HMRC reverses vehicle tax reclassification

HMRC has reversed plans to change the tax treatment of double cab pickups.

It had announced that from July they would have been classified as cars. However, it has now announced that these changes will not go ahead.

The decision has been welcomed by the National Franchised Dealers Association.

Chief executive Sue Robinson said: “HMRC’s announcement last week to classify double cab pickups as cars rather than goods vehicles would have resulted in hefty benefit-in-kind charges which in turn would have led to higher income tax and national insurance payments. Overall, the decision would have significantly hiked up costs causing a considerable impact on the motor and other industries.

“HMRC’s decision to renege on this guidance and continue to maintain the status-quo is positive news for businesses and consumers who are particularly reliant on double cab pick-ups.”

She continued: “Double cab pickups with a payload of one tonne or more will continue to be treated as goods vehicles for tax purposes. Double cab pickups with a payload of less than one tonne will continue to be treated as cars.”