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.
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.
Richard Le Tocq, head of Locate Guernsey, discusses the chancellor’s approach to high net worth individuals, and why relocation is increasingly attractive to HNWIs
The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
Legislation on the NICs changes to be brought forward in the autumn following publication of 'the full effects of the changes to Class 2 and Class 4' in the summer
Following chancellor Philip Hammond’s Spring Budget speech, we explore the key takeaways for businesses and individuals