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The government has U-turned on a plan to classify double-cab pick-ups as cars for tax purposes.
HM Revenue & Customs (HMRC) announced on February 12 that it would close the ‘loophole’ that allowed double-cab pick-ups that can carry payloads over 1,000kg to be classed as goods vehicles for tax purposes.
It said that from July 1, 2024, “most if not all double-cab pick-ups will be classified as cars when calculating the benefit change” due to these vehicles being “equally suited” to both transporting goods and passengers.
Owners of these vehicles were set to face significantly higher tax bills as a result.
Professional Pickup calculated that from July 2024 a driver using a Ford Ranger Wildtrak 2.0 as a company car would face a tax bill of £290 a month, or £580 a month for a higher rate taxpayer. It meant a driver could end up spending £5,376 more on company car tax per year under the rules.
However, just seven days on from announcing the plan, the government has scrapped it and has confirmed it will not be introducing the change. In a statement, HMRC said it had “listened carefully to views from farmers and the motoring industry on the potential impacts of the change in tax-treatment”.
Full story HERE
HM Revenue & Customs (HMRC) announced on February 12 that it would close the ‘loophole’ that allowed double-cab pick-ups that can carry payloads over 1,000kg to be classed as goods vehicles for tax purposes.
It said that from July 1, 2024, “most if not all double-cab pick-ups will be classified as cars when calculating the benefit change” due to these vehicles being “equally suited” to both transporting goods and passengers.
Owners of these vehicles were set to face significantly higher tax bills as a result.
Professional Pickup calculated that from July 2024 a driver using a Ford Ranger Wildtrak 2.0 as a company car would face a tax bill of £290 a month, or £580 a month for a higher rate taxpayer. It meant a driver could end up spending £5,376 more on company car tax per year under the rules.
However, just seven days on from announcing the plan, the government has scrapped it and has confirmed it will not be introducing the change. In a statement, HMRC said it had “listened carefully to views from farmers and the motoring industry on the potential impacts of the change in tax-treatment”.
Full story HERE
