Double cab pickup tax loophole closing

Double cab pickup tax loophole closing

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Discussion

cologne2792

2,133 posts

128 months

Tuesday 13th February
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I've been driving Ranger Super Cabs for more than a decade as they are absolutely the best and most suitable vehicle for the job.

I always found Double Cabs too small.

Zero Fuchs

1,004 posts

20 months

Tuesday 13th February
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teapea said:
joropug said:
My friends company has a fleet of brand new disco commercials, which appear to be a discovery without back seats. Therefore, it’s a van with no company car tax.

They’ve all been retrofitted with aftermarket rear seats…..

Guessing they’ll be next.
This is just tax evasion, if you add back seats it's no longer a van
Not quite true, but could be. It really depends so if you don't take the piss, you'll be ok.

Is a goods vehicle still a goods vehicle, even if it has seats in the back?
That depends on the particular circumstances. A goods vehicle is ‘a motor vehicle constructed or adapted for use for the carriage or haulage of goods or burden of any description’. A passenger vehicle is ‘a vehicle constructed solely for the carriage of passengers and their effects’.

If, by adding extra seats, all the load space was now taken up by passengers and their effects, a court might decide that the vehicle now fell under the description of ‘passenger vehicle’ rather than ‘goods vehicle’ and would need to meet the regulations that applied to passenger vehicles. This could affect the requirements for items such as seatbelts and brakes, as well as licensing requirements.

https://www.gov.uk/government/publications/convert...

Triumph Man

8,734 posts

170 months

Tuesday 13th February
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MB140 said:
I foresee a load of what we’re dual row pickups being sold with no back seats to allow for commercial BIK status but you somehow being able to buy the seats as an accessory and install them yourself.
People do this a lot with Discovery 3/4 commercials. You see loads for sale with the sttest of back seats in them hehe

Apparently in Ireland the revenue men have to witness the rear windows being smashed and solid panels fitted.

monkfish1

11,176 posts

226 months

Tuesday 13th February
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Gareth79 said:
monkfish1 said:
JackJarvis said:
There's a couple of mums at my kids' school who do the drop off / "pick up" in these, run through their husband's business as a commercial vehicle. It doesn't particularly bother me, if I was self employed I'd probably have done the same. It makes perfect sense they'd want to close that loophole though.
And now, those families will have to run 2 cars instead of one.

The person using it for business work will have little choice but to buy a single cab. And then have to buy a family car.

Thus increasing the number of cars. Because that makes perfect sense!
Won't it just be cheaper to pay the tax due?
Depends what car you but. But £8k a year in tax is quite a bit. In round numbers its close to 5 times the current amount.

cptsideways

13,574 posts

254 months

Tuesday 13th February
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Just a bellend tax for all Ford Rangers with the wheelie bin lids on the bonnets.

surveyor

17,904 posts

186 months

Tuesday 13th February
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TheOctaneAddict said:
Makes sense really, but I cant help but think this also might be shafting the people who actually need these trucks.
It is a little irritating.

I am a Chartered Surveyor, but work in the telecoms sector. Back in 2017 my patch was UK and Ireland. I started with one of these. Great van, but prone to getting me stuck in random inconvenient places.



At the end of that Lease I went for one of these, which meant I got stuck less often.



The chap who now does my old job collects his new Ranger next month, just in time to dodge the bullet this time around. Given the type of work we do there really is very limited options to avoid 4wd and the mileage makes ownership an unattractive option, I've not looked and can't imagine they will be Bik friendly, and it will be curious to see what this does to future choice and the Raptor which has never worked as it falls out of the commercial category.

Skeptisk

7,651 posts

111 months

Tuesday 13th February
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Zero Fuchs said:
teapea said:
joropug said:
My friends company has a fleet of brand new disco commercials, which appear to be a discovery without back seats. Therefore, it’s a van with no company car tax.

They’ve all been retrofitted with aftermarket rear seats…..

Guessing they’ll be next.
This is just tax evasion, if you add back seats it's no longer a van
Not quite true, but could be. It really depends so if you don't take the piss, you'll be ok.

Is a goods vehicle still a goods vehicle, even if it has seats in the back?
That depends on the particular circumstances. A goods vehicle is ‘a motor vehicle constructed or adapted for use for the carriage or haulage of goods or burden of any description’. A passenger vehicle is ‘a vehicle constructed solely for the carriage of passengers and their effects’.

If, by adding extra seats, all the load space was now taken up by passengers and their effects, a court might decide that the vehicle now fell under the description of ‘passenger vehicle’ rather than ‘goods vehicle’ and would need to meet the regulations that applied to passenger vehicles. This could affect the requirements for items such as seatbelts and brakes, as well as licensing requirements.

https://www.gov.uk/government/publications/convert...
Morally is it tax evasion and might also be legally. Normally to be tax evasion it has to be an artificial structure whose sole or main purpose is to save tax and tax is actually saved. No one would be a car that normally comes with rear seats without seats and then put in seats so it is certainly artificial.

I am sure this person would be most aggrieved if I stole one of his “vans” and would want me prosecuted but he feels fine about stealing from me by avoiding his taxes. Hypocrite.

heebeegeetee

28,922 posts

250 months

Tuesday 13th February
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andy43 said:
Yeah, but who actually needs self employed electricians, plumbers, carpenters, tilers?
Coincidentally I'm in a quiet Spanish seaside resort right now, at a time when the town is being spruced up for the coming season by the very people you mention, plus plasterers and painters, and there isn't a double cab pick up to be seen anywhere, just white vans.
Pretty much the same kind of small white van the French use for hunting, which the Brits cannot do without Range Rovers. laugh

heebeegeetee

28,922 posts

250 months

Tuesday 13th February
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egor110 said:
Hustle_ said:
I live in the south east. I never see doublecabs around here being used for work. Through that lens you end up wondering why there is what appears to be a tax incentive for people to buy them- they are big, unnecessary, less safe and more polluting than other vehicles which are available to do that job i.e. move up to five people around.

If you look at the U.S. trend these trucks only seem to get more ridiculous in proportion. While the truly ridiculous ones don't make it over here you only have to look at our propensity to follow U.S. trends and also to buy bigger and bigger vehicles in general to know that 'we' (the royal 'we') don't want to continue to financially incentivise people to buy them to ultimately kart the kids about etc.

I do get that elsewhere in the country trucks like this get used to do work. I am biased.
If we go down the unnecessary route then you'll be driving something with a far smaller engine then ?

After all the uk speed limit is 70 so anything that does over that is unnecessary .
The taxpayer isn't subsidising his choice, that's the issue. If there's anyone to blame for harming the honest subbie, it'll be those exploiting a loophole for their own purposes. smile

LandieMark

1,769 posts

150 months

Tuesday 13th February
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The prejudice in this thread is hilarious.

Makes no odds to me as my company have owned my truck for three years now. I use it for property maintenance as part of my business and farming as part of my part time work. A van would get stuck where I need to go and would be useless in the winter in the North Pennines.

The L200 will be getting kept a while and when 2028 comes around I'll buy it from my company when it's worth next to nothing and run it while longer.

It's not my main car as we also have a L322, but it is a useful bit of kit.

I had a Defender 90 Hard Top Van prior to this which I loved, but I didn't love fixing it all the time. My ideal vehicle would be a New Defender 90 Commercial but the cost isn't justifiable.

NomduJour

19,207 posts

261 months

Tuesday 13th February
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Skeptisk said:
Morally is it tax evasion and might also be legally
Absolutely, imagine not paying more tax than you have to. Those evil accountants should be strung up.

heebeegeetee

28,922 posts

250 months

Tuesday 13th February
quotequote all
NomduJour said:
Absolutely, imagine not paying more tax than you have to. Those evil accountants should be strung up.
As ever though, there's a difference between avoiding tax and evading tax. Honest subbies have possibly been screwed by people buying roughly toughy trucks for image only, as opposed to the ordinary family car or crossover they would otherwise afford.

JD

2,798 posts

230 months

Tuesday 13th February
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surveyor said:
It is a little irritating.

I am a Chartered Surveyor, but work in the telecoms sector. Back in 2017 my patch was UK and Ireland. I started with one of these. Great van, but prone to getting me stuck in random inconvenient places.



At the end of that Lease I went for one of these, which meant I got stuck less often.



The chap who now does my old job collects his new Ranger next month, just in time to dodge the bullet this time around. Given the type of work we do there really is very limited options to avoid 4wd and the mileage makes ownership an unattractive option, I've not looked and can't imagine they will be Bik friendly, and it will be curious to see what this does to future choice and the Raptor which has never worked as it falls out of the commercial category.
Manufacturers will just launch a PHEV version.

NomduJour

19,207 posts

261 months

Tuesday 13th February
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Don’t hate the player…

acer12

974 posts

176 months

Tuesday 13th February
quotequote all
joropug said:
My friends company has a fleet of brand new disco commercials, which appear to be a discovery without back seats. Therefore, it’s a van with no company car tax.

They’ve all been retrofitted with aftermarket rear seats…..

Guessing they’ll be next.
Is there an insurance risk here? Insurance based on registration document?

spaximus

4,246 posts

255 months

Tuesday 13th February
quotequote all
I had two as company cars over 6 years. They did get used as vans by myself and other drivers and to collect workers in the snow etc.

What has killed them is lots of people simply jumped on the tax saving hence you see so many driven by people who have no need for one and also why they jumped in and stated making them like luxury cars inside.

It was inevitable the tax man would look at them more closely as the popularity of them increased

mclwanB

604 posts

247 months

Tuesday 13th February
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Zarco said:
gazza285 said:
Don Roque said:
Good news, it'll be nice to see fewer of these turds on the road in future.
Marvellous, now we will take the two Transits we have to site, rather than all in the Ranger.
If only Ford would make a crew cab Transit biggrin
If used in the same way it would fall foul of the same rule change, anything with back seats and doors is classified as a company car.

Not quite the disaster for trades as they can still be run as pool cars but there is little to no "perk" or private use in those...

joropug

2,611 posts

191 months

Tuesday 13th February
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acer12 said:
Is there an insurance risk here? Insurance based on registration document?
I would think so yes - I did question him on it as I couldn’t believe it was acceptable but claims that the insurers know about the seats. I don’t know if it had panels or windows, I thought the latter maybe it had a bigger conversion than I thought.

https://www.westwoodmotorgroup.co.uk/landrover-dis...

The bench seat is not as nice as a factory one it’s similar to something you’d see in a converted camper, built in seat belts IIRC. I wonder if it is classed as temporary or something.


Gerradi

1,543 posts

122 months

Tuesday 13th February
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NomduJour said:
Don’t hate the player…
No , hate the guy not paying his fair share towards the country then moans about how nothing works, potholes, hospital lists, crap Policing...frown

Pica-Pica

13,973 posts

86 months

Tuesday 13th February
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Earthdweller said:
TheOctaneAddict said:
Makes sense really, but I cant help but think this also might be shafting the people who actually need these trucks.
That’s always the problem isn’t it?

Living in a real rural farming area these things are everywhere along with Landcruisers and the like and usually dragging large trailers with either livestock or machinery

They are just so damn practical and useful I can see exactly why all the farmers have them
Yup. Very common in rural areas, and used exactly for what their design suggests.