormous.

The other tax advantage is that a business can currently write 100% of the value of a 'van' off in the first year against profits. Company cars are only allowed a certain percentage per year.

The previous government tried this but bottled it at the last minute.

6th Nov 2024 11:27am

camelman

Member Since: 27 Feb 2013
Location: Peak District
Posts: 3373

I'm also assuming that this will apply to 110/130 double cabs as well....

6th Nov 2024 11:34am

blackwolf

Member Since: 03 Nov 2009
Location: South West England
Posts: 17443

2007 Defender 110 Puma 2.4 DCPU Stornoway Grey

Yes, it will.

camelman wrote:
Brendon wrote:
How will this affect private users?

If the double cab is owned privately by an individual, they won't be affected.

A large number of double cabs are currently bought by business and provided to employees or company directors as 'company vans'. This means they avoid a significant company car tax (up to a 3rd of the value of the vehicle) and instead pay tax on the 'van benefit' which is just under £4k. The business can also pay for all of the diesel used (inc private use) and the driver is taxed on approximately £600 benefit a year.
The fuel benefit if a business pays for 'company cars' fuel is enormous.

The other tax advantage is that a business can currently write 100% of the value of a 'van' off in the first year against profits. Company cars are only allowed a certain percentage per year.

The previous government tried this but bottled it at the last minute.

The only people I feel sorry for are those who bought a DCPU vehicle for genuine need, the majority of new(ish) ones now on the road have been chosen solely for tax avoidance (NB avoidance, not evasion, because it is wholly legal) reasons, and however callous it may sound for them I have not one iota of sympathy.

A couple of years ago I attended the funeral of a friend who worked for decades at the local Ford dealership. The funeral was well-attended by his former colleagues from the dealership and from the parent chain to which it belonged. There were something like 80 Ford Rangers in the car park (and only about 15 normal cars) and it was imemdiately apparent that every "company car" was a Ranger, and not a single one gave the slightest indication of being a working pickup, they were just used as four-seater cars with a big boot.

No wonder that our new sympathetic caring government has closed the loophole, but pity the poor sod who genuinely needs one for work purposes.

6th Nov 2024 12:53pm

90 Dreamer

Member Since: 13 Jul 2019
Location: Oop North
Posts: 2165

2016 Defender 90 Puma 2.2 HT Corris Grey

"if" you can show it is parked at commercial premises and not taken to a Home Address I believe its still a "proper" commercial for tax purposes.........

6th Nov 2024 2:28pm

pjm-84

Member Since: 12 Apr 2021
Location: Hampshire
Posts: 662

Yes...case history on this.

6th Nov 2024 2:44pm

CarMan

Member Since: 29 Nov 2010
Location: Cotswolds
Posts: 1862

Since the new legislation

Rob

1993 200tdi 90 hard-top
1998 300tdi 90 soft-top
2016 2.2 XS 90 hard-top (sold)

6th Nov 2024 3:06pm

Shroppy

Member Since: 25 Feb 2016
Location: Shropshire
Posts: 866

1986 Defender 130 V8 Petrol HCPU Aintree Green

I can't find a great deal on this... am I right in thinking that:

1. If a company were to buy a 'double cab' pre April 2025, they can still use the current capital allowance treatment, i.e. 100% write off?

2. If it is used solely for business purposes, it will still be exempt from BIK? 1985 127 V8 Build Thread
Series 2 109"
Series 1 80"

6th Nov 2024 3:09pm

pjm-84

Member Since: 12 Apr 2021
Location: Hampshire
Posts: 662

CarMan wrote:
Since the new legislation

Way too soon....but the case history would apply, as its the BIK argument

6th Nov 2024 3:14pm

custom90

Member Since: 21 Jan 2010
Location: South West, England.
Posts: 20441

BEWARE

Just to raise awareness see this article:
Click Here.
It is off topic, but I thought I’d share on the down low so people are aware without it being conspicuous.
That kind of thing has been going on a while, but stay vigilant wherever you are.

$W33T $0U7H3RN $UG4R
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6th Nov 2024 3:21pm

lightning

Member Since: 23 Apr 2009
Location: High Peak, Derbyshire
Posts: 2840

lf buying as a company vehicle you can carry the cost forward in tax benefits for instance if the van is £60,000 and your taxable income is £30,000 you generate a loss in the business that year so it's carried forward to the next year.

You can also claim a refund of corporation tax for the preceding year if you want. When l bought my Defender Commercial l benefitted from the "Super Deduction" scheme so have paid no corporation tax for three years.

You can of course also claim back the VAT although not being VAT registered couldn't do that.

This is why the Defender Commercial is so popular and there's still a waiting list.

17th Dec 2024 8:09am

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