Commercial Vehicle Tax

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Ade - 08 Sep 2006 07:48 GMT

I've just had a Navara pickup as my company vehicle and fitted a cover to
the back, which I was told would not affect the status of the vehicle in
terms of classification as a commercial vehicle as the vehicle could still
carry in excess of 1000kg.
Since doing this, someone has advised me that this might not be the case.

Can anyone advise.

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Geoff Lane - 08 Sep 2006 12:32 GMT

> I've just had a Navara pickup as my company vehicle and fitted a cover
> to the back, which I was told would not affect the status of the
> vehicle in terms of classification as a commercial vehicle as the
> vehicle could still carry in excess of 1000kg.
> Since doing this, someone has advised me that this might not be the
> case.

AFAICT fitting a "truckman" type top or a permanent _rigid_ cover *might*
change the vehicle status. HMRC subtract 45kg (the deemed weight of the top
or cover) from the manufacturer's declared payload to arrive at the
effective payload. If the effective payload is under 1000kg, it's a car for
tax purposes! However, I do wonder about the case where you, personally,
buy and fit the cover.

http://www.hmrc.gov.uk/manuals/eimanual/EIM23045.htm

However, things are changing anyway in April with a massive increase in the
taxable benefit in kind for vans (which would include your Navara). For tax
year 2007/08, this is £3,000 per annum regardless of the age of the van
unless private use is forbidden and no private use occurs. Additionally,
should the company pay for any fuel for private use, there will be an extra
taxable benefit of £500.

http://www.hmrc.gov.uk/manuals/eimanual/EIM22790.htm

HTH,

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Geoff

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Ade - 08 Sep 2006 13:37 GMT

Thanks Geoff

That confirms my understanding. The payload of the Navara is 1070kg, so I
still have plenty in hand after subtracting the 45kg.

Even though the tax changes next year, it's still cheaper than the tax I was
paying on my Renault Scenic. Tax on £3K and the fuel still only amounts to
£770 p.a.

Thanks again

Ade

>> I've just had a Navara pickup as my company vehicle and fitted a cover
>> to the back, which I was told would not affect the status of the
[quoted text clipped - 27 lines]
>
> HTH,

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