WE all like a double cab. But do you have to pay tax on double cabs and pick-ups?
Answer: yes if you have a company provided double or single cab pick-up and use it for private mileage.
But the silver lining to this is that you don’t have to pay company car levels of benefit in kind taxation.
Currently, HMRC classifies these pick-ups as vans – as long as they have a payload of 1 tonne (1000kg) or more. A payload means the vehicle’s gross vehicle weight less its unoccupied kerb weight.
Where a pick-up has a hard top, this is given a generic weight of 45kg. So a pick-up that has a payload of 1010kg will convert to a car under these definitions. So it’s important to ensure your pick up qualifies
So how much do you have to pay?
The Van Benefit Charge is £3170 for the 2016/17 tax year. Which means:
- The van tax on double cabs and pick ups is £634 for a 20% tax payer
- The van tax on double cabs and pick ups is £1268 for a 40% tax payer
If you also get paid for all your fuel – private and business – then there is the fuel benefit charge to pay.
The Van Benefit Charge including free fuel is £3768 for the 2016/17 tax year. Which means:
- The van tax on double cabs and pick ups including free fuel is £753 for a 20% tax payer
- The van tax on double cabs and pick ups including free fuel is £1506 for a 40% tax payer