Pick up truck BIK

[batmanreturns]

I'm sure this question has been done to death but whats the latest stance on these? Specifically i'm looking to see if it's worth me getting a pick up truck as a company car within my business. Will i still get hammered for tax? Is it worthwhile or am i better off buying it in a personal name? I assume that pick up trucks are generally a lower BIK than say a Vw Golf/Passatt etc due to them being classed as commercial vehicles?
thanks

[Eric Mc]

Depends on the specific vehicle. A bog standard commercial pick-up has no problems. A super duper, chrome bedecked trendy six place cab vehicle may not qualify.

[batmanreturns]

thanks, what is it that impacts the BIK ie is it engine size, load capacity or number of seats?

[The Ferret]

If you can restrict the private use to incidental on qualifying vehicles, there is no BIK, thats my understanding. I wouldn't even bother with the incidental side, it just creates scope for it to be challenged, keep it all business.

The bonus is that with commercial vehicles, commuting to and from work is not classed as private use. Sign a declaration each year confirming the vehicle has not been used for private use, and that you have records to substantiate the use. Keep a record of all mileage, making sure it is all work related, and that it ties into all other records (e.g. fuel card records, MOT's and service receipts) and I don't see any BIK liability. I'm sure Eric will correct me on that if I'm wrong, but the big draw with these vehicles is that they can be used for commuting without attracting BIK, whereas cars attract the full charge as soon as you drive them to and from work.

Whether it's true I don't know, but I'm told having another car registered in your name (for private use) or at least another registered at your home address helps bolster the position - as that would be used for the inevitable journeys you would need to make outside work.

[Trophy Husband]

I have a Ford Wildtrak for business and personal use. It costs me a little north of £700 and the company a little north of £500 IIRC. If you are looking to avoid the BIK then you need to keep records of every journey business and personal and ensure the personal is incidental. I figured for just over £100/month in total (personal and business combined) I was happy to sacrifice £2/day it costs me personally not to have to keep those records and be legit with no questions to answer.

[SS2.]

batmanreturns said:

thanks, what is it that impacts the BIK ie is it engine size, load capacity or number of seats?

Its load carrying capabilities would need to be considered.

For example, if the addition of a hard-top reduced the gross payload to less than 1000kg, it would no longer qualify as a Light Commercial Vehicle.

Did you have a make & model in mind ? The presumption is that you're looking at double-cabs.

Edited by SS2. on Monday 11th March 13:54

[Eric Mc]

Double cabs are the danger area because they may not qualify.

[Trophy Husband]

Mine is a double cab as is my business partners. We had an HMRC audit prior to Christmas. The auditor was happy with me declaring the BIK as I am generally office based and was happy with my business partner keeping mileage records as he is out visiting sites every day and his personal mileage could be deemed incidental.

I daresay they may change the rules at some point!!

[surveyor]

Double cabs have been attacked by HMRC, in van land. The Transporter Combo van for instance does not class as commercial anymore as the loadspace is too small (and it's st anyway). Transit double cabs do.

I believe part of the consideration is the weight they will carry - needs to do a ton in the back. Most of the pickups are slightly above this so that they can accommodate a hardtop and still do the ton....

Tax for personal use if commercial is tiny - certainly compared to company car tax.

[Legacywr]

It’s quite clear to see that the Transpoter Combo, is a “lifestyle” vehicle, rather than a commercial.

Is any pickup taxed on it's actual value? Or, is it just hearsay?