Double-cab pick-up vehicles are set to lose their standing as business autos on the subject of paying firm automobile tax.
Large modifications to the benefit-in-kind (BIK) guidelines will imply that firm automobile drivers will face a near-fivefold improve in private tax payments for any such pick-up bought from 1 July 2024.
At the moment, any pick-up that meets the standards of getting a payload of greater than 1000kg (or 1045kg with a hardtop put in) is taken into account a business automobile.
That is in step with the present VAT guidelines, permitting enterprise customers to reclaim tax on vans and pick-ups.
From 1 July, HRMC will abandon the payload-based definition and deem any pick-up with a second row of seats as appropriate for personal use and subsequently a automobile.
Because of beneficial VAT and BIK taxation, the UK is among the largest markets in Europe for pick-up vehicles.
The Ford Ranger is the nation’s best-selling instance, with 18,679 registrations for a 45.5% market share in 2023.
The hottest Wildtrak variant with a 2.0-litre diesel engine has a fundamental checklist value of £47,220 together with VAT. Beneath the brand new guidelines, its 230g/km CO2 emissions place it within the prime BIK taxation group of 37%.
A 20% taxpayer in England will subsequently must pay £291 per thirty days and a 40% taxpayer £582 per thirty days in BIK tax for having it as a firm automobile.
This compares to a flat price of simply £60 per thirty days for 20% taxpayers or £120 per thirty days for 40% taxpayers at current.
There are exceptions that may imply any double-cab pick-up that is completely modified to make it appropriate for business use by eradicating the seats and fittings (in addition to changing the rear glass with fibreglass or metallic panels) will nonetheless be thought-about as a business automobile.
The foundations will not be backdated to cowl staff at the moment driving pick-ups as firm vehicles, and any purchases, leases or orders positioned earlier than 1 July will not be topic to the brand new guidelines.
House owners will then have till the lease expires, the automobile is bought or 5 April 2028 to proceed to pay the present BIK tax charges.
Of the pick-ups at the moment on the UK market, the KGM Musso, Maxus T90EV and Volkswagen Amarok do not supply a single-cab variant.
