Latest news with #BIK
Scottish Sun
28-04-2025
- Automotive
- Scottish Sun
Thousands of drivers face tax hike of over £7,000 if they own specific type of popular vehicle – check if you are hit
These will impact drivers according to their tax rate PICK ME UP Thousands of drivers face tax hike of over £7,000 if they own specific type of popular vehicle – check if you are hit Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A HUGE tax hike is set to hit thousands of drivers across the UK. New Benefit-in-Kind (BIK) rules could change how some vehicles are classified by HMRC. Sign up for Scottish Sun newsletter Sign up 2 Tax hikes will impact thousands of vehicle owners in the UK Credit: Getty Owners of double-cab pick-up trucks may have to cough-up extra cash in tax as a result. Vehicles in this category include the the Ford Ranger, the Isuzu D-Max and, an old Top-Gear favourite, the Toyota Hilux. From April 6, pick-ups are being treated as company cars, rather than vans, under new customs laws, which could lead of annual tax bills of up to £8,000 for their owners. The revisions to the tax brackets come after a 2020 Court of Appeal ruling, which found that double-cab pick ups were not primarily suited to business use. This led BIK tax regulators to abandon the one-tonne payload test, which measured the weight a pick-up could carry in cargo and passengers. Under this previous system, pick-ups were taxed at a flat rate of £3,960 per year. Instead, under new rules they would be judged on carbon emissions, with huge numbers of diesel pick-ups in the top bracket (37%). Shocking moment 'road rage' motorist swings PUNCHES at recovery truck driver in blazing row at roundabout For a £45,000 pick-up, a 20% taxpayer would now have to foot a tax bill of £3,330 a year, with 40% taxpayers paying £6,660 for their motor. Experts at Auto Traders have warned that more expensive models may see emissions tax bills go above the £7,000 mark. They said: "from April 2025 a £50k double cab Ford Ranger would fall into the 37 per cent BIK rate, meaning you'd need to pay £3,550 in tax if you were a 20 per cent taxpayer. "For people in the 40 per cent tax bracket, that new tax payment would be just over £7,000." The misery for truck drivers doesn't stop there, as fuel benefit rules are also changing. Pick-up drivers are now moving from a £757 van rate, to the hefty car fuel benefit multiplier of £28,200 - also varying according to emissions and income. Some experts have even warned that claiming fuel benefit won't be worth it for many truck drivers. To further turn the screw on pick-up owners, their capital allowance has been tightened too, so generous deductions against their profits can no longer be claimed. Thankfully for double-cab drivers, there is transitional relief in place. Anyone who bought or leased a pick-up before April 6 can stay under the old rules until 2029, providing a limited window to avoid the full force of these adjustments. Leading tax firm Finsbury Robinson advised: "Many business owners will be considerably worse off, but choices can still be made to minimise tax liabilities.' Unsurprisingly, a petition against the changes has been launched, demanding Labour "reverse the Tax Treatment of Double Cab Pickup Trucks in the 2024 Autumn Budget". It highlights the potential harm to businesses these changes could make, and focuses on the crucial role pick-ups play in rural jobs - with their heavy load capacity and flexibility over tough terrain. Addressed to Rachel Reeves, it claims: 'We think this change will harm many businesses, farmers, tradespeople, and individuals relying on double cab pickups for work, making work vehicles costly. "Reclassifying them as cars drastically raises costs by increasing Benefit in Kind tax and lowering their capital allowances. Any petition with 10,000 signatures will receive a formal response from the government, and any with 100,000 are considered for debate in Parliament.
The Sun
28-04-2025
- Automotive
- The Sun
Thousands of drivers face tax hike of over £7,000 if they own specific type of popular vehicle – check if you are hit
A HUGE tax hike is set to hit thousands of drivers across the UK. New Benefit-in-Kind (BIK) rules could change how some vehicles are classified by HMRC. 2 Owners of double-cab pick-up trucks may have to cough-up extra cash in tax as a result. Vehicles in this category include the the Ford Ranger, the Isuzu D-Max and, an old Top-Gear favourite, the Toyota Hilux. From April 6, pick-ups are being treated as company cars, rather than vans, under new customs laws, which could lead of annual tax bills of up to £8,000 for their owners. The revisions to the tax brackets come after a 2020 Court of Appeal ruling, which found that double-cab pick ups were not primarily suited to business use. This led BIK tax regulators to abandon the one-tonne payload test, which measured the weight a pick-up could carry in cargo and passengers. Under this previous system, pick-ups were taxed at a flat rate of £3,960 per year. Instead, under new rules they would be judged on carbon emissions, with huge numbers of diesel pick-ups in the top bracket (37%). For a £45,000 pick-up, a 20% taxpayer would now have to foot a tax bill of £3,330 a year, with 40% taxpayers paying £6,660 for their motor. Experts at Auto Traders have warned that more expensive models may see emissions tax bills go above the £7,000 mark. They said: "from April 2025 a £50k double cab Ford Ranger would fall into the 37 per cent BIK rate, meaning you'd need to pay £3,550 in tax if you were a 20 per cent taxpayer. "For people in the 40 per cent tax bracket, that new tax payment would be just over £7,000." The misery for truck drivers doesn't stop there, as fuel benefit rules are also changing. Pick-up drivers are now moving from a £757 van rate, to the hefty car fuel benefit multiplier of £28,200 - also varying according to emissions and income. Some experts have even warned that claiming fuel benefit won't be worth it for many truck drivers. To further turn the screw on pick-up owners, their capital allowance has been tightened too, so generous deductions against their profits can no longer be claimed. Thankfully for double- cab drivers, there is transitional relief in place. Anyone who bought or leased a pick-up before April 6 can stay under the old rules until 2029, providing a limited window to avoid the full force of these adjustments. Leading tax firm Finsbury Robinson advised: "Many business owners will be considerably worse off, but choices can still be made to minimise tax liabilities.' Unsurprisingly, a petition against the changes has been launched, demanding Labour"reverse the Tax Treatment of Double Cab Pickup Trucks in the 2024 Autumn Budget". It highlights the potential harm to businesses these changes could make, and focuses on the crucial role pick-ups play in rural jobs - with their heavy load capacity and flexibility over tough terrain. Addressed to Rachel Reeves, it claims: 'We think this change will harm many businesses, farmers, tradespeople, and individuals relying on double cab pickups for work, making work vehicles costly. "Reclassifying them as cars drastically raises costs by increasing Benefit in Kind tax and lowering their capital allowances. Any petition with 10,000 signatures will receive a formal response from the government, and any with 100,000 are considered for debate in Parliament. 2
The Irish Sun
28-04-2025
- Automotive
- The Irish Sun
Thousands of drivers face tax hike of over £7,000 if they own specific type of popular vehicle – check if you are hit
A HUGE tax hike is set to hit thousands of drivers across the UK. New Benefit-in-Kind (BIK) rules could change how some vehicles are classified by HMRC. Advertisement 2 Tax hikes will impact thousands of vehicle owners in the UK Credit: Getty Owners of double-cab Vehicles in this category include the the From April 6, pick-ups are being treated as company cars, rather than The revisions to the tax brackets come after a 2020 Advertisement Read more Motos This led BIK tax regulators to abandon the one-tonne payload test, which measured the weight a pick-up could carry in Under this previous system, pick-ups were taxed at a flat rate of £3,960 per year. Instead, under new rules they would be judged on carbon emissions, with huge numbers of Shocking moment 'road rage' motorist swings PUNCHES at recovery truck driver in blazing row at roundabout For a £45,000 pick-up, a 20% taxpayer would now have to foot a tax bill of £3,330 a year, with 40% taxpayers paying £6,660 for their motor. Advertisement Most read in Motors Live Blog Breaking Live Blog Experts at Auto Traders have warned that more expensive models may see emissions tax bills go above the £7,000 mark. They said: "from April 2025 a £50k double cab Ford Ranger would fall into the 37 per cent BIK rate, meaning you'd need to pay £3,550 in tax if you were a 20 per cent taxpayer. "For people in the 40 per cent tax bracket, that new tax payment would be just over £7,000." The misery for Advertisement Pick-up drivers are now moving from a £757 van rate, to the hefty car fuel benefit multiplier of £28,200 - also varying according to emissions and income. Some experts have even warned that claiming fuel benefit won't be worth it for many truck drivers. To further turn the screw on pick-up owners, their Thankfully for double- Advertisement Anyone who bought or leased a pick-up before April 6 can stay under the old rules until 2029, providing a limited Leading tax firm Finsbury Robinson advised: "Many business owners will be considerably worse off, but choices can still be made to minimise tax liabilities.' Unsurprisingly, a petition against the changes has been launched, demanding Labour "reverse the Tax Treatment of Double Cab Pickup Trucks in the 2024 Autumn Budget". It highlights the potential harm to businesses these changes could make, and focuses on the crucial role pick-ups play in Advertisement Addressed to Rachel Reeves, it claims: 'We think this change will harm many businesses, farmers, tradespeople, and individuals relying on double cab pickups for "Reclassifying them as cars drastically raises costs by increasing Benefit in Kind tax and lowering their capital allowances. Any petition with 10,000 signatures will receive a formal response from the government, and any with 100,000 are considered for debate in Parliament. 2 Pick-up trucks will now be considered company cars by HMRC Credit: Getty Advertisement
Yahoo
19-03-2025
- Automotive
- Yahoo
Uproar over end of bargain deals for car industry staff
ECOS requires owners to sell a car back after six months or 6000 miles The government's plan to end what it has called 'contrived car ownership schemes' has rattled the UK's automotive industry, which forecasts devastating consequences for itself and its workers if this becomes law. The Employee Car Ownership Scheme (ECOS), which the government intends to end from 6 April 2026, differs from traditional salary sacrifice schemes in that the car is owned by the employee, not the employer. Operated mainly by car makers and their dealers, ECOS enables an employee to buy a brand new car at a hugely discounted price. Monthly repayment bills are very low, with little or no interest charged. Under the terms of the arrangement, the employee is required to sell the car back, typically after six months or 6000 miles. It's then replaced by another. Because the car is owned by the employee and so not deemed a company asset, the employee is not required to pay benefit-in-kind (BIK) tax or national insurance contributions. As such, the government believes this arrangement is neither legitimate nor fair, despite ECOS users being subject to heavy limitations. In her Autumn Budget, chancellor Rachel Reeves outlined measures to 'level the playing field' because 'this arrangement means those benefiting don't pay company car tax which other employees pay'. Speaking to Autocar, manufacturers said they had been given few details on the proposed changes and were still considering the government's plans. A spokesperson for Stellantis said the group was 'speaking directly to the UK government on the impacts and to understand further details and timings'. The Society of Motor Manufacturers and Traders (SMMT) said the chancellor's announcement had come as a 'complete surprise' after decades of the industry operating ECOS unchallenged. The SMMT questioned Treasury estimates that taxing ECOS cars as employee benefits would raise £275 million in the 2026-27 tax year and a further £590m over the following three years, because it believes this income would come at the expense of VAT and VED (road tax) on new cars no longer being sold. Urging the government to reconsider its plans, SMMT CEO Mike Hawes said: 'These schemes are an integral part of the remuneration packages that attract people into the industry and allow employees affordable access to the products they make. They are an important part of the new car market and provide a key source of nearly new vehicles to the used market. 'Removing these schemes would challenge manufacturers' business models, restrict their ability to retain and recruit staff and constrain efforts to decarbonise road transport. 'These [ECOS cars] are new models, reflecting the latest technologies and, as such, are increasingly electric, so to cut off this new and used vehicle supply at exactly the time the industry must drive up EV adoption would be a perverse step. 'Not only would this undermine industry and government net-zero ambitions, it would also be counterproductive to economic growth, actually decreasing government revenues from lost VAT and VED, and hurt working people and their families financially. 'We would urge government to think again about this proposal and support the industry and its workforce at this critical time.' The SMMT claims that each year, ECOS generates around 150,000 cars for the 'nearly new' market and are a valuable mix of popular vehicles and those, such as EVs, that customers would be wary of buying new. However, used car valuation experts have disputed the magnitude of the impact that ending ECOS would have on used market supply. A spokesperson for Cap HPI said: 'It won't have an impact on nearly new volumes. The numbers involved are tiny compared to daily rental. The [ECOS] vehicles are often on very strict mileage and there are strict rules on how long they can be kept.' Meanwhile, Ed Steele, MD of leading automotive recruitment specialist Steele-Dixon, has predicted that employee recruitment won't be so badly affected by the banning of ECOS. 'Banning the schemes will hamper recruitment, but then if everyone is suffering, I suspect the impact will not be so great,' he said. 'At the moment, the prospect is a worry but not yet a problem, and I'm sure the accountants and lawyers will come up with a solution. 'If they don't, a ban might be a good thing, since 99% of the people I deal with haven't a clue what it costs to pay for your own car. They should know what it's like for those people who do.' The prospect of a new car every six months on terms significantly better than anyone outside the car industry can enjoy sounds great, doesn't it? Not according to one manufacturer employee in receipt of the benefit. The employee, who asked not to be identified, has a 1.0-litre hatchback on his firm's ECOS that costs him just £85 per month. He pays no benefit-in-kind tax or national insurance contributions on it and it's replaced every six months. However, he says there are strict limits as to which model he can order and with which options, and even then, his order can be overruled by the factory and a different specification from the one he requested supplied. He must pay an excess mileage charge if he does more than 6000 miles in the car and any damage it suffers must be repaired by a manufacturer-approved garage whose prices, he says, tend to be higher than elsewhere. If he puts the car through a car wash, any swirl marks must be polished out at a cost of £80, and a chipped windscreen must be replaced, not repaired. 'The scheme is great in the sense that the car is cheap, and unless I damage the car, I don't have to budget for new tyres or servicing,' the employee said. 'The downsides are that it's quite inflexible and the higher refurbishment and repair costs put many employees with families off the scheme, because of the damage their kids might do to the car's interior. ]]>
The Independent
26-02-2025
- Automotive
- The Independent
Tesla's sales and shares are slumping. Are Elon's antics to blame?
Tesla has emerged from the latest European car registration numbers looking like a mangled wreck at the side of the road. Across the continent, the EV maker's sales slumped by 45 per cent in January, according to the European Automobile Manufacturers' Association (ACEA). This begs the question: could the politics of Elon Musk, CEO and chainsaw-wielding head of the Department of Government Efficiency (DOGE), be hitting the bottom line? Well… it's complicated. For a start, Tesla's popular model Y has undergone a redesign, which is the sort of thing that inevitably hits sales: people who buy pricey new cars usually want the most up-to-date model sitting on their driveway, so would be prepared to buy later. This delay has clearly had an impact. Tesla has also faced increased competition from other makers that produce smart, attractive EVs at what can be more competitive prices. 'Tesla's car sales fell year-on-year for the first time in more than a decade in 2024 and the early 2025 numbers from key markets like California and the EU look worse still,' said Russ Mould, from broker AJ Bell. "Whether this is down to wider slowdown in EV sales, stiff competition from BYD and other Chinese rivals or a buyers' strike because of Mr Musk's high-profile politics is hard to divine.' It's quite possible, even probable, that they're all playing a role. When I asked Fleet Alliance, a fleet management company which looks after more than 30,000 vehicles for business customers, whether they had seen an impact, the company said Tesla remained 'at the top of our order bank'. The Model 3 topped its sales charts in 2024, with the Model Y in second place for the second year in a row. However, business customers may be less sensitive to brands and the eccentric activities of CEOs so long as the product and the terms offered to them remain good. That's the case with Tesla. 'Both models offer benefits in terms of low monthly rentals and BIK (Benefits In Kind) rates which really appeal to our customers,' said CEO Andy Bruce, by way of explanation. But individual buyers may take a different view. 'It's no surprise that a brand so closely tied to its founder and main visionary is affected by the actions and ideas of its leader, for better or worse. The relationship between a brand and an associated celebrity has always been a double-edged sword,' said Gabor Schreier, chief creative officer at branding and design agency Saffron Brand Consultants 'In the automotive industry, facing massive transformation, global uncertainty, and intense competition, a brand like Tesla is particularly exposed. 'It's striking to see how quickly Tesla's customer base is reacting. Electric mobility is not yet for everyone, and people buying Tesla's may be more closely aligned with ideas that don't necessarily reflect what is dominating international headlines. A costly product like Tesla depends on audiences willing to invest in it, and those buyers often want to identify with the product, whether as a status symbol or a statement for progressive thinking.' So far, it's worth noting that the UK sales have declined by much less than in Europe. The Society of Motor Manufacturers here, which contributes to the ACEA figures, found sales in January fell by just 7.8 per cent. It seems that Musk's UK fans are more solid than their European peers. But Shreier's point makes a lot of sense. Tesla has clearly benefited from its powerful brand and been seen as a status symbol among EV drivers, in the same way as marque brands like Mercedes or Audi have been seen by petrol engine drivers in years past. Whether it still retains that is now open to question. Musk's deliberate seeking out of controversy, his provocations and his public statements stand in stark contrast to the way other big ticket CEOs of America's mega-cap tech businesses behave. It's not that the likes of Apple's Tim Cook, Alphabet (Google) boss Sundar Pichai, Meta's Mark Zuckerberg or Amazon founder Jeff Bezos don't have opinions. They do. And they aren't shy about making them known. Zuckerberg went so far as to appear on Joe Rogan's podcast, talking of the need for the company to have more 'masculine energy'. However, as a rule, tech bosses' views tend to be closely aligned to the interests of their businesses, and they are far more cautious and strategic in the way they voice them than Musk. Zuckerberg's statements, accompanied by the elimination of some safeguards over what had been perceived by some as 'hate speech', might have been cringeworthy. But they clearly had an aim in mind. President Trump and his supporters have been highly critical about what they see as censorship of conservative views and voices on social media. Zuckerberg's musings and his business moves were clearly aimed at heading off any possible blowback and cosying up to the White House. It isn't the first time Zuckerberg has said something cringey. But he is much less inclined to shoot from the hip, as Musk does. Wall Street will now be watching. Tesla's shares went on a tear following Trump's election as investors got excited about Musk's status as the US president's BFF. But recently they've been surrendering those gains, losing nearly a quarter of their value over the past month. The sales data only exacerbated that. 'The harsh reality is that 2024's operational results were terrible as net profits more than halved,' said Mould. However, the shares still sit on a fancy valuation which those results do not justify. 'Tesla needs to generate some rapid growth and some earnings forecast upgrades, and quickly – something which its many supporters will say it has done before, more than once,' he added. This is true. But it's tough to pull off repeatedly even with a fully engaged CEO who doesn't prance around with a chainsaw at the Conservative Political Action Conference (CPAC) with the aim of 'owning the libs '. Tesla investors pay Musk billions for what looks like a part-time job. There are a lot of fanboys among them who worship the ground he walks on. But they may find their ardour cooling if their shares continue to act like an EV with a flat battery.
