Double cab pickup HMRC BIK Changes

[Cut+Squirt]

I'm guessing many of you like myself own or have had a double cab works pick-up that is also used as a family waggon.

You'll probably be aware that up until now they have had pretty advantageous BIK tax classification.

For your information as of July 2024 HMRC are changing the goal posts in respect of this.

All NEW DOUBLE cab pickups will from that date be treated as a PCV other than a light goods vehicle.

The current generous BIK flat rate will be no more.

I'm afraid HMRC are set to squeeze us until we squeak.

 

[Malxwal]

There is another thread running on this.
However, it occurs to me how this affects gamekeepers/stalkers, who live on bugger all more or less anyway. Pretty damned harsh to hit people who actually need these vehicles.

 

[Jh1986]

Transitional arrangements​

While the new tax treatment comes into effect from 1 July 2024, HMRC has said that transitional arrangements will apply for employers that have purchased, leased, or ordered a double cab pickup before this date. This will ensure they can rely upon the previous treatment until 5 April 2028, or if they dispose of the vehicle or the lease expires, if this comes sooner.

 

[25 Sharps]

I'm guessing many of you like myself own or have had a double cab works pick-up that is also used as a family waggon.

You'll probably be aware that up until now they have had pretty advantageous BIK tax classification.

For your information as of July 2024 HMRC are changing the goal posts in respect of this.

All NEW DOUBLE cab pickups will from that date be treated as a PCV other than a light goods vehicle.

The current generous BIK flat rate will be no more.

I'm afraid HMRC are set to squeeze us until we squeak.

But any current are ok to 2028, I’m due a new one but keeping the Amarok as it’s one of the last proper V6s they did so keeping it another 3/4 years

 

[Pard 007]

So how does effect a individual if your pick up is your normal vehicle? Not company / work vehicle?

 

[devon deer stalker]

So how does effect a individual if your pick up is your normal vehicle? Not company / work vehicle?

I am wondering the same as a person not vat registered, which I assume is part of the issue?
I have no idea what the repercussions are for the likes of us, if any?
More road tax?

Just looked up BIK=benefit in kind, so I assume not an issue for us as private use non vat owners...or I might be wrong!

 

[Jh1986]

BIK is the tax on having a company vehicle available for private use. It's generally emissions based, but trucks count as light commercial and so have a fixed BIK rate. If they're now classing them as cars for tax purposes, trucks will be calculated based on emissions like everything else (except electric, because HMRc can't possibly miss out so they tax those on BIK too now).

I just got my company truck. I use it every day for work, and the truck bed is full of work parts so effectively out of bounds for personal use as I can't fit another thing in. The rear seats are full of my more valuable work equipment. Because I take the truck home though, I have to pay BIK as there's a possibility of me personally using the vehicle and HMRC can't possibly have that.

I only got the company vehicle because during lockdown our work drastically changed and I was doing insane miles for the business, with every inch of the car filled with work bits. That basically destroyed my personal vehicle and it was scrapped. Now work are putting it right, HMRC want to sting me

 

[Mickeydredd]

BIK is the tax on having a company vehicle available for private use. It's generally emissions based, but trucks count as light commercial and so have a fixed BIK rate. If they're now classing them as cars for tax purposes, trucks will be calculated based on emissions like everything else (except electric, because HMRc can't possibly miss out so they tax those on BIK too now).

I just got my company truck. I use it every day for work, and the truck bed is full of work parts so effectively out of bounds for personal use as I can't fit another thing in. The rear seats are full of my more valuable work equipment. Because I take the truck home though, I have to pay BIK as there's a possibility of me personally using the vehicle and HMRC can't possibly have that.

So if you can clearly declare no personal use, how are you liable to a BIK tax charge for personal use?

I assume it is the fact you use it to drive to and from work rather than leave it at the work premises, but if you drive straight to jobs from home then there is a clear reason to keep the truck at your home so should not attract BIK charge as you are not "commuting" to and from work.

Or are you captured simply by it having rear seats and there is no flexibility around being captured due to this hard and fast rule?

 

[Jh1986]

So if you can clearly declare no personal use, how are you liable to a BIK tax charge for personal use?

I assume it is the fact you use it to drive to and from work rather than leave it at the work premises, but if you drive straight to jobs from home then there is a clear reason to keep the truck at your home so should not attract BIK charge as you are not "commuting" to and from work.

Or are you captured simply by it having rear seats and there is no flexibility around being captured due to this hard and fast rule?

We have no fixed premises now. Straight to and from the customer, carrying all the parts I may need.

The very fact is has rear seats and I drive it to/from home though, from July, leaves it open to personal use "abuse".

 

[dave 67]

So if your are a sole trader, not VAT registered, then I’m guessing these new rules don’t apply ??

 

[slider]

So how does effect a individual if your pick up is your normal vehicle? Not company / work vehicle?

Doesn't. You have paid and not reclaimed the VAT on it and BIK doesn't apply.

.BUT, the logical next step is for VED to be emissions based as cars are, and not the flat commercial rate

 

[Malxwal]

Doesn't. You have paid and not reclaimed the VAT on it and BIK doesn't apply.

.BUT, the logical next step is for VED to be emissions based as cars are, and not the flat commercial rate

Wouldn't that then have to be extended to transit vans etc with additional rows of seats ? Let's hope they see some sense..

 

[Jh1986]

Wouldn't that then have to be extended to transit vans etc with additional rows of seats ? Let's hope they see some sense..

It's those that started it. I think it was Coca-Cola that had an investigation from HMRC and it was deemed that the company transit vans that had the extra row of seats, were being used in place of cars as a tax loophole. It went to court and Coca-Cola lost so HMRC are now going after similar vehicles based upon that

 

[long_range_rob]

So if you can clearly declare no personal use, how are you liable to a BIK tax charge for personal use?

I assume it is the fact you use it to drive to and from work rather than leave it at the work premises, but if you drive straight to jobs from home then there is a clear reason to keep the truck at your home so should not attract BIK charge as you are not "commuting" to and from work.

Or are you captured simply by it having rear seats and there is no flexibility around being captured due to this hard and fast rule?

My company has a zero personal use policy but I park at home, therefore HMRC require a tax charge for use to/from your place of work even though I have no fixed headquarters

 

[Dickie]

This only comes in for new vehicles purchased after the July though doesn't it?
Only for people who have one as a company vehicle.

 

[Mickeydredd]

My company has a zero personal use policy but I park at home, therefore HMRC require a tax charge for use to/from your place of work even though I have no fixed headquarters

madness!

 

[25 Sharps]

BIK is the tax on having a company vehicle available for private use. It's generally emissions based, but trucks count as light commercial and so have a fixed BIK rate. If they're now classing them as cars for tax purposes, trucks will be calculated based on emissions like everything else (except electric, because HMRc can't possibly miss out so they tax those on BIK too now).

I just got my company truck. I use it every day for work, and the truck bed is full of work parts so effectively out of bounds for personal use as I can't fit another thing in. The rear seats are full of my more valuable work equipment. Because I take the truck home though, I have to pay BIK as there's a possibility of me personally using the vehicle and HMRC can't possibly have that.

I only got the company vehicle because during lockdown our work drastically changed and I was doing insane miles for the business, with every inch of the car filled with work bits. That basically destroyed my personal vehicle and it was scrapped. Now work are putting it right, HMRC want to sting me

If it is completely excluded from personal use you won’t pay benefit in kind though.

 

[25 Sharps]

My company has a zero personal use policy but I park at home, therefore HMRC require a tax charge for use to/from your place of work even though I have no fixed headquarters

I’m not sure that is correct.

 

[Skietindiekop]

My company has a zero personal use policy but I park at home, therefore HMRC require a tax charge for use to/from your place of work even though I have no fixed headquarters

If you park at home but have a workplace then BIK is payable as commuting to an office is not work.
If you work from home as your place of work and commute to various customer sites then you have no tax to pay unless you and your employer agree to opt in for private use and therefore pay the BIK.
The insurance inspectors for example Zurich and Allianz have cars and all work from home as base. Opting out of private use is allowed as their employer specifically says (as they are the underwriters) that any unauthorised private use is also without insurance and gross misconduct. HMRC cannot argue this.
Speak to HMRC if you are being forced to opt in for the tax without being allowed to use it for personal benefit.

 

[Dodder]

Don't know what you lot are wingeing & worrying about - just wait to pay per mile driving is intoduced - then you'll really have something to complain about...
The motorist is increasingly seen as an easy target for HMRC, what with the congestion charge, ULEZ & expanded ULEZ in London and similar schemes in other cities - IMO we must all do our best to resist these schemes or else car ownership will turn into something only the very wealthy can afford.