On 12 February 2024, HM Revenue & Customs (HMRC) had updated its guidance on the tax treatment of twin cab pickups following a 2020 Court of Appeal judgment.
The guidance had confirmed that, from 1 July 2024, twin cab pickups with a payload of one tonne or more would be treated as cars – attracting a substantially higher income tax benefit-in-kind charge on individuals and a National Insurance charge on employers.
The government have since listened carefully to views from the farming and motoring industries who argued that this policy “could have an impact on businesses and individuals in a way that is not consistent with the government’s wider aims to support businesses”. It was an extremely unpopular move with those who use such vehicles excessively for business purposes.
As a result, the government made a ‘U-turn’ on 19 February 2024!
It has now been confirmed that twin cab pickup vehicles with payloads of 1 tonne or more will continue to be treated as goods vehicles for both capital allowances and benefit-in-kind purposes; thus continuing to be aligned with their VAT treatment.
