Double cab pickups u-turn: EPG sends letter to UK government
By Justine Riccomini, Head of Tax (Employment and Devolved Taxes)
25 March 2024
Read the letter from the Employment and Payroll Group to the Financial Secretary to the Treasury regarding the change and subsequent reversal of the double cab pickups guidance.
Changes to guidance on double cab pickups
On 12 February 2024, HMRC issued revised guidance on its interpretation of the tax treatment of double cab pickups. This meant that they would be treated as cars instead of vans and denied future claims of first year allowances on them. Following pressure from the motor trade and agricultural sectors, the guidance was reversed back to the original treatment a week later, on 19 February 2024.
Note that the legislative provisions in relation to double cab pickups hadn’t changed, just the guidance. However the complete lack of consultation with key stakeholder groups such as the Employment and Payroll Group (EPG), which is co-chaired by ICAS, was concerning to both professional and sector representative bodies. As such, the EPG decided that a letter to the Financial Secretary to the Treasury, the Rt. Hon Nigel Huddleston, was necessary.
Unintended consequences?
Had the measures gone ahead, it is likely that many businesses would have suffered terrible financial consequences. Thousands of fleet orders were cancelled and many businesses and individuals in agriculture, construction and other sectors sought professional tax, accounting and legal advice during the week in question. This resulted in costly professional fees for those affected.
Watch the video below, or read the letter to find out more.
If you have spotted a tax anomaly that is getting in the way of doing business, why not share it with the ICAS tax team by emailing tax@icas.com
