Changes to VAT and BIK for Double Cab Pick-Ups: What You Need to Know

• Double cab pick-up trucks will be classified as cars instead of vans for benefit-in-kind tax purposes from 1 July 2024.
• This change aligns the VAT treatment of these vehicles with their classification as cars.
• HMRC and the SMMT have agreed on how the one tonne payload test will be applied to double cab pick-ups.
• Cars and commercial vehicles are treated differently for VAT purposes.
• Vehicles with a payload of one tonne or more are not considered cars for VAT purposes.
• Manufacturers, distributors, dealers, and business customers need to know the payload of any double cab vehicle they purchase.
• Adding accessories to a double cab vehicle may convert it into a car and make it liable for a self-supply charge.
• HMRC will ignore most accessories added to the vehicle, except for hard tops, which will be assigned a generic weight of 45kgs.
• HMRC and the SMMT have simplified the treatment of these vehicles for simplicity and certainty.
• More information can be found in para 23 Notice 700/57 and The Three Shires Trailers case.

Source: marcusward.co

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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