Benefit in Kind tax and VAT hinge on the 1 tonne capacity.
HM Customs and Excise and HM Revenue and Customs formerly treated double-cabs differently, potentially making a double-cab a car for income tax
purposes and a van for VAT purposes.
HMRC acknowledge that these vehicles present them with a challenge
when establishing the predominant purpose of construction because
on the surface many double-cabs appear to be equally suited to
convey passengers or goods. Hence they cannot come up with a single
categorisation for all double cab pick-ups or give a blanket ruling on
any particular makes, as the standard vehicle may have been adapted
in the factory, by the dealer, or after purchase. So each case depends
on the facts and the exact specification of the vehicle.
When deciding whether double cab pick-ups count as cars or vans,
HMRC will interpret the legislation that defines car and van for tax
purposes in line with the definitions used for VAT purposes.
Generally, if a double cab pick-up has a payload of 1 tonne (1,000kg)
or more it is accepted as a van for benefits purposes. Payload means
gross vehicle weight (or design weight) less unoccupied kerb weight.
(Care is needed when looking at manufacturers’ brochures as they
sometimes define payload differently.)
Under a separate agreement between Customs and the Society of
Motor Manufacturers and Traders (SMMT), a hard top consisting of
metal, fibre glass or similar material, with or without windows, is
accorded a generic weight of 45kg. Therefore the addition of a hard
top to a double cab pick-up with an ex-works payload of 1,010 kg
will convert the vehicle into a car (net payload reduced to 965 kg).
Under this agreement, the weight of all other optional accessories is
disregarded. HMRC has also adopted this treatment.
