THERE are some rather good contract hire and leasing deals available on pick-up commercial vehicles – many that rival some lesser value passenger cars – yet, surprisingly few company car drivers consider choosing a pick-up as a company vehicle.
By selecting a double-cab pick-up for maximum versatility of space, both the business and the driver could make substantial savings.
Simon Wroe, marketing director at Lease4Less, is keen to point out that the benefits are well worth considering for any SME looking at making savings without having to make sacrifices;
“Any vehicle with a one tonne payload is classified as a light commercial vehicle – this covers double-cab and single-cab pick-ups that are ideal for every-day use as well as for working purposes.
“Many of these vehicles come with a high specification and the space offered is comparable, in many cases, to large SUVs that would carry high benefit in kind tax implications if they were chosen as a company car.”
Company LCV pick-up savings
- 100% of the VAT on the monthly rental can be reclaimed if you are a VAT registered company
- Only 50% of the VAT can be claimed back on the monthly rental if a car is chosen instead of a commercial vehicle (unless the car is only used for business use)
- A 20% tax payer will pay a standard rate of just £753 for any pick-up vehicle if chosen as a company vehicle (2016 / 2017 tax year) and if free fuel is included, for a 40% tax payer that’s still just £1,506