Date posted: 20th Jan 2025
As we have reported previously (https://www.cliveowen.com/2024/11/double-cab-pick-up-taxtreatment/) different tax rules will apply to double cab pick-ups from April 2025.
The upshot of the changes means that individuals will pay more personal tax for using the vehicle and the employer will pay more national insurance. In addition, the tax relief given for businesses (via the capital allowances regime) acquiring such vehicles will be spread over a longer period, rather than given in the year of acquisition.
However, there may be a window of opportunity to obtain such vehicles now.
Rather than re-invent the wheel (pun intended), example 1 at https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca23511 explains how a vehicle delivered after April 2025 may still obtain the 100% allowance in the year of acquisition but the window is closing.
Similarly, from an employment tax perspective, examples 2 and 4 at https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23151 explain that the old rules may still apply, even after April 2025.
However, the time to consider such measures is now. Please bear in mind that there is likely to be a demand for such vehicles, so if you are going to change vehicles, it would be better to contact the dealerships sooner rather than later.
If you have any queries, please do not hesitate to contact us.
