Pick-Up trucks to be deemed company cars for benefit in kind (BIK) purposes – oh Yes they are – oh No they’re not.

HMRC – not usually known for its speed when doing a U turn has obviously taken some advice from HM Government on how to turn nearly 180 degrees to try to make it appear that they are listening to industry and the British public.

Let’s look back to the 12th of February 2024 when HMRC quietly announced that they were changing the BIK rules for pick-up trucks that are used commercially and for personal use. They announced they are closing what they consider a loophole that saves pick-up truck drivers and their employer thousands of pounds in company car tax and Class 1A National Insurance Contributions (NIC).

Now let’s jump a whole week to 19th February 2024, HMRC have now done a U turn for vehicles with a payload of more than 1000kg. As a result, a great number of pickup trucks will continue to attract BIK as a Van rather than a Company Car.

This U turn is a smack in the face for drivers of “Vans” taxed as Company Cars. It would be interesting to hear the Coca Cola response to HMRC/Government double standards. We do hope Coca Cola are party to the “consultation” prior to the law being re-drafted.

It is important to be aware of the 1000kg, if you have concerns over your vehicle fleet or indeed are subject to a HMRC inspection and require expert professional advice, please contact us either by phone or email for a consultation.