Doublecabs tax
What’s the score with double cabs
Double cabs, also known as double cab pick-ups, seat as many people as a car and some are equipped with car-like comforts, such as air conditioning and CD players. They also have a large, usually open, cargo hold at the back. Some company car drivers see them as a way to enjoy car-like benefits while paying tax at the lower, company van’s rates. The taxman sees this as a loophole and says that for tax purposes, if the payload is less than one tonne, then it’s a car. If it’s over a tonne? That’s a grey area, which you will need to discuss with your local tax office. They may ask you for hard evidence of your business need for a double cab, especially if you’re swapping from a company car. There are no firm guidelines, and it is up to the local tax officer to decide whether your vehicle is classed as a car or a van.
A new tax definition of double cabs was expected in the budget in 2004, but it didn’t emerge. It’s very likely that the Inland Revenue will leave the current position unchanged until the new, more stringent company van tax is introduced in 2007. Click here for more details on company van tax.