D J Macaulay

Generally speaking double cab pickups have as much utility as cars, as they do as vans – owners have been seen to polish the inside of the tail gate! Surprisingly there are a number of VAT and tax concessions for businesses that run this type of vehicle.

Local accountants D J Macaulay Accountancy Ltd have commented as follows.

“Since 1 December 1999 vehicles that have a payload of one tonne or more are no longer treated as cars. Consequently it should be possible to reclaim all the VAT charged when you purchase a double cab pickup as long as it satisfies the payload criteria. If there is any private use of the pickup you will need to restrict your claim – so 10% private use you reclaim 90% of the input tax.”

D J Macaulay Accountancy Ltd have also confirmed that H M Revenue & Customer now apply the same definition for income and corporation tax purposes.

“The net cost of a double cab pickup (after VAT has been reclaimed) could be available for a 100% tax allowance as part of your Annual Investment Allowance - up to a maximum of £50,000 each tax year. If you are a higher rate, self-employed tax payer this is an attractive cash flow option. If you buy a double cab pickup through a limited company you will need to watch out for the benefit in kind charges that may be levied. Even so there should still be an overall tax advantage.”

If you would like to find out more about the various tax concessions D J Macaulay Accountancy Ltd would be more than happy to advise; see contact details that follow.