More tax trouble on the way for farmers? Oh and anyone else in business thinking of buying a pick-up truck – builders, plumbers, joiners etc……sole traders, partnership or companies!
As of 1 April 2025 for Corporation Tax and 6 April 2025 for Income Tax, double cab pick-up will be treated as cars for the purposes of capital allowances, Benefit-in-Kind (BIK), and certain deductions from business profits.
The good news is that the VAT treatment of double cab pick-ups remains unchanged. HMRC will continue to treat double cab pick-up vehicles as goods vehicles for VAT purposes as long as they have a minimum of one-tonne payload, enabling businesses to reclaim tax paid in accordance with the standard regulations.
The previous government had attempted to introduce the same change once before. On 12 February 2024, HMRC announced that their interpretation of the legislation concerning the favourable tax treatment of pick-up trucks would be altered starting from 1 July 2024. However, just a week later, HMRC determined that the proposed change from July 2024 would impact businesses and individuals in a way that does not align with the broader objectives of the government. Well, until now!
