Posted: 07/09/10 by D N G Dove Naish
It’s always good to discover tax advantages that can be accessed by those of us who are not necessarily driven by the “green” tax policies for cars advocated in recent years. As a general rule of thumb the less CO2 your car pumps out into the environment the more tax benefits accrue, less benefits in kind, higher tax write off’s and so on.
Eco-friendly cars are not everyone’s cup of tea, especially if you need to use your car in your business. Readers may be interested in what local accountants DNG Dove Naish have to say on the issue: “Double cab pickups have carved themselves a unique position in our tax system. Most cabs on the market have the same specification as up-market cars; leather seats, cruise control, non-standard wheels etc. And of course they have an open-plan boot! As far as the taxman is concerned if the cab has a payload of over one tonne it will be treated as a van for tax purposes. This has two significant tax advantages:
1. The VAT added to the cost of the pickup is recoverable, and
2. Business owners can claim up to 100% of the after VAT cost against their profits.
Businesses planning to purchase a double cab pickup should be wary if there is a hard top fitted to the rear storage area. Sometimes this can reduce the payload below a tonne. Check with the manufacturers before completing your purchase.”