Pickups losing their commercial vehicle status

[Glanza]

Pick-ups face huge tax hike as they lose commercial vehicle status | Autocar

Any double-cab pick-up truck bought from 1 July 2024 will be affected by changes to benefit-in-kind rules

www.autocar.co.uk

Double-cab pick-up trucks are set to lose their status as commercial vehicles when it comes to paying company car tax.

Massive changes to the benefit-in-kind (BIK) rules will mean that company car drivers will face a near-fivefold increase in personal tax bills for any such pick-up purchased from 1 July 2024.

Currently, any pick-up that meets the criteria of having a payload of more than 1000kg (or 1045kg with a hardtop installed) is considered a commercial vehicle.

This is in line with the current VAT rules, allowing business users 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 suitable for private use and therefore a car.

Due to favourable VAT and BIK taxation, the UK is one of the largest markets in Europe for pick-up trucks.

The Ford Ranger is the country’s best-selling example, with 18,679 registrations for a 45.5% market share in 2023.

The most popular Wildtrak variant with a 2.0-litre diesel engine has a basic list price of £47,220 including VAT. Under the new rules, its 230g/km CO2 emissions place it in the top BIK taxation group of 37%.

A 20% taxpayer in England will therefore have to pay £291 per month and a 40% taxpayer £582 per month in BIK tax for having it as a company car.

This compares to a flat rate of just £60 per month for 20% taxpayers or £120 per month for 40% taxpayers at present.

There are exceptions that will mean any double-cab pick-up that's permanently modified to make it suitable for commercial use by removing the seats and fittings (as well as replacing the rear glass with fibreglass or metal panels) will still be considered as a commercial vehicle.

The rules won't be backdated to cover employees currently driving pick-ups as company cars, and any purchases, leases or orders placed before 1 July won't be subject to the new rules.

Owners will then have until the lease expires, the vehicle is sold or 5 April 2028 to continue to pay the existing BIK tax rates.

Of the pick-ups currently on the UK market, the KGM Musso, Maxus T90EV and Volkswagen Amarok don't offer a single-cab variant.

Might stop the influx of people buying Ford Rangers / Raptors for the school run especially the latest model that can't be far off the size of the American version.

 

[Semple]

Good really.

 

[Hagar]

Very good really. Not all these women can be builders or garden contractors driving past at ten to nine and back at three.

 

[Nasher]

Some of these are just too big for UK roads.

The government should be setting VED to encourage people to buy smaller cars again, not trying to price old ones off the road. Weight and length should be a factor.

 

[One More Solo]

This is excellent news, these things are bloody ridiculous and nearly every single one around here is liveried up for some company. They are far, far too big for U.K. roads and other infrastructure.

 

[Reuben klang]

I’m on the fence with this one.

On one hand, you’ve got virtually every farmer with one now. Show up to any united auctions and you’ll see that. They’re perfect farm vehicles and for working out in the sticks. The only other alternative is a defender which is x2 the price!

I do agree they’re massive though. Ford are away to bring out a PHEV ranger as well.

 

[One More Solo]

I’m on the fence with this one.

On one hand, you’ve got virtually every farmer with one now. Show up to any united auctions and you’ll see that. They’re perfect farm vehicles and for working out in the sticks. The only other alternative is a defender which is x2 the price!

I do agree they’re massive though. Ford are away to bring out a PHEV ranger as well.

If they’re modified for commercial use then they’re still fine. This is targeting businesses with no real need for them that just want a practical personal car without paying for it.

 

[Rroff]

Only affects those getting them through work, at this point no changes to VED status, etc. on personal purchasing.

I do agree they’re massive though.

Most of the UK ones aren't actually that large - width wise similar through to about 10cm wider than the average car, about 20-40cm longer than a saloon or estate. (Compared to the full size US ones which can be 20% wider).

Gonna be weird how they are going to be classified as a car for some purposes but still considered a van for the purpose of kerb weight in respect to speed limits.

 

[panthro]

Great news. I know so many limited company contractors who exploited this. Double parked body kitted ford rangers at the office car park, that's never seen a hard days in their life, much like their owner.

 

[b0rn2sk8]

Farmers etc should not be impacted unless they give it to themselves as a company car for personal use.

If it’s a business vehicle used for business purposes only, it’s not a company car.

 

[Rroff]

I always find it interesting how pickups provoke a reaction either positive or negative :s

 

[BUDFORCE]

I liked pickups like 20 years ago when they were not ridiculously huge.

 

[b0rn2sk8]

I always find it interesting how pickups provoke a reaction either positive or negative :s

No different to EVs

I used to live near a US airbase and the full sized F150’s are huge but rangers etc. are not really any different to the biggest cars or smaller vans.

 

[Mr_Sukebe]

It’s worth calling out that it’s not ALL, pickups, only the double-cabs, which makes sense, as why would you buy a double cab to put concrete in the back.

I’m definitely in favour of this as pickups in our area seem to be driven by some of the most selfish prats around.

Do they all still have leaf springs? I drove one in Malaysia a few years ago, terrible body control at any speed

 

[Rroff]

Do they all still have leaf springs? I drove one in Malaysia a few years ago, terrible body control at any speed

Mixed but most newer than approx 2014 have coils (or an option for it), my D40 Navara has leaf springs, but generally rides OK.

 

[MrKnifey]

The Raptor and Top Spec Amarok are classed as a car anyways, I've been looking into buying a Ranger through the business for a while as it does help VAT and Corporation Tax wise, but it's pretty impractical for me.

 

[sovietspybob]

That's really good news that's long overdue.

I know a few people with double cab pickups, one is a good friend and a farmer and he uses it as intended as a pickup. I'm sure he'll just buy the single cab version next time or a double cab without back seats and windows as for him it is a tool for farm work.

Otherwise there are a couple of people in my village with pickups. One builder who uses it as a family car as he has a proper builders van for the actual business, the pickup bed is still pristine. And another guy who owns a small haulage business, again uses it as him and his wife's personal car and has never seen a days 'work' in its life.

 

[lordrobs]

It was a legitimate tax dodge that the HMRC has now decided to close. EV company car drivers watch your backs...

 

[Yaayuh!]

Weight and length should be a factor.

That's what she said.

 

[.:MBK:.]

bring on the return of the single cabs, and utes while they are at it. always had a soft spot for the older smaller pickups over these newer tanks anyway.