HMRC considering major car tax change – 1 type of | Tech News

HM Revenue and Customs (HMRC) might be “considering” new car tax guidelines, with one type of vehicle focused by the updates. HMRC may modify the VAT guidelines for electric pick-up vans following issues raised by the Society of Motor Manufacturers and Traders (SMMT).

For double-cab pick-up vans to be thought-about industrial automobiles, fashions will need to have a payload of not less than one tonne. A payload is the full weight a vehicle can safely carry, together with passengers, cargo and trailer weight.

However, the bigger dimension of electric car batteries has meant producers have struggled to realize this on some of their EV fashions. The SMMT has raised the difficulty with HMRC, explaining that producers had been going through difficulties in assembly the brink.

HMRC has now admitted it might be open to reviewing modifications, which may result in an replace sooner quite than later.

HMRC advised Fleet News: (*1*)

There can be the chance that these with the keys to decrease-payload vans may benefit from VAT reclamation. Early estimates from FleetNews counsel companies could possibly reclaim as a lot as £8,000.

Under the tweaks, any double-cab pick-up vans with a payload of beneath one tonne will probably be categorized as a car, with something over one tonne deemed to be a van.

However, transitional preparations apply for employers who first bought, leased, or ordered a model earlier than 6 April 2025. Motorists on this class will be capable of depend on the earlier guidelines till April 2029.