15/02/2024
HMRC CLOSES LOOPHOLE THAT SAVES DRIVERS THOUSANDS IN CAR TAX.
Drivers who use pick-up trucks for work and personal use are set to pay more in car tax under changes being brought in by the Government.
From July double-cab pickup trucks will be classed as cars rather than vans, bringing an end to a tax loophole that has saved drivers money.
Double-cab pickups, such as Ford Ranger and Nissan Navara, have grown in popularity in recent years because their dual purpose attributes mean they are suitable for being a working vehicle as well.
Any double-cab pickup that had a payload of more than a tonne was considered a van and therefore, attracted far cheaper company car tax.
Under changes from July, commercial pickup trucks will be classed as cars not vans - putting an end to a quirk allowing significant 'benefit-in-kind' (BIK) tax breaks.
Due to the favourable tax relief, sales of dour-door pickups have significantly grown in the past decade, with employees using the trucks for the dual purpose of both work and pleasure.
Tax will be calculated on the cost and carbon dioxide emissions of the vehicle, which for gas-guzzling pickups will result in much higher charges.
So under the new changes, all new pickups whether purchased, leased or ordered as company vehicles will have much higher tax implications.
