Last week, we reported how HMRC was changing the tax treatment of double cab pickup trucks from July 1st 2024, recategorising from a van to a car.
All changes are now off! In a sudden U-turn by the Government and HMRC, the proposed changes have been scrapped and will no longer be implemented. Read the full HMRC statement here.
What Does This Mean For Me?
- The tax on the benefit-in-kind will now not increase when employers provide a double cab pickup truck to employees. That is, an Isuzu D-Max DL40 double cab pickup under the van BIK rules for 2024/25 will result in a BIK of £3,960. If fuel is supplied, then there will be an extra BIK of £757.
- The capital allowances available in the first year of use will now not be reduced when a business purchases a double cab pickup truck for use in their trade. That is, 100% relief in the year of purchase.
- The VAT position remains the same (and was not affected by the proposed HMRC changes). That is, the VAT on the purchase of a van can be reclaimed if it is supplied to a VAT-registered business and used for the purposes of their business. If the intended use of the van is for private purposes, then the full amount of VAT incurred would not be reclaimable, and it would need to be apportioned.
The government says it has listened carefully to views from farmers and the motoring industry on the potential impacts of the change in tax-treatment. The decision not to implement the changes has been made so as to continue to support business.
You can now breathe easily and consider your new Isuzu Pickup from Crawfords, safe in the knowledge there are no nasty tax increases around the corner!
E&OE