Support road.cc

Like this site? Help us to make it better.

Articles on the tax incentives for buying pick up trucks?

I can't find any articles questioning the UK's (and maybe other countries'?) tax incentives for buying these vehicles. The pick ups I see aren't being used for carrying building materials, they just look like they're being used as company cars. I'm surprised there isn't more questioning of the policy, unless I've missed something? 

Thanks to AidanR for this summary under the Road.cc article "SUVs more dangerous [...] "

"The tax benefits are threefold when purchased as a company vehicle:

1) Much lower benefit in kind rates for employees and employers than cars, which aren't linked to CO2 emissions.

2) Ability to recover VAT paid, unlike cars. In theory VAT recovery for a doublecab pick-up should be apportioned for private use, although how often that happens in practice I don't know.

3) 100% relief against corporation tax in the year of purchase, rather than 18% or 8% per year for a car."

    

If you're new please join in and if you have questions pop them below and the forum regulars will answer as best we can.

Add new comment

15 comments

Avatar
Bigtwin | 1 week ago
3 likes

I worked for a guy who had one of these.  He wanted a plain estate car, but the idiot tax rules make this a no-no.  Someone needs to get a grip.

Avatar
bikes | 1 week ago
4 likes

Can anyone make an argument in favour of the policy? Did the government ever reveal the  reasoning behind it? Would a petition questioning the policy likely get enough traction for 10,000 signatures?

Avatar
wtjs replied to bikes | 1 week ago
5 likes

Can anyone make an argument in favour of the policy?

The beneficiaries of the policy certainly can! Apparently, these vehicles are exempt from MOT, insurance and VED although I think you still have to pay for the petrol

Avatar
mark1a replied to bikes | 1 week ago
3 likes

bikes wrote:

Can anyone make an argument in favour of the policy? Did the government ever reveal the  reasoning behind it? Would a petition questioning the policy likely get enough traction for 10,000 signatures?

The government "policy" as such is just a way of defining commercial vehicles for tax purposes, which is the correct thing to do, otherwise it would be free-for-all on VAT reclaim on ordinary cars. The issue with crew-cab pick-ups being used instead of company cars is what's known as a "loophole". Over the years, the government has sought to discourage this by raising the BIK, it's currently nearly £4k, back in the mid 2000s when the manufacturers started putting more comfortable interiors in them, the BIK was only £500. 

Avatar
bikes replied to mark1a | 1 week ago
5 likes

Ok, thanks. I'm getting a better understanding. An Autoexpress article (2021) seemed to have a good explanation as well. It includes this: "Increasing numbers of company drivers are cottoning-on to the tax advantages of running a cool-looking double-cab pick-up instead of a traditional family car or SUV. So naturally manufacturers who make juicy margins on ‘luxury’ versions of cheap to develop commercial vehicles are doing everything possible to fan the flames of desire." And this table.  

How can this loophole be closed?

Avatar
Bigtwin replied to mark1a | 1 week ago
1 like

Just make it so that if it's owned/leased by a company, it's a company car.  That way people can have estate cars instead of enviornment wrecking trucks, which they have because if you don't have a 1 tonne plus LCV you lose money.  More government stupidity in action.

Avatar
mark1a replied to Bigtwin | 1 week ago
0 likes

Bigtwin wrote:

Just make it so that if it's owned/leased by a company, it's a company car.  That way people can have estate cars instead of enviornment wrecking trucks, which they have because if you don't have a 1 tonne plus LCV you lose money.  More government stupidity in action.

How would you propose the difference in BIK tax between company cars and commercial vehicles?

Avatar
Armchairanarchist | 1 week ago
11 likes

My Pick Up wanker story.
Riding between Rotherham and Sheffield (meadowbank road), relevant because it's about a mile and a half long and lovely and wide with a high speed limit & plenty of time to pass, after the 30mph section with traffic calming islands in the first few hundred yards.

However, Mr big man in his L200 was far too important for that and forced his way past.
There was a loud bang and his truck shook violently. I was fortunate to be wearing AG2R+ replica shorts.
Delightfully, because he was a weapons grade dildo, he had fitted giant alloys with super low profile tyres, which he had just smashed into the center islands. He pulled in at the curry house and as I passed I observed his fancy wheels now looking completely
"unfancy" with the rear one cracked and the front one resembling a Pringle.
I was still laughing when I reached my destination, with occasional bursts of giggles persisting for the next 2 weeks.
Karma seems rare, but when it happens it's marvelous.

Avatar
bikes | 1 week ago
4 likes

Glad it's not just me that doesn't like them. Why not encourage innovation towards smaller, lighter work vehicles?

Avatar
Tom_77 | 1 week ago
6 likes

The US situation.

In the US imported trucks are subject to a 25% tax (chicken tax). With less competition, US manufacturers can make more profit on trucks and have heavily marketed them. MPG rules for trucks are also less strict than for cars which is another incentive.

Avatar
Tom_77 | 1 week ago
2 likes

There's a summary of the UK tax rules here.

Avatar
HoarseMann replied to Tom_77 | 1 week ago
11 likes

Tom_77 wrote:

There's a summary of the UK tax rules here.

How remiss of Auto Express to not mention that lower commerical vehicle speed limits apply to most of these 4x4 crew cab pickups.

In my experience, the drivers of these vehicles seem to have bought them to intimidate other road users, by tailgating and generally bullying others out of their way. Shame it's also being funded by the tax payer.

Avatar
Daveyraveygravey replied to HoarseMann | 1 week ago
8 likes

HoarseMann wrote:

Tom_77 wrote:

There's a summary of the UK tax rules here.

How remiss of Auto Express to not mention that lower commerical vehicle speed limits apply to most of these 4x4 crew cab pickups.

In my experience, the drivers of these vehicles seem to have bought them to intimidate other road users, by tailgating and generally bullying others out of their way. Shame it's also being funded by the tax payer.

I totally agree with you experience.  Anecdotal evidence, a guy I work with bought a Misubishi Warrior or something like that, I asked him why, he said it was cool and his kids love it. It barely fits a standard car park space at work.  They are almost always driven with a couldn't-give-a-fuck-about-anyone-else attitude, although that isn't just restricted to pick ups.

Avatar
brooksby replied to Daveyraveygravey | 1 week ago
12 likes

I had some work done on my central heating in December.  I had to bite my tongue every time I saw the guy's shiny black crew-cab pickup thing…  (I didn't want to alienate him, as he does really good work).

I said to my wife, "I can't believe he's going to put all that rubbish (old boiler, pipes, etc) in that vehicle!" and you know what, he didn't!  He arranged for a mate with a grubby white van to come and collect it all the next day! 

Avatar
Eton Rifle replied to brooksby | 1 week ago
6 likes

It's not uncommon to see the blokes doing the actual work rocking up in a battered white Transit with the tools, materials etc. An hour later, the boss rocks up in a spotless, shiny "pick-up" wankpanzer.

Baffingly, the driver of each vehicle pays the same "van" benefit-in-kind for any private use.
It's bonkers.

Latest Comments