Government U-turn on double cab pickups
After an earlier announcement that the tax treatment of double cab pickups would change later this year, the government has almost immediately changed its mind. What is the revised position?
-
Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
-
Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
-
Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
We previously reported that the tax treatment of double cab pickup trucks was to change with effect from 1 July 2024, with the VAT definition no longer being followed. However, just a week on from that announcement, the government has taken onboard concerns raised by farmers and other concerned users and scrapped the change. Instead, the legislation will be amended using the next Finance Bill to ensure that double cab pickups with a payload of at least one tonne will be treated as vans, for both income tax and capital allowances purposes. This will mirror the VAT definition, which HMRC has always referred to in its guidance - but this will now be on a statutory footing. Smaller pickups with a payload below one tonne will continue to be treated as cars rather than vans.
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.