TaxPersonal Tax‘Double cab’ drivers face tax threat

'Double cab' drivers face tax threat

Drivers of double cab 4 x 4 pickups - trucks typically featuring extended four-door cabins instead of two - could be heading for tax trouble.

Tax specialists at Manchester business advisers DTE warn the Inland Revenue has reclassified the trucks as cars rather than vans, leading to a potential six-fold liability increase for drivers who see them as a popular value-for-money alternative to company cars.

Click here to view the 2002 Tax Card.

DTE director of tax Alan McCann explains: ‘Previously, the double cab pickup was classed as a van, which meant a maximum tax bill of £200. As a car, the minimum tax liability for a driver with an annual tax income of £20,000 would be £1,200 – and this could increase further depending on vehicle type and emissions.’

The reclassification is an interim measure for the current 2002/3 tax year pending an Inland Revenue review of company van taxation.

McCann advises employers to review the situation to ensure employees potentially affected are not saddled with an unexpected tax bill at the end of the tax year.

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