**HMRC have done a complete u-turn on this**
The original change as detailed in the article below was announced by HMRC on 12th February 2024. By the 20th February 2024 they had done a complete u-turn and returned to the old rules.
It's not unheard of but it is rare. Changes have to go through rigorous processes and usually consultations. There are often details coming out later that clarify the changes but rarely is there a complete u-turn.
They state it was from feedback on the impact of the farming community and motor industry and they have listened to the concerns and cancelled the change.
The full details of the original announcement are below.
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Hey there, fellow road warriors and financial aficionados!
If you're a pickup truck owner cruising the highways and byways of the UK, buckle up because we're about to navigate the twists and turns of the latest tax changes hitting our four-wheeled friends!
Picture this: it's July 2024, and just like a fresh coat of wax on your trusty pickup, the UK government has rolled out some shiny new regulations aimed at shaking up the way we calculate those pesky tax bills. But fear not, because we've got the lowdown on how you can rev up your tax efficiency while still enjoying the ride.
Now, let's talk turkey (or should I say, torque?) about these changes. The powers-that-be have decided it's time to put the pedal to the metal on environmental responsibility. That means they're taking a closer look under the hood of our beloved pickups to see just how green they really are. Emission levels are under the microscope, folks, and those gas-guzzling giants might find themselves in the taxman's crosshairs.
The key change here is that double-cab pickups with a payload more than 1 tonne have come under fire! From 1 July 2024 any double-cab pickup you purchase for your business (bought or leased) will be subject to the new rules. The new rules will increase the tax from zero or close to zero to a benefit-in-kind that is much larger as they are not eco-friendly which is how the tax is calculated and the reason for the sudden shift as the government pushes towards carbon-zero.
But hey, it's not all doom and gloom!
With change comes opportunity, and there are plenty of ways savvy pickup truck owners can steer clear of hefty tax bills.
Want to keep those Benefit-in-Kind (BIK) rates in check? Consider swapping out your diesel-guzzler for a sleek electric model. Not only will you be reducing your carbon footprint, but you'll also be giving your wallet a breather when tax time rolls around.
What if you really need a pickup for your business I hear you say? Well as long as you stick to a single cab type then all will be good. These type are not subject to the changes so you can purchase that pickup and still get the same deal.
Also if double-cab is really what you need then simply make your purchase prior to 1 July 2024 and you'll get the old rules extended until 5 April 2028 at least giving you some time to work out a viable alternative.
No doubt the car manufacturers will be exploring the rules far more closely and seeing how they can build new models that get around the rules as sales are bound to fall. So watch this space for new pickups that revolutionise this section of the market.
As your friendly neighbourhood accountant and automotive enthusiast, I'm here to help you navigate the hairpin turns of these tax changes with a smile on your face and a few extra quid in your pocket. Whether you're a lone wolf freelancer or a fleet manager with a convoy of pickups at your command, there's a tax-efficient solution out there with your name on it.
So, let's rev those engines, folks, and hit the road with confidence! With a little bit of know-how and a whole lot of horsepower, we'll leave those tax woes in the dust and cruise toward a brighter, greener future behind the wheel of our trusty pickups.
Happy trails, my fellow road warriors!
