Double cab pick-up van tax may rise
Double cab pick-up van tax will increase if HMRC alters new van status, Vansdirect explains all!
Double cab pick-up vans
When selecting a company van, a double cab pick-up van has certain benefits, primarily a lower tax rate, a recent legal ruling by HMRC may help to clarify the definition of what constitutes a van in regards to tax purposes, in a somewhat grey area, it is crucial that there is clarity.
HMRC official guidelines state that: "a van is a vehicle primarily designed for the movement of goods and that it must be manufactured accordingly. If a vehicle is designed to be multi-purpose or has windows in the side, even if no rear seats are fitted, it is unlikely to be a van."
It is easy to be sceptical of this ruling from HMRC as there are a huge variety of new vans on the market. A judge in the ruling has confused matters further by somewhat contradicting these guidelines: "one van with a second row of seats is a van, another van with a second row of seats is a car."
This ruling contradicts current pick-up van guidelines leaving a number of small businesses and SMEs in the dark about their current tax liabilities. Before these guidelines, HMRC were able to accept that any double cab pick-up with a payload in excess of one-tonne is a van for tax purposes. Whether or not this is still the case remains to be seen!
Double cab pick-up vans are incredibly popular with a variety of different businesses because of their flexibility. During the working week you can fully load them with all your vital tools required for the job, while on the weekend you have room for your family and sports kit. A variety of different tradesmen also use double cab pick-up vans as they offer fantastic amounts of compromise. If double cab pick-up van tax were to change, it would mean that each of the discussed businesses would have to hand over a higher percentage of their income in additional tax.
Even more concerning is that the case presented to the judge relates to the 2011-12 tax year, so any alterations to the guidelines may be dated back to then. It remains to be seen what effect these latest developments will have on double cab pick-up vans!
New van finance
Interested in a new van on finance? At Vansdirect we have a huge range of new vans for sale from all of the major manufacturers, with flexible van finance options depending on your requirements. Choose from van leasing, contract hire and hire purchase to van finance your new van! Call us today on 0845 021 0444 or enquire online and we'll get back to you asap!