Support road.cc

Like this site? Help us to make it better.

Articles on the tax incentives for buying pick up trucks?

I can't find any articles questioning the UK's (and maybe other countries'?) tax incentives for buying these vehicles. The pick ups I see aren't being used for carrying building materials, they just look like they're being used as company cars. I'm surprised there isn't more questioning of the policy, unless I've missed something? 

Thanks to AidanR for this summary under the Road.cc article "SUVs more dangerous [...] "

"The tax benefits are threefold when purchased as a company vehicle:

1) Much lower benefit in kind rates for employees and employers than cars, which aren't linked to CO2 emissions.

2) Ability to recover VAT paid, unlike cars. In theory VAT recovery for a doublecab pick-up should be apportioned for private use, although how often that happens in practice I don't know.

3) 100% relief against corporation tax in the year of purchase, rather than 18% or 8% per year for a car."

    

If you're new please join in and if you have questions pop them below and the forum regulars will answer as best we can.

Add new comment

38 comments

Avatar
bikeman01 | 5 months ago
0 likes

Re 2 - VAT can be reclaimed if the car is used solely for business. 

None of what your complaining about affects company purchasing decisions since 99% of vehicles are leased to companies.

Avatar
andystow | 5 months ago
3 likes

I propose that any brand new pickup truck being registered as a work vehicle must not be permitted to leave the dealership without five minutes of scuffing up the bed with 80 grit paper on a random orbit sander.

Avatar
Hirsute | 5 months ago
6 likes
Avatar
chrisonabike replied to Hirsute | 5 months ago
3 likes

Hoorah!  Hard-working entrepreneurial mothers on benefits (e.g. Baroness Mone*) will be able to get their kids to school and keep the NHS running without fear of financial ruin from unelected civil servant jobsworths policing capricious government sumptuary laws (is this right?)

* Apologies - think she favours a different kind of expansive vehicle.

Avatar
don simon fbpe replied to chrisonabike | 5 months ago
2 likes

Quote:

“It was tough,” she says. “It became an unhappy marriage, so I compensated by buying diamonds, expensive holidays and cars. I bought a lot of cars.”

We've all been there, sweetheart.

Avatar
Left_is_for_Losers replied to Hirsute | 5 months ago
0 likes

Hirsute wrote:

WITHDRAWN https://www.gov.uk/government/news/update-on-hmrc-double-cab-pick-up-gui... More wankpanzers

Excellent news, welcome relief for the hard-working people of Britain. 

Avatar
ROOTminus1 replied to Hirsute | 5 months ago
3 likes

Which lobby has a vice grip on Nigel Huddleston's testicles so tight he's willing to ditch the presumably months of work to get the ammended guidance in place, before sacking it off the very next Monday morning?

Spineless, disgusting waste of time, money and oxygen

Avatar
bikes replied to Hirsute | 4 months ago
0 likes

Wow, how disappointing. The flood of massive, subsidized pick-ups continues.

Avatar
don simon fbpe | 5 months ago
2 likes

It's a weird one, car manufacturers cottoned on to the loophole and started manufacturing the 4 door, luxury trim with a useless tray and muppets were content driving pick up trucks on leaf springs with no payload.

One of the most pointless trucks out there, stick to a 2 door or extracab.

Avatar
Hirsute | 5 months ago
8 likes

Loophole to be closed from July 24

https://www.autocar.co.uk/car-news/consumer/pick-ups-face-huge-tax-hike-...

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.

Avatar
ktache replied to Hirsute | 5 months ago
4 likes

Excellent.

Avatar
wtjs replied to Hirsute | 5 months ago
5 likes

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

Hope it's true, but it won't have any effect in Lancashire where the pickups like WU59 UMH have gone completely 'off-grid' with the agreement of Lancashire Constabulary

Avatar
andystow replied to Hirsute | 5 months ago
3 likes

Hirsute wrote:

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.

That reminds me of the US loophole, where Ford used to import (to the US) Transit vans built in Turkey with rear seats installed, then strip them before selling them as work vans. That's because there is a 25% tariff on cargo vans, but only 2.5% on passenger vans.

Avatar
Bigtwin | 6 months ago
3 likes

I worked for a guy who had one of these.  He wanted a plain estate car, but the idiot tax rules make this a no-no.  Someone needs to get a grip.

Avatar
bikes | 6 months ago
4 likes

Can anyone make an argument in favour of the policy? Did the government ever reveal the  reasoning behind it? Would a petition questioning the policy likely get enough traction for 10,000 signatures?

Avatar
wtjs replied to bikes | 6 months ago
5 likes

Can anyone make an argument in favour of the policy?

The beneficiaries of the policy certainly can! Apparently, these vehicles are exempt from MOT, insurance and VED although I think you still have to pay for the petrol

Avatar
wycombewheeler replied to wtjs | 5 months ago
0 likes

wtjs wrote:

Can anyone make an argument in favour of the policy?

The beneficiaries of the policy certainly can! Apparently, these vehicles are exempt from MOT, insurance and VED although I think you still have to pay for the petrol

Really? I thought it was just about VAT or benefit in kind company car tax

Avatar
Hirsute replied to wycombewheeler | 5 months ago
1 like

Surely you have come across wtjs posting about the number of vehicles in his area with none of the above and the police do nothing despite repeated reports to them.

The one in the photo - ved ran out 30 11 17 and mot 6 6 17

Avatar
wycombewheeler replied to Hirsute | 5 months ago
0 likes

Hirsute wrote:

Surely you have come across wtjs posting about the number of vehicles in his area with none of the above and the police do nothing despite repeated reports to them.

The one in the photo - ved ran out 30 11 17 and mot 6 6 17

didn't think that was just specific to crew cab pick ups-though

Avatar
wtjs replied to wycombewheeler | 5 months ago
3 likes

He's still around! Most nights parked for hours outside the pub, 100 yards from Garstang police station. He's certainly free from MOT and VED, although the police haven't yet publicly announced the Lancashire Constabulary charging scheme which gives you a pass to ensure that the police don't trouble you for them- I think it's only LC Specially Approved Customers at the moment

Avatar
wtjs replied to wtjs | 5 months ago
1 like

But LancsFilth are definitely expanding the scheme to respectably large SUVs 

Avatar
wtjs replied to wtjs | 5 months ago
1 like

And VIP Commercial Customers, of course- F3 BDL just by their big showroom on the A6, Preston

Avatar
levestane replied to wtjs | 5 months ago
1 like

wtjs wrote:

He's still around! Most nights parked for hours outside the pub, 100 yards from Garstang police station. He's certainly free from MOT and VED, although the police haven't yet publicly announced the Lancashire Constabulary charging scheme which gives you a pass to ensure that the police don't trouble you for them- I think it's only LC Specially Approved Customers at the moment

MoT failed on the 23rd Sept 23. 

Do not drive until repaired (dangerous defects):

Offside Front Lower Suspension arm ball joint likely to become detached (5.3.4 (a) (ii))
Nearside Front Wheel bearing play so excessive that directional control is impaired (5.1.3 (a) (ii))
Nearside Rear Tyre tread depth below requirements of 1.6mm (5.2.3 (e))

Repair immediately (major defects):

Horn not working (7.7 (a))
Front Windscreen washer not working (3.5 (a))

Monitor and repair if necessary (advisories):

Nearside Front Exhaust has a minor leak of exhaust gases flexy pipe (6.1.2 (a))
Nearside Front Lower Suspension arm ball joint has slight play (5.3.4 (a) (i))

Avatar
wtjs replied to levestane | 5 months ago
2 likes

I'm assuming you're well aware that all this stuff was emphasised to the police  -and Andrew Snowden, Lancashire PCC, when the police were clearly following their Standard Operating Procedure and doing nothing at all, while making no response. Snowden initially said 'nothing to do with me, it's an operational decision of the police', and then began to refuse to reply as well. Note that neither body has offered any explanation like 'he's an undercover police officer' or 'it's a mistake that all his MOTs and VED payments haven't been recorded'. They just don't reply.

Avatar
wtjs replied to levestane | 5 months ago
0 likes

People who the forelock-tugging police consider toffs are automatically inducted into the Lancashire Prestige Club, so they never have to think of MOT for their new vehicle: MF70 VKS

Avatar
mark1a replied to bikes | 6 months ago
2 likes

bikes wrote:

Can anyone make an argument in favour of the policy? Did the government ever reveal the  reasoning behind it? Would a petition questioning the policy likely get enough traction for 10,000 signatures?

The government "policy" as such is just a way of defining commercial vehicles for tax purposes, which is the correct thing to do, otherwise it would be free-for-all on VAT reclaim on ordinary cars. The issue with crew-cab pick-ups being used instead of company cars is what's known as a "loophole". Over the years, the government has sought to discourage this by raising the BIK, it's currently nearly £4k, back in the mid 2000s when the manufacturers started putting more comfortable interiors in them, the BIK was only £500. 

Avatar
bikes replied to mark1a | 6 months ago
5 likes

Ok, thanks. I'm getting a better understanding. An Autoexpress article (2021) seemed to have a good explanation as well. It includes this: "Increasing numbers of company drivers are cottoning-on to the tax advantages of running a cool-looking double-cab pick-up instead of a traditional family car or SUV. So naturally manufacturers who make juicy margins on ‘luxury’ versions of cheap to develop commercial vehicles are doing everything possible to fan the flames of desire." And this table.  

How can this loophole be closed?

Avatar
Bigtwin replied to mark1a | 6 months ago
1 like

Just make it so that if it's owned/leased by a company, it's a company car.  That way people can have estate cars instead of enviornment wrecking trucks, which they have because if you don't have a 1 tonne plus LCV you lose money.  More government stupidity in action.

Avatar
mark1a replied to Bigtwin | 6 months ago
0 likes

Bigtwin wrote:

Just make it so that if it's owned/leased by a company, it's a company car.  That way people can have estate cars instead of enviornment wrecking trucks, which they have because if you don't have a 1 tonne plus LCV you lose money.  More government stupidity in action.

How would you propose the difference in BIK tax between company cars and commercial vehicles?

Avatar
Armchairanarchist | 6 months ago
11 likes

My Pick Up wanker story.
Riding between Rotherham and Sheffield (meadowbank road), relevant because it's about a mile and a half long and lovely and wide with a high speed limit & plenty of time to pass, after the 30mph section with traffic calming islands in the first few hundred yards.

However, Mr big man in his L200 was far too important for that and forced his way past.
There was a loud bang and his truck shook violently. I was fortunate to be wearing AG2R+ replica shorts.
Delightfully, because he was a weapons grade dildo, he had fitted giant alloys with super low profile tyres, which he had just smashed into the center islands. He pulled in at the curry house and as I passed I observed his fancy wheels now looking completely
"unfancy" with the rear one cracked and the front one resembling a Pringle.
I was still laughing when I reached my destination, with occasional bursts of giggles persisting for the next 2 weeks.
Karma seems rare, but when it happens it's marvelous.

Pages

Latest Comments