Company vehicles
Discussion
This might be posted in the wrong place, but I'm looking for guidance on a company load-lugger.
I'm starting a new, additional, business, and want/need a vehicle capable of lugging about 500kg - so a payload of around 600kg, I guess.
I don't want a van, and I know that a vehicle with a total payload of 1000kg, such as a twin cab,can be classified as commercial, and I get the associated benefits whilst having a sensible 4 or 5 seater tool. I may work up to this, but I don't fancy anything quite that big yet.
So I'm looking at useful 4x4 with adequate payload - and I know they won't be classed as commercial. I'm happy with that, as I would use the vehicle for private purposes too, so don't expect a free ride as it were.
The question is, are there any taxation benefits, or options I can take advantage of, if I logo up the vehicle? I'm probably going to do that anyway, but just wondered if I get anything tangible in return.
I'm guessing not, as so far I've come across nothing relating to this on the HMRC site, but thought it worth asking of people that already are in such a situation.
Cheers, all.
I'm starting a new, additional, business, and want/need a vehicle capable of lugging about 500kg - so a payload of around 600kg, I guess.
I don't want a van, and I know that a vehicle with a total payload of 1000kg, such as a twin cab,can be classified as commercial, and I get the associated benefits whilst having a sensible 4 or 5 seater tool. I may work up to this, but I don't fancy anything quite that big yet.
So I'm looking at useful 4x4 with adequate payload - and I know they won't be classed as commercial. I'm happy with that, as I would use the vehicle for private purposes too, so don't expect a free ride as it were.
The question is, are there any taxation benefits, or options I can take advantage of, if I logo up the vehicle? I'm probably going to do that anyway, but just wondered if I get anything tangible in return.
I'm guessing not, as so far I've come across nothing relating to this on the HMRC site, but thought it worth asking of people that already are in such a situation.
Cheers, all.
OK Guys, thanks. Looks like the branding up of a non-commercial is no benefit.
The twin-cabs are on the list to look at, but (a) I'm more used to driving smaller vehicles, so it will have to be another purchase rather than a replacement for my daily hack, and (b) I'm finding it difficult to justify to myself the cost of a half decent example.
I do rather fancy a Ranger, nevertheless....
The twin-cabs are on the list to look at, but (a) I'm more used to driving smaller vehicles, so it will have to be another purchase rather than a replacement for my daily hack, and (b) I'm finding it difficult to justify to myself the cost of a half decent example.
I do rather fancy a Ranger, nevertheless....
SS2. said:
Unfortunately, the Galaxy isn't classified as a commercial vehicle which I think is one of the OP's pre-requisites.
I'm a bit vague, 'either-or' in requirements.Ideally I'd like commercial, due to the tax incentives, but as it's my first foray in bigger motors, I also would like something more usable as a daily hack.
Looks like the two will be mutually exclusive; so it's either a twincab, with the commercial vehicle benefits, or a robust 4x4 that will give me a comfortable 500kg usable payload. I do want 4 wheel drive capabilities, as if I'm buying a work horse I'd like to take the opportunity of getting something that will help me with some leisure activities that include parking in pretty crappy and muddy fields, and tracks with more potholes than a WW1 battlefield!
Someone mentioned budget; as this is a new venture I'm going to limit myself to £5k initially. I think that will exclude a twincab, so it will be a good, used, 4x4 of some sort. It doesn't need to be that comfortable (I drive a TVR for fun, after all
) so I'm thinking Land cruiser, Pajero/Shogun, or something similar.After 6 - 12 months of trading, if things go well, I''ll reconsider the twincab. I've driven an L200 a couple of times, down to Switzerland on ski holidays, and got on well with it. I'm just not sure I want to go straight to that from a Golf, when there is still the chance I'll be driving in urban, built up, city areas. I WILL take off bits of my car, and others', initially, in a city!
And being a stalwart member of PH ..... I need to keep reminding myself that the vehicle purchase bit of my venture IS OF SECONDARY IMPORTANCE! I really mustn't get carried away....
Autopilot said:
I gave my 2p on the previous page...........
"You won't pay BIK if you don't use it for personal use and is solely used for business and incidental personal use.
It's not true that all double cab pickups are commercial vehicles. To be classified as commercial it must be able to carry over 1000kgs. If you have a hard top fitted, it's given a generic weight value of 45kgs, so this value must be taken in to account. If your double cab pickup can carry 1010kgs, the payload is now less than 1000kgs as you're carrying 45kgs of hardtop and you're now subject to company car tax.
This only applies to double cab pickups as standard cabs are obviously intended for carrying goods and not people where as the double cabs raise the question, 'is its primary purpose for carrying people or goods'?
As manufacturers build the vehicles to certain specifications, I'd be surprised if any modern double cabs would throw any doubt in to the equation. If in doubt, ask the manufacturer."
I think that what is being referred to is that the fact that there was a court case, where the legality of using a Twin Cab as a commercial vehicle (1 tonne payload not withstanding) has been questioned. The guy taken to court was, I believe, hit for tax."You won't pay BIK if you don't use it for personal use and is solely used for business and incidental personal use.
It's not true that all double cab pickups are commercial vehicles. To be classified as commercial it must be able to carry over 1000kgs. If you have a hard top fitted, it's given a generic weight value of 45kgs, so this value must be taken in to account. If your double cab pickup can carry 1010kgs, the payload is now less than 1000kgs as you're carrying 45kgs of hardtop and you're now subject to company car tax.
This only applies to double cab pickups as standard cabs are obviously intended for carrying goods and not people where as the double cabs raise the question, 'is its primary purpose for carrying people or goods'?
As manufacturers build the vehicles to certain specifications, I'd be surprised if any modern double cabs would throw any doubt in to the equation. If in doubt, ask the manufacturer."
In this budget, the matter is going to be addressed - and if the ruling is that even a 1 tonne payload twin cab is NOT classed as primarily commercial, then there may be a back dating of the tax to 2012.
I wanted a single vehicle that would be used as much for personal as well as business use, so paying the BIK was fine as part of the calculation - but the Twin cab may be out of scope either way in a few weeks. Hopefully not, as it would hurt a large number of people.
Autopilot said:
This isn't Speed, Plod and the Law, so not going to say unless you have a link to the source then it never happened, but for my own benefit, do you have any info on that case?
I'd be genuinely staggered if HMRC could win a case like that as a double cab is deemed a van under their own ruling and classification so any brief could just spout their own policy back at them. While HMRC have been known to retrospectively change the rules and slam people for tax, this would be difficult to back date this one.
I have been hit by a retrospective tax law change before so do appreciate that HMRC are a law unto themselves and anything could be possible!
These are the only links that I've found;I'd be genuinely staggered if HMRC could win a case like that as a double cab is deemed a van under their own ruling and classification so any brief could just spout their own policy back at them. While HMRC have been known to retrospectively change the rules and slam people for tax, this would be difficult to back date this one.
I have been hit by a retrospective tax law change before so do appreciate that HMRC are a law unto themselves and anything could be possible!
http://www.businessvans.co.uk/van-news/double-cab-...
http://www.businessvans.co.uk/van-news/double-cab-...
It's an 'interesting' one, and I guess we'll find out in two days' time.
Toaster Pilot said:
Rustyuk, the link that has been posted is the one that I've been basing must assessment on. Very clear (until the current issues with Coca Cola) that a Twin Cab with a clear 1000kg of payload is categorically accepted as a commercial vehicle. Even the dealer websites state this, and they'd by liable for huge compensation claims if they buggered up.
I'll be watching the outcome on the 22nd...
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