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 FCCA
Manager
Ellie started with Evolution ABS in April 2010 and became a fully qualified as a Chartered Certified accountant in December 2015. She focuses on a portfolio of a range of clients, from farming to plumbing, providing valuable support in all aspects of accountancy and taxation.
Having grown up on a dairy farm in Dorset, Ellie later moved to Devon in 1998. She now lives with her husband and two young sons on their family farm in East Devon, where they raise beef, sheep, and grow arable crops. When she gets the chance, Ellie enjoys being outdoors with her boys, who share their dad’s passion for farming. She also enjoys moments spent with family and friends and the occasional bit of retail therapy when time allows!
Ellie can be contacted in the office on Mondays – Thursdays.