Car Tax on Double Cab Pick Up Trucks
Discussion
If this vehicle is for his sole private use (&work)then he would pay tax on it as described above.
If he elects to only take home when needs be, then can elect to opt for £5 per night taxable benefit instead.
i.e 10 nights in tax year = 10 x £5.00 = £50.00, benefit @ 22% = £11.00 tax to pay, or at 40% = £20.00
It's your call, otherwise you could treat it as a pool vehicle and nobody has private use.
If he elects to only take home when needs be, then can elect to opt for £5 per night taxable benefit instead.
i.e 10 nights in tax year = 10 x £5.00 = £50.00, benefit @ 22% = £11.00 tax to pay, or at 40% = £20.00
It's your call, otherwise you could treat it as a pool vehicle and nobody has private use.
At the moment, there is a significant difference in the way "commercial vehicles" are treated for Income Tax Benefit in Kind purposes compared to "Motor Cars".
As most of you now know, the BIK on a motor car is based on the vehicle's list price coupled with a percentage based in the vehicles official CO2 emissions levels. There is an additional BIK charged when private fuel is paid for by the employer.
The current BIK on vans is a flat annual charge of £500 (MUCH cheaper than the BIK on motor cars). The BIK reduces to £350 when the vehicle is over 3 years old. The BIK is also time apportioned if the van was not available to the employee or director for the whole of the tax year.
From 6 April 2007 the BIK on vans is increasing to £3,000.
My assumption is that pickups are treated like vans, rather than cars.
As most of you now know, the BIK on a motor car is based on the vehicle's list price coupled with a percentage based in the vehicles official CO2 emissions levels. There is an additional BIK charged when private fuel is paid for by the employer.
The current BIK on vans is a flat annual charge of £500 (MUCH cheaper than the BIK on motor cars). The BIK reduces to £350 when the vehicle is over 3 years old. The BIK is also time apportioned if the van was not available to the employee or director for the whole of the tax year.
From 6 April 2007 the BIK on vans is increasing to £3,000.
My assumption is that pickups are treated like vans, rather than cars.
Eric Mc said:
At the moment, there is a significant difference in the way "commercial vehicles" are treated for Income Tax Benefit in Kind purposes compared to "Motor Cars".
As most of you now know, the BIK on a motor car is based on the vehicle's list price coupled with a percentage based in the vehicles official CO2 emissions levels. There is an additional BIK charged when private fuel is paid for by the employer.
The current BIK on vans is a flat annual charge of £500 (MUCH cheaper than the BIK on motor cars). The BIK reduces to £350 when the vehicle is over 3 years old. The BIK is also time apportioned if the van was not available to the employee or director for the whole of the tax year.
From 6 April 2007 the BIK on vans is increasing to £3,000.
My assumption is that pickups are treated like vans, rather than cars.
Not if they are a crew cab pick up, i.e. with two rows of seats. They are a car unless thay have a 1 tonne payload.
Is that a VAT rule or an Income Tax/Corporation Tax rule?
From my knowledge of tax legislation, the Inland Revenue nowhere actually define what a motor car really is. On the other hand, Customs and Excise are very particular as to what constitutes a motor car compared to a van.
Edited to add that the latest "benefit in Kind" guide issued by the Inland Revenue states that "Double Cab pickups are classified as cars or vans in line with their treatment for VAT by HM Customs and Excise". That, in itself, does not mean that a double cab pickup is always a van - or indeed, always a car. Typical unclear guidance from the Revenue.
This seems to indicate that the Inland Revenue are adopting the more precise definitions of cars and vans as set out in the VAT legislation. However, that seems to relate only to Benefits in Kind rules. I will need to do a spot of research to see if a similar procedure has been adopted regarding Capital Allowances.
>> Edited by Eric Mc on Thursday 11th November 19:32
From my knowledge of tax legislation, the Inland Revenue nowhere actually define what a motor car really is. On the other hand, Customs and Excise are very particular as to what constitutes a motor car compared to a van.
Edited to add that the latest "benefit in Kind" guide issued by the Inland Revenue states that "Double Cab pickups are classified as cars or vans in line with their treatment for VAT by HM Customs and Excise". That, in itself, does not mean that a double cab pickup is always a van - or indeed, always a car. Typical unclear guidance from the Revenue.
This seems to indicate that the Inland Revenue are adopting the more precise definitions of cars and vans as set out in the VAT legislation. However, that seems to relate only to Benefits in Kind rules. I will need to do a spot of research to see if a similar procedure has been adopted regarding Capital Allowances.
>> Edited by Eric Mc on Thursday 11th November 19:32
Most double cab pickups are designed to carry just over a tonne to be a 'commercial vehicle'.
If, however, you fit the rear canopy thingy there is a suggestion that the weight of these brings the carrying capacity to just below a tonne, and so they can argue that the vehicle then becomes a car.
Quite how they can check this out is beyond me and, equally, you may need a hard top to protect things that you carry as part of the need for a commercial vehicle.
Either way, I believe that we're safe till 2007.
If, however, you fit the rear canopy thingy there is a suggestion that the weight of these brings the carrying capacity to just below a tonne, and so they can argue that the vehicle then becomes a car.
Quite how they can check this out is beyond me and, equally, you may need a hard top to protect things that you carry as part of the need for a commercial vehicle.
Either way, I believe that we're safe till 2007.
Be careful of the spec of the vehicle.
My two brothers got an L200 Animal and SWB Shogun commercial a couple of years ago with all the trimmings....leather, CD, etc. The accountant had to write to the IR explaining why so called commercial vehicles for site work had to have such enhanced spec, after the IR questioned the vehicles being true commercials.
We explained the leather to be essential as it is easier to clean and harder wearing than cloth. The other features were standard, where as the leather was not, so the other bits were not an isssue.
You can explain cruise control as a safety device for long motorway journeys, and the auto box on the Shogun as better for stop /start city driving reducing driver fatigue, hence is safer.
The above may sound silly, but is true!!
>> Edited by MOD500 on Saturday 13th November 17:43
My two brothers got an L200 Animal and SWB Shogun commercial a couple of years ago with all the trimmings....leather, CD, etc. The accountant had to write to the IR explaining why so called commercial vehicles for site work had to have such enhanced spec, after the IR questioned the vehicles being true commercials.
We explained the leather to be essential as it is easier to clean and harder wearing than cloth. The other features were standard, where as the leather was not, so the other bits were not an isssue.
You can explain cruise control as a safety device for long motorway journeys, and the auto box on the Shogun as better for stop /start city driving reducing driver fatigue, hence is safer.
The above may sound silly, but is true!!
>> Edited by MOD500 on Saturday 13th November 17:43
Eric Mc said:
The current BIK on vans is a flat annual charge of £500 (MUCH cheaper than the BIK on motor cars). The BIK reduces to £350 when the vehicle is over 3 years old. The BIK is also time apportioned if the van was not available to the employee or director for the whole of the tax year.
From 6 April 2007 the BIK on vans is increasing to £3,000.
Aye, and as soon as it does, my van is going back, even if I have to resign. I genuinely do need a van for my job; the company has no garage facilities hence I got lumbered with taking the van home; hence it can't be classed as a pool vehicle; hence the revenue caught up with me and I have to pay for the bloody 'privilege'. So let's see: BIK =£3000. At 25%-ish that's £750 per year or £62.50 a month, compared to the tenner a month it is now.
I gather that the age thing is being phased out as well, so the fact that my van will be over 3 years old (and 100K+ miles) won't matter a damn either.
Yeah, that seems fair. Not.
Ian
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