HMRC makes U-turn on road tax hike plan to help farmers

Dairy farmer in Gloucestershire

Farmers in Devon and across the UK have been handed a boost after the HMRC made a U-turn on its proposed tax hike for double-cab pickup trucks. The proposal had the potential to significantly impact farmers and van drivers.

Plans announced on Monday, February 12 stated that the vehicles would be classed as company automobiles rather than commercial. This would have increased their tax liability from July 1.

As reported by The Express, double-cab pickup drivers would pay tax through the emission-based system for company vehicles. The move could have seen some pickup truck owners move into the highest 37 per cent benefit-in-kind (BIK) rate.

However, it has been confirmed that the vehicles will maintain their status as goods vehicles. This will benefit owners such as farmers.

Current rates involve a 20 per cent taxpayer putting up £60 a month or £120 a month for those on the higher tax rate. Proposed company car rules would have seen a 20 per cent taxpayer paying over £291 per month, while a 40 per cent taxpayer may be liable for £582 per month.

The HRMC stated on its website: “The government has acknowledged that the 2020 court decision and resultant guidance update could have an impact on businesses and individuals in a way that is not consistent with the government’s wider aims to support businesses, including vital motoring and farming industries.”