A1 Capital reduce costs on Double Cab Pick up’s

Nearly a very expensive mistake………………

Double Cab Pick up trucks traditionally were only used by Farmers and Tradesman , times have changed in 2015 there has been a growth of 30% in the UK in the number of this type of vehicle registered in the UK.

Why, business customers have recognised they can run a Double Cab Pick up through their business and pay a very low benefit in kind charge £634 a year for 2016/17 for a standard rate tax payer. Because the Double Cab Pick Ups are classified as a Commercial Vehicle and not a car, the top of the range models included all the features you expect to see on a Luxury Prestige car, Leather, Climate Control, Sat Nav, etc, so they are great option.

In July one of our recruitment company client’s requested a lease on a Top of the range Double Cab Pick up with Tow Bar and Top Box amongst the additional extras. It was for a director whose passion is eventing and needed to tow her horse box.

Double Cab pick ups are classified as Commercial Vehicles only if they have a 1 Tonne Payload (1000 Kgs), which all UK pick ups comply with without any extras, in this case the customer added over 60 Kg of extras which reduced the payload to less than 1 tonne, HMRC reclassify double cab pick ups with less than 1 tonne payloads as passenger cars and the benefit in kind in this case increased to an eye watering £4,900 a year.

Happily the customer accepted our advice and simply choosing a different make and model of Double Cab pick up avoided the problem.

There have been dozens of cases this year of HMRC reclassifying Double Cab Pick ups as Cars because the payload has been reduced below 1 tonne by the customer adding options to an already high spec vehicle.

We aim to ensure all our clients get best value, best service and best advice.

twitter SHARE Network@SHARENetwork_WY
Owen of @merlinsoft talking the group through his story and how he developed his business idea. Fantastic insight.… https://t.co/uhW13p6Bdy
Share Network
An Website

You currently have JavaScript disabled!

This site requires JavaScript to be enabled. Some functions of the site may not be usable or the site may not look correct until you enable JavaScript. You can enable JavaScript by following this tutorial. Once JavaScript is enabled, this message will be removed.