 | Home > Off Topic > This is gonna hurt! VAN / Double Cab Benefit changes.. |
 
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373  
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 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 |
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13th Feb 2024 4:24pm |
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| CarMan Member Since: 29 Nov 2010 Location: Cotswolds Posts: 1862
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Good spot, thanks for sharing Rob
1993 200tdi 90 hard-top 1998 300tdi 90 soft-top 2016 2.2 XS 90 hard-top (sold) |
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13th Feb 2024 4:48pm |
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| Welshsurferdude Member Since: 23 Feb 2012 Location: Newport Posts: 2413 
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booming market in any pick up made up to then then!
  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) |
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13th Feb 2024 6:57pm |
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| diesel_jim Member Since: 13 Oct 2008 Location: hiding Posts: 6093 
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Glad my HiLux is a private vehicle then
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13th Feb 2024 7:01pm |
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373
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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. |
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14th Feb 2024 7:54am |
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| blackwolf Member Since: 03 Nov 2009 Location: South West England Posts: 17443 
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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.
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14th Feb 2024 8:47am |
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| Farmerben Member Since: 16 Jan 2017 Location: Herefordshire Posts: 605 
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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 |
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14th Feb 2024 9:26am |
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373
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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.
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14th Feb 2024 9:27am |
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| custom90 Member Since: 21 Jan 2010 Location: South West, England. Posts: 20441
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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 🇬🇧🏴🏴🏴🇮🇪🇺🇸⛽️🛢️⚙️🧰💪 |
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14th Feb 2024 1:07pm |
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373
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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! |
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14th Feb 2024 1:56pm |
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| blackwolf Member Since: 03 Nov 2009 Location: South West England Posts: 17443
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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.
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.... |
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14th Feb 2024 2:08pm |
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373
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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.
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14th Feb 2024 2:12pm |
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| blackwolf Member Since: 03 Nov 2009 Location: South West England Posts: 17443
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Perhaps that's the intention.
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14th Feb 2024 6:18pm |
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| markb110 Member Since: 22 May 2010 Location: Guildford Posts: 2643  
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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. |
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15th Feb 2024 11:18am |
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