If you’ve ever fancied one of those great looking double cabs but thought they were the preserve of builders and property developers, then have another think. Because you could run a double cab as a company car and pay a pittance in company car tax.
It’s down to how HMRC classifies double cab pick ups: essentially as a commercial vehicle.
Of course, double cabs can be workhorses as any farmer will no doubt tell you; but they can also be luxuriously decked out too in high specification mode, including leather seats.
So if you want to save on company car tax, then a double cab could be one answer.
How does double cab company car tax work?For the purposes of benefit in kind company car tax, a double cab is classified as a van so long as it is:
- No more than 3500kg
- Has a payload of more than 1000kg (without hard top)
The benefit in kind for a double cab is £3150.So the company car tax payable on a double cab is:
- £630 a year/£52.50 a month (for a 20% tax payer)
- £1260 a year/£105 a month (for a 40% tax payer)
Of course, there are limitations with double cabs – unless you get a hard top for the flatbed section you can’t have any secure storage. But if that doesn’t bother you, then double cabs can make an interesting and low tax company car choice.
Benefit in kind tax is only payable on company supplied vehicles; if you are a sole trader, or in a partnership, there is no benefit in kind to pay.
You should always take professional advice – such as from your accountant – before making any decisions.
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