Twin Cab Pick-ups: Uncertainty over future tax treatment.

25th January 2018

 

For many years now, businesses, particularly builders, have provided their staff with twin cab pick-ups, instead of cars, to take advantage of the more generous tax regime. Such vehicles have previously been taxed as a van, resulting in more favourable capital allowances, VAT, NIC and benefit in kind treatments. The distinction between a car and van has previously been based on the following key test:

  • The ability to carry a payload of at least 1,000 Kg (or 1,045 Kg if a back hardtop is fitted). HMRC even provided a list of which vehicles do and don’t qualify as a van: list. In a long running disagreement between HMRC and Coca-Cola, which recently reached the First Tier Tax Tribunal, HMRC won their case that the distinction should be based on a new test:
  • Whether the vehicles were purchased primarily for the transport of goods or of persons. HMRC have yet to clarify whether this Court decision will be applied by them generally (even retrospectively). In the meantime, this uncertainty is not helpful.


 
Other items in Blogs
 
Nick Edgley
3rd July 2020 31 July: Is full amount of income tax payable?

Many taxpayers who are required to file a self-assessment tax return to HM Revenue & Customs should now be preparing for their next half-yearly tax payment which is due by 31st July. The amount payable is the second payment-on-account for the 2019/20 tax year and is automatically calculated as half of the total tax liability…

Read More »

Jaimie King
2nd July 2020 Covid Charity update

Many of the charities we support have been concerned about the impact of Coronavirus, and have understandably had many questions with regards to support and how to manage the charity.   Below is some of the latest government guidance (as of 26th June 2020) with regards to some of the most frequently asked questions that…

Read More »

James Cater
30th June 2020 New electrical safety regulations for all landlords

While the Coronavirus pandemic holds our attention it is easy to overlook other changes taking place in its shadow. From 1 June 2020 new electrical safety regulations have come into force which apply to all new lettings of dwellings; from 1 July 2020 (tomorrow!) the regulations will be extended to cover all existing lettings of…

Read More »

Katharine Bebbington
29th June 2020 Companies House automatically extend year end

On 25 June 2020, the Corporate Insolvency and Governance Act 2020 received Royal assent.  As a result, Companies House have announced that for eligible companies they will automatically extend the filing deadline for 3 months because of Covid-19.  These are for companies with a filing deadline between 26 March 2020 and 29 September 2020.  This…

Read More »

Ernesta Petkeviciute
29th June 2020 Guidance on pension scheme financial reports and audit featuring Covid-19

A joint guidance has been published by ICAS, ICAEW and PRAG on pension scheme financial reports and audit, with a large focus on Covid-19 matters.   The impact of Covid-19 pandemic on the control environment of pension schemes is explored, to help auditors navigate the additional challenges they are likely to experience and help them…

Read More »

Paul Jefferson
26th June 2020 Delaying Import duty and VAT

HMRC have implemented measures to assist businesses that are registered importers who pay VAT and Duty at the time of import and are facing financial difficulties as a direct result of Coronavirus.   What to do if you’re a Duty deferment account holder   You can contact HMRC for approval to enter into an extended…

Read More »