HMRC announced last week that double-cab trucks with a payload of one tonne or more would cease to be commercial vehicles and would instead be taxed as cars.
The new guidance suggested that whilst the status of single-cab trucks would remain unchanged, double cabs would lose their commercial status.
This posed potential cost implications for numerous rural users of such vehicles, from large multi-vehicle agri-businesses to small business single vehicle operators such as farriers.
The NFU argued that this change would disproportionately and unfairly impact rural businesses, and could lead to many DCPU users having to move to single cabs and then buy a second vehicle for movement of people, defeating any CO2 gain envisaged in the updated guidance.
Essential vehicles for businesses
In an updated statement on 19 February, HMRC said: “The government has listened carefully to views from farmers and the motoring industry on the potential impacts of the change in tax-treatment.
“The government has acknowledged that 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.”
NFU President Tom Bradshaw said: “Sometimes politicians and officials don’t get the credit they deserve for listening to coherent arguments made in good faith and with solid evidence. In this case that’s exactly what’s happened and we’re delighted the government has done the right thing by farmers.”
