Can a pick-up be a perfect company car?
When looking for a new company car, pick-up vans may not appear as the traditional choice, however they certainly have their advantages!
New pick-up van - advantages as company cars
No major pick-up van tax changes
If was feared before the Budget 2017 that double-cab pick-up van taxes may rise, with many believing that HMRC may alter the new van status, however the recent 2017 budget eradicated these fears when it was announced that there would be no major changes to taxes for new van owners and operators. The advantages to owning a new pick-up van hence remain as prudent as they have always been.
That's not strictly saying that there were no van taxation increases, as road tax (VED), benefit-in-kind (BIK) and fuel benefit tax rates are all poised to increase in the 2018/2019 taxation year, albeit by a marginal amount in the scheme of things.
Flat-rate benefit in kind tax for pick-up vans
Double-cab pick-up vans with a one-tonne payload are considered light commercial vehicles (LCVs) on the whole and hence they are taxed differently to traditional company cars, with BIK tax set at a flat rate completely regardless of CO2 emissions or price of the vehicle. For the 2017/2018 tax year, pick-up van BIK tax is fixed at £3,230, therefore if you pay 20% tax it would equate to £646 a year. This figure is set to increase to £3,350 for the 2018/2019 tax year, which would equate to £670 a year, an increase of £24 annually for a 20% tax payer.
Drivers of company cars are also taxed on private-use fuel paid for by their employer and once again pick-ups can benefit from significant savings here. For the 2017/2018 tax year the taxable benefit amount is £610 and hence you'll be taxed at 20% or 40% of this figure. This figure is also set to increase for the 2018/2019 tax year to £633, differing in classification from conventional company cars which is a set rate of £22,600 for the current tax year. This is then multiplied by the BIK tax percentage of the car and your own salary taxation band, the same way company car tax is calculated.
In Layman's terms, more often than not choosing a pick-up van works out as a cheaper option.
New pick-up vans continue to grow is popularity and one reason being this is their practicality on the whole, with most models offering significant load volumes in conjunction with towing capacities between 3 tonnes and 3.5 tonnes! Double-cab pick-ups are also becoming more comfortable and refined than ever before, with many offering excellent levels of comfort regardless of whether you're driving off-road or cruising down the motorway.
New pick-up van finance
Looking for a new pick-up van? You've come to the right place! At Vansdirect we have fantastic offers on brand new pick-ups in our January sales, with TOP SPEC pick-up vans from ONLY £159pm and cheap van finance options to suit your needs, including: van leasing, contract hire and hire purchase. Call us on 0845 021 0444 or submit your details online for a free quote on a new van, we also offer cars!