You may remember the fiasco of a few months ago where it was announced by the then Conservative government that the beneficial tax treatment around Double Cab Pick Ups was to be scrapped – with classification of the vehicles for tax as cars rather than vans. A crazy couple of days and this then got reversed back to the original treatment.
So where are we at now?
Back to the direction of travel the previous government wanted to go in, with the removal of this treatment and to treat Double Cab Pick Ups with a payload of more than a tonne as cars for tax purposes.
The Ford Ranger is one of the most popular pick up trucks in the UK, with each double cab model having a payload of over one tonne – these vehicles will be affected.
These changes come into effect from April 2025.
This is a key change for business owners as this will affect the treatment of capital allowances, benefits in kind and some deductions from business profits.
However, employers who have purchased, leased or ordered a vehicle before 6th April 2025 will be eligible to use the previous system until their lease ends, discarding the vehicle or up to 5th April 2029 – whichever happens first.
Our tip for Business Owners
If you are looking to purchase a vehicle through your business always assess the figures as to whether it is better to own personally or put through the company. There is more than one tax to consider with this decision but also other factors in terms of access to finance deals and credit.
We’ll watch with eager eyes as to whether we see another U-turn on this policy!
