Saving on the cost of motoring is often a concern for UK business owners. The Government’s tax breaks for ‘low emission’ cars give the advantage of a 100 per cent first year allowance, lower annual road fund tax and a reduced benefit in kind for the employees who use them. However, few cars meet the necessary criteria.
There is another way, however, to reduce motoring costs: buy a ‘double cab’ pick-up truck. A vehicle which meets HM Revenue and Customs’ definition of a double cab pick-up is effectively treated as a lorry for tax purposes, meaning that the VAT on its purchase is recoverable and it also qualifies for the 100 per cent rate of capital allowance.
Regrettably, however, benefit in kind charges still apply to these vehicles.
Thanks to Alan Kennedy FCA for this.