Government Reverses Plans to Reclassify Double-Cab Pick-Ups As Cars
08/03/2024 09:29 Share
Government Reverses Plans to Reclassify Double-Cab Pick-Ups As Cars
The U-turn came just one week after HMRC announced that double-cab pick-ups would be classified as cars for tax purposes, following a review.
- The proposal was announced on February 12th, to close the so-called ‘loophole’ allowing drivers to enjoy lower taxes.
- The Government announced from July 1st, double-cab pick-ups would be classed as cars when calculating tax payments.
- However, the proposal was highly criticised by affected motorists, who believed it was unfair. Over a week later, the Government has now rescinded plans following complaints.
On February 12th 2024, HMRC - the government’s tax and customs authority - announced a change in tax classification for double-cab pick-ups. A week later, the decision has now been revoked after it was highly contested.
Read on for all you need to know, including how you can continue to benefit from leasing a crew cab pick-up at Vansdirect.
What were the proposed changes?
Historically, double-cab pick-ups with payloads over 1,000kg have been classed as goods vehicles. This was mainly for tax purposes in order to allow drivers to benefit from lower tax rates.
However, since they can be used for transporting both goods and passengers, it was argued they should be reclassified as cars.
It follows a case in the Court of Appeal back in 2020, in which the HMRC won a case against Coca-Cola over classifying their five-seater vans.
What would this have meant for drivers?
If the decision had not been revoked, this would have meant drivers would face significantly higher taxes than before.
Using the Ford Ranger Wildtrak 2.0 as an example, Professional Pickup calculated the astronomical costs this would cause. They discovered that a driver of this vehicle would have to pay £290 a month, or £580 for those on a higher tax rate.
Overall, this would have made company car tax payments soar by as much as £5,376 a year.
Why was the proposal abandoned?
After conversing with the likes of farmers who rely on these vehicles for their livelihood, HMRC saw the light.
They decided to scrap plans in order to support businesses in the motoring and farming sectors, in line with the Government’s wider aims.
It means that double-cab pick-ups will not be classed the same as cars, saving drivers from higher taxes. A particular benefit to those in the agriculture and farming industry.
Benefits of leasing a crew cab pick-up
Interested in leasing a crew cab pick-up for your business? As well as lower tax rates, here are some of the other benefits you can enjoy at Vansdirect:
- Competitive prices with our van leasing deals.
- Flexible finance options to help spread the costs.
- Access to our additional services such as maintenance, fuel cards, racking and security.
- Specialist support from our team of experts when choosing your van.
- A wide selection of models from top manufacturers including Ford, Isuzu, Toyota, and Volkswagen.
Shop new pick-ups for sale at Vansdirect
Ready to drive your business forward? Explore our latest pick-up vans for sale below. If you need help during your search, get in touch with our friendly team.
With thousands of happy customers nationwide, we’re confident we can help you find the perfect van for your needs.
Shop new pick-up trucks for sale
Related Articles
Here’s Why You Should Consider A New Pick-up: Pros, Cons, and The In-Betweens
5 Reasons To Buy A New Ford Ranger Pick-up
Ford Ranger Wildtrak 2023 – Up Close and Personal
Latest vans in stock
Vauxhall Vivaro L1 Diesel 1.5 Turbo D 120 Prime H1 Van
- Air Conditioning
- Rear Parking Sensors
Ford Transit Custom 300 L2 Diesel Fwd 2.0 EcoBlue 136ps H1 Van Limited
- Air Conditioning
- Alloy Wheels
- Heated Seats
Renault Kangoo L2 Diesel LL21 Blue dCi 95 Advance [Safety] Van
- Air Conditioning
- Multimedia System with Touchscreen
Renault Trafic Lwb Diesel LL30 Blue dCi 150 Extra [Safety] Van
- Air Conditioning
- Keyless Start
- Multimedia System with Touchscreen
Maxus Deliver 9 Lwb Diesel Fwd 2.0 D20 150 High Roof Van
- Air Conditioning
- Apple Car Play/Android Auto
- Front + Rear Parking Sensors
- Reversing Camera
Citroen Berlingo M Diesel 1.5 BlueHDi 100ps 1000kg Van Enterprise
- Air Conditioning
- Rear Parking Sensors
Renault Trafic Swb Diesel SL30 Blue dCi 130 Advance [Safety] Van
- Air Conditioning
- Front + Rear Parking Sensors
- Multimedia System with Touchscreen
Citroen Relay 3500 L2 Diesel 2.2 BlueHDi 140 H2 Van Enterprise
- Air Conditioning
- Rear Parking Sensors
Ford Ranger Diesel Pick Up Double Cab Wildtrak 2.0 EcoBlue 205 Auto
- Alloy Wheels
- Reversing Camera
- Sat Nav
Citroen Dispatch M Diesel 1.5 BlueHDi 120ps Van Enterprise
- Air Conditioning
- Rear Parking Sensors
Peugeot Boxer 3500 L3 Diesel 2.2 BlueHDi 140 H2 Van Professional
- Air Conditioning
- Apple Car Play/Android Auto
- Rear Parking Sensors
Citroen Berlingo E-M 100kW 52kWh 800kg Van Enterprise Auto
- Air Conditioning
- Rear Parking Sensors
Citroen Relay 3500 L3 Diesel 2.2 BlueHDi 140 H2 Van Enterprise
- Air Conditioning
- Rear Parking Sensors
Ford Transit 350 L2 Diesel Fwd 2.0 EcoBlue 165ps H2 Leader Van
Land Rover Defender 90 Diesel 3.0 D250 Hard Top S Auto
- Alloy Wheels
- Multimedia System with Touchscreen
Renault Kangoo L1 Diesel ML19 Blue dCi 95 Extra Van
- Air Conditioning
- Automatic Headlights
- Multimedia System with Touchscreen