Double Cab Pick-Ups
For farmers, a double cab pick-up is one of the most practical vehicles to own. It’s versatile and sturdy, perfect for general farm work as well as regular trips to Mole Valley Farmers and ferrying children to various events.
From a tax point of view, all seemed rosy – as an agricultural vehicle it would attract 100% Annual Investment Allowance and therefore deductible against taxable profits, providing the vehicle had a payload of over one tonne.
However, it has recently come to light that the double cabs load bay is not very secure, so many owners will add an after-market cover, either level with the load bay itself, or full cab height. The weight of this extra accessory is taken into account when calculating the vehicles payload, for example, the stated payload could be 1.1 tonnes, with the load bay cover weighing 0.2 tonnes. This then reduces the effective payload of the vehicle to 0.9 tonnes, rendering the vehicle a motor vehicle, not an agricultural vehicle and therefore will not attract 100% upfront Capital Allowances.
The upshot of this is that if you are thinking of purchasing a double cab pick-up, and will add a cover or full height cab, then please carefully check the manufacturer’s specifications to ensure that any additions won’t take the pay load of your new pick-up beneath the magic one tonne.
The content of this article is for general information only and does not constitute tax advice. It should not be relied upon and action which could affect your business should not be taken without appropriate professional advice.
Ellie Hammett ACCA
Ellie started with Evolution ABS in April 2010, gained her AAT qualification in September 2012 and fully qualified as a Chartered Certified accountant in December 2015. Ellie now manages a portfolio of mainly agricultural clients.
Ellie grew up on her parents’ dairy farm in Dorset, before moving to Devon in 1998. She now lives with her husband on his family beef and sheep farm in East Devon.
Ellie is currently on maternity leave, but in her spare time, she enjoys helping out on the farm (although not so much the night time lambing) and used to be an active member of Whimple and Broadclyst Young Farmers Club, competing in speaking competitions, drama and showing stock.