AdWords are invoiced from the Republic of Ireland and subject to ‘Reverse Charge‘ VAT.
When you buy services from suppliers in other countries, you may have to account for the VAT yourself – depending on the circumstances. This is called the ‘reverse charge’, and is also known as ‘tax shift’. Where it applies, you act as if you are both the supplier and the customer – you charge yourself the VAT and then, assuming that the service relates to VAT taxable supplies that you make, you also claim it back. So there’s no net cost to you – the two taxes cancel each other out. [HMRC]
If you can’t give Google a UK VAT registration number they will charge Irish VAT at 21%.
If you can supply a VAT registration number you won’t be charged Irish VAT and will be subject to ‘Reverse Charge’, this means you calculate the amount of VAT – Output Tax – on the full value of the services supplied to you, and then fill in the relevant boxes on your VAT Return as follows:
put the amount of VAT you calculated in Box 1, and if you’re entitled to reclaim the VAT on your purchase of these supplies, also put the same figure in Box 4 (this in effect cancels out the figure in Box 1)
put the full value of the supply in both Box 6 and Box 7
So all the figures net off to Zero!
If you make reverse charge sales – sales to which a reverse charge is applied – you must notify HMRC and send in regular Reverse Charge Sales Lists.
Linked In invoices are also subject to ‘Reverse Charge’ this is how you can give Linked In your VAT Registration:
If you purchase LinkedIn products for business purposes, you can provide your Value Added Tax # (for European Union or EU VAT customers) for proper tax handling. This information can be added for future orders (not past receipts) on the Payment section of your Privacy & Settings page.
To add your VAT number:
Move your cursor over your profile photo in the top right of your homepage and click Privacy & Settings. For verification purposes, you may need to sign in again.
Click Manage Billing Info.
Click Edit next to the VAT # field.
Enter the 2-character country code followed by your VAT#. For example, LinkedIn’s Irish VAT# is IE9740425P.
Click Update.
Here is a great guide I found which explains how to master adwords
There are five key tests that a loan from a Pension Scheme must satisfy to qualify as an authorised employer loan. If a loan fails to meet one or more of these tests an unauthorised payment charge will apply.
If a registered pension scheme makes a loan to an employer the amount of the loan must be secured throughout the full term as a first charge on any asset either owned by the sponsoring employer, or some other person, which is of at least equal value to the face value of the loan including interest.
If the asset used as security is taxable property then there may be additional tax charges under the taxable property provisions if the registered pension scheme is an investment regulated pension scheme.
Taxable property consists of residential property and most tangible moveable assets. Residential property can be in the UK or elsewhere and is a building or structure, including associated land, that is used or suitable for use as a dwelling. Tangible moveable property are things that you can touch and move. It includes assets such as art, antiques, jewellery, fine wine, classic cars and yachts.
Interest Rates [S179, Sch 30]
All loans made by registered pension schemes to employers must charge interest at least equivalent to the rate specified in The Registered Pension Schemes (Prescribed Interest Rates for Authorised Employer Loans) Regulations 2005 (SI 2005/3449). This is to ensure that a commercial rate of interest is applied to the loan.
The minimum interest rate a scheme may charge is calculated by reference to 1% above the average of the base lending rates of the following 6 leading high street banks:
The Bank of Scotland
Barclays Bank plc
HSBC plc
Lloyds TSB plc
National Westminster plc and
The Royal Bank of Scotland plc.
The average rate calculated should be rounded up as necessary to the nearest multiple of ¼%.
Term of Loan [S179, Sch 30]
The repayment period of the loan must not be longer than 5 years from the date the loan was advanced. The total amount owing (including interest) must be repaid by the loan repayment date.
Maximum Amount of Loan [S179, Sch 30]
Section 179 (1)(a) of Finance Act 2004 restricts the amount of a loan which can be made to a sponsoring employer to 50% of the aggregate of the amount of the cash sums held and the net market value of the assets of the registered pension scheme valued immediately before the loan is made. These restrictions are necessary because although such loans provide a useful source of business funding, there may be liquidity problems for the scheme if there is a sudden requirement to provide scheme benefits. It may also not be prudent to lend scheme funds to one company.
Repayment Terms [S179, Sch 30]
All loans to employers must be repaid in equal instalments of capital and interest for each complete year of the loan, beginning on the date that the loan is made and ending on the last day of the following 12 month period – known as a loan year.
Often Land and Commercial Property are used as the security for Pension Scheme loans but the problem is having first charge over the asset!
This often causes confusion, firstly because many people wrongly assume that IPT (Insurance Premium Tax) is VAT, it isn’t! and then when they make a claim they may get a VAT only invoice.
Insurers cannot recover any VAT incurred in obtaining replacement goods or having repairs carried out for a policy holder. The supply of goods (or services in the case of repairs) is considered to be made to the policy holder. This is so even when payment is made directly to the supplier by the insurer.
Subject to the normal rules a VAT registered policy holder may treat any VAT incurred on the supply as input tax. The insurer will normally pay the policy holder compensation exclusive of VAT. The policy holder will pay the supplier the tax and recover it as input tax.
If an insurance claim is for loss or damage at a domestic property you should make sure that any VAT claimed as input tax relates only to goods used for a business purpose.
Insurance and reinsurance is exempt from VAT under article 135 of the Sixth VAT Directive.
This also explains why an insurer may ask a contractor engaged in repair work not to invoice them VAT, its simply that they want the VAT only element to be invoiced to the insured.
I read about Simple Tax in an article in the Express…
Backed by venture capital investors including EC1 Capital, Seedcamp and Charlotte Street Capital, SimpleTax was set up to help customers find ways to save money on their tax bills and file returns online with HMRC in minutes, without the expense of employing an accountant.
SimpleTax’s users have so far cut a total of £2.5 million from their tax bills
So I tried it out, it’s great and it’s free.
You will need your HMRC Online filing details if you want to file your return alternatively you can just print out the return.
For taxpayers who have straightforward returns Simple Tax should make it quicker and easier to complete and file online.
As you prepare the return Simple Tax gives you tips on things you can claim and ways to save tax.
The best known Virtual Currency (although not named by the EBA) is Bitcoin.
The European Banking Authority, the EBA, has called on national supervisory authorities to discourage banks and credit institutions from buying, holding or selling virtual currencies. It calls for regulation of market participants at the interface between conventional and virtual currencies. Over the longer-term, the EBA is calling for a ‘substantial body’ of regulation to be applied to virtual currency market participants, including the creation of ‘scheme governing authorities’ accountable for the integrity of a virtual currency scheme and the imposition of capital requirements. In the short term, the EBA is calling for national authorities to ‘shield regulated financial services from virtual currencies’.
So do you think Virtual Currencies are useful and worthwhile?
The UK has seen the fastest growth in self-employment in Western Europe over the past year, according to the Institute for Public Policy Research (IPPR).
The number of self-employed workers rose by 8%, faster than any other Western European economy, and outpaced by only a handful of countries in Southern and Eastern Europe.
The IPPR’s analysis shows that the UK – which had low levels of self-employment for many years – has caught up with the EU average. If current growth continues, it says, the UK will look more like Southern and Eastern European countries which tend to have much larger shares of self-employed workers.
Something like 80% of all the new jobs created since 2010 are, in fact, self-employments, and there are a number of things that very significantly differentiate self-employments from jobs.
The first is security: there is none.
The second is durability: vast numbers of new small businesses fail, which is one reason why I doubt the official statistics. I am sure they record the supposed start-ups correctly but seriously doubt if they have properly counted the failures.
Then there is the issue of pay. The evidence is overwhelming that in recent years earnings from self-employment have, on average, declined significantly.
A worker’s employment status, that is whether they are employed or self-employed, is not a matter of choice. Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement.
Many workers want to be self-employed because they will pay less tax, this calculator gives you a quick comparison between being employed, self employed or taking dividends in a limited company.
HMRC have a an employment status tool to help you determine whether a worker can be self-employed or should be an employee http://www.hmrc.gov.uk/calcs/esi.htm
In summary, why is it attractive to use Self Employed Freelancers?
Skill is more important than location in many business sectors – we live in world where internet can allow you to work with anyone at anytime, you can now track down the best person to work with even if they live thousands of miles away
Lower fixed costs – Using Freelancers will lower your fixed costs (in similar way to Zero Hours Contracts), you employ them for a specific project and only pay for what you need so there isn’t any surplus capacity
Tax advantages – Freelancers run their own business and that means they pay less tax than employees. Employers save tax too, such as Employers NI.
Competitive Advantage – You can put together a team for a contract rather than finding contracts that fit your workforce, this means you can hire the best.
110% Commitment – A Freelancers success and future work depends on them performing to the highest level on every contract, failure is not an option for a successful contractor.
So do you think self employment is good for the UK?
According to the Construction Products Association summer forecasts, output will rise by more than 22% over the next five years. Private housing starts are expected to grow by 18% in 2014 and 10% in 2015. Commercial offices output is also projected to grow 10% this year and 8% in 2015.
The CITB Construction Skills Network predicts that 182,000 new jobs will be created in the UK construction industry between 2014 and 2019 as employment rises for the first time since the start of the recession in 2008.
A Close Brothers survey in May showed that 65% of construction firms admit that access to cash is a major challenge for their business.
So can we keep pace? where will the construction workers come from? and will we be able to fund the projects?
As long as the home you give away is your main home, Capital Gains Tax won’t be payable.
However, if you give away a second home, Capital Gains Tax may be payable if the property has increased in value between when you first owned it and when you gave it away.
If you sell your second home and give the money to your children, the gift won’t be included in your estate for Inheritance Tax purposes, provided you live for 7 years after you make the gift.
Each year individuals have a capital gains tax allowance, called an exemption
Annual Exempt Amounts
Customer group
2012-13
2013-14
2014-15
Individuals, personal representatives and trustees for disabled people
£10,600
£10,900
£11,000
It is possible to to gift property in stages.
Your solicitor will draw up the required documents to conveyance a percentage of the property and register the transactions with the Land Registry.
In order to calculate the capital gain you will need to know the acquisition cost and any reliefs such as PPR.
Giving away your property in stages could save you from having to pay capital gains tax.
The person you give the property to may not have to pay SDLT…
If the property is received as a gift there’s no SDLT to pay, so long as there’s no outstanding mortgage on it.
Double-Cab Pickups, Crew Vans and Commercial Vehicles Explained – Updated for 2026
Originally published August 2014 – substantially updated September 2026
It makes a big difference whether a vehicle is treated as a:
CAR
or:
VAN
for tax purposes.
That was the central point of the original version of this article back in 2014, and it remains just as important today.
The main differences include:
Benefit in Kind – company cars are generally taxed by reference to list price and CO₂ emissions, whereas vans have a different benefit regime.
Capital Allowances – cars have their own more restrictive capital allowance rules, while qualifying vans and commercial vehicles may potentially qualify for allowances such as AIA.
VAT – input VAT on an ordinary company car is heavily restricted, while recovery on genuine commercial vehicles can be much more favourable.
But one of the biggest rules affecting double-cab pickups changed from April 2025.
So if you remember the old:
“ONE-TONNE PAYLOAD = VAN”
rule, be careful.
For several important direct taxes, that is no longer the current answer.
Quick Answer – Is It a Car or a Van?
The key test for employment-tax purposes is based on the vehicle’s construction.
HMRC looks at whether the vehicle is:
of a construction primarily suited for the conveyance of goods or burden
rather than simply asking what the dealer calls it or how the business happens to use it.
HMRC’s guidance stresses that a vehicle may be capable of more than one purpose, but to escape classification as a car it needs a predominant goods-carrying suitability. If neither passenger use nor goods use predominates, HMRC’s view is that the vehicle is a car.
Broadly:
Conventional panel van
Normally a van.
Single-cab pickup
Normally accepted as a van.
Double-cab pickup
Most are now expected to be cars for BIK purposes where the post-April-2025 rules apply.
Crew van / kombi / combi vehicle
Potentially more difficult — construction needs to be reviewed.
The question is therefore:
WHAT IS THE VEHICLE FIRST AND FOREMOST SUITED TO CARRY?
What Was the Old Double-Cab Pickup Rule?
The original 2014 article explained the historic position.
From 2002, HMRC generally aligned the employment-tax treatment of double-cab pickups with the VAT approach.
A double-cab pickup with a payload of:
1 TONNE / 1,000KG OR MORE
was generally accepted as a van for Benefit in Kind purposes.
Payload broadly meant:
maximum gross vehicle weight
less:
unladen / kerb weight.
That was a simple and widely understood test. HMRC’s historic guidance confirms that this one-tonne rule applied from 6 April 2002 to 5 April 2025.
But that treatment was essentially a pragmatic shortcut.
HMRC stopped applying the one-tonne VAT payload test to determine whether a double-cab pickup is a car or van.
The vehicle must instead be assessed as a whole using the primary suitability test.
HMRC says this applies to double-cab pickup variants including vehicles described as:
extended cab;
extra cab;
king cab;
super cab.
And HMRC expects most to be treated as cars because they are generally equally suited to passengers and goods.
Worked Example – Double-Cab Pickup Bought in 2026
Suppose Consultancy 4 Business Ltd buys a new double-cab pickup in September 2026.
It has:
Five seats
Four doors
Large rear load bed
Payload of 1,050kg
Under the old rules, that:
1,050KG PAYLOAD
would have been extremely important.
Under the current BIK rules, it no longer determines the result.
The vehicle must be assessed as a whole.
If it is equally suited to transporting:
passengers
and:
goods
with no clear predominant goods-carrying purpose, HMRC would generally expect it to be classified as a:
CAR
for company-car Benefit in Kind purposes.
Transitional Rules – Older Pickups Can Still Be Treated Differently
There is an important transitional rule.
If the employer:
bought;
leased; or
ordered
a qualifying double-cab pickup before 6 April 2025, the old BIK treatment can continue until the earliest of:
disposal;
lease expiry; or
5 April 2029.
So two identical pickups can currently have different BIK treatment because one was ordered before the change and the other afterwards.
Example – Ordered Before April 2025
Suppose a company ordered a qualifying double-cab pickup in:
January 2025
but delivery took place in:
September 2025.
Because the contract was entered into before 6 April 2025, the transitional rules can preserve the former BIK treatment until the relevant transitional period ends.
Now compare that with exactly the same model ordered in:
May 2025.
The new primary-suitability rules apply.
So you can have:
SAME VEHICLE
but:
DIFFERENT TAX TREATMENT
because of the acquisition date.
Capital Allowances Changed Too
The change isn’t limited to employee Benefit in Kind.
For capital allowance purposes, HMRC changed its interpretation for expenditure incurred from:
1 April 2025
for Corporation Tax,
and:
6 April 2025
for Income Tax.
Before those dates, a double-cab pickup with a payload of at least one tonne was generally not treated as a car.
After those dates, the one-tonne rule is no longer used to exclude the vehicle automatically from the car definition.
Instead, the primary suitability approach is applied.
HMRC expects many double-cab pickups to be treated as cars for capital allowance purposes too.
Why Does That Matter for Capital Allowances?
Cars have their own capital allowance regime.
Qualifying vans and commercial vehicles may potentially qualify for much more generous allowances such as:
Annual Investment Allowance;
Full Expensing where the conditions apply;
other plant and machinery allowances.
Cars do not automatically qualify for those same allowances.
So moving from:
VAN
to:
CAR
can radically change the speed at which the business obtains tax relief.
HMRC gives an example of a September 2025 double-cab pickup purchase where the new interpretation means the vehicle is likely to be a car and therefore does not qualify for AIA or Full Expensing.
What About Older Contracts?
There were transitional capital allowance provisions for contracts entered into before the change.
For example, HMRC’s guidance illustrates circumstances where expenditure incurred after the new rules commenced can retain the old treatment because the underlying purchase contract was entered into beforehand.
Those rules are now mainly relevant when reviewing:
2025 transactions;
older capital allowance claims;
amended accounts or tax returns.
What About Leased Double-Cab Pickups?
The same issue can affect deductions for leasing costs.
For hire expenditure incurred from:
1 April 2025 for Corporation Tax; and
6 April 2025 for Income Tax,
HMRC no longer automatically treats a one-tonne double-cab pickup as outside the car definition.
The broader car definition and primary-suitability test apply instead.
So classification potentially affects:
BIK
CAPITAL ALLOWANCES
and:
LEASE RENTAL DEDUCTIONS
But VAT Is Different
This is probably the most surprising part.
THE VAT RULE DID NOT CHANGE
HMRC specifically confirms that the post-April-2025 BIK change does not alter the VAT input-tax treatment of double-cab pickups.
For VAT, HMRC’s long-standing agreement with the Society of Motor Manufacturers and Traders still uses the:
ONE-TONNE PAYLOAD TEST
Broadly:
Payload below 1 tonne
treated as a car.
Payload of 1 tonne or more
not treated as a car for VAT under the agreed approach.
That means the same vehicle can potentially be:
A CAR FOR BIK
A CAR FOR CAPITAL ALLOWANCES
but:
A COMMERCIAL VEHICLE FOR VAT
That is a crucial distinction.
Same Vehicle – Different Tax Definitions
You therefore need to ask which tax you are considering.
Tax
Possible treatment of post-2025 double-cab pickup
Benefit in Kind
Often car
Capital Allowances
Often car
Lease deductions
Car rules may apply
VAT
Potentially commercial vehicle if payload ≥1 tonne
Vehicle Excise Duty
Separate rules
HMRC expressly confirms that the 2025 changes did not alter VAT or Vehicle Excise Duty treatment.
So:
“The dealer told me it’s a commercial vehicle.”
isn’t enough.
The correct response is:
“COMMERCIAL VEHICLE FOR WHICH TAX?”
The Original Hard-Top Rule Still Matters for VAT
The original 2014 article also discussed hard tops.
HMRC’s longstanding agreement gives a hard top made from materials such as:
metal;
fibreglass;
similar materials
a standard weight of:
45KG
when applying the VAT payload test.
So if a pickup has an ex-works payload of:
1,010kg
adding the standard 45kg hard-top adjustment reduces the payload to:
965kg
which can cause the vehicle to fall below the one-tonne VAT threshold.
That historic point from the original article therefore remains useful.
But remember:
THIS IS NOW PRINCIPALLY A VAT PAYLOAD ISSUE
It no longer decides the current BIK or capital allowance treatment.
What About Single-Cab Pickups?
These are generally much easier to classify.
A conventional single-cab pickup with:
one row of seats;
substantial rear load area;
construction clearly focused on carrying goods
is much more likely to satisfy the goods-vehicle test.
The important point, however, is that there is still no magic rule that:
“one row of seats always equals van.”
HMRC says the vehicle must still be considered on its actual construction and predominant purpose.
What About Crew Vans and Kombi Vehicles?
This is where the Coca-Cola principles become particularly relevant.
Crew vans, combis and kombi-style vehicles may combine:
second-row seating;
windows;
substantial passenger accommodation;
rear load space;
bulkheads;
removable seats.
The badge doesn’t determine the tax treatment.
Relevant construction features can include:
proportion of passenger space to load space;
seating configuration;
windows;
doors;
bulkhead;
height and volume of cargo area;
overall design.
A vehicle with two rows of seats is not automatically a car.
HMRC expressly recognises that some two-row vehicles can still have a load area so substantial that their construction remains predominantly goods-focused.
But if neither passenger nor goods use clearly predominates:
CAR
is the likely result.
Business Use Doesn’t Turn a Car Into a Van
This is worth repeating.
Suppose a surveyor or builder drives the vehicle exclusively:
to sites;
carrying equipment;
transporting materials.
That doesn’t determine the classification.
The Coca-Cola case reinforces the principle that the test concerns the construction and primary suitability of the vehicle, not simply how an individual employer happens to use it.
Actual business use is still relevant to other tax questions.
It just doesn’t rewrite the car/van definition.
Benefit in Kind – Why Classification Matters
If a company provides a car to a director or employee and it is available for private use, the taxable benefit is generally based on:
list price;
CO₂ emissions;
availability;
fuel type.
That can produce a substantial annual tax charge.
Vans are treated differently.
A genuine van can potentially avoid a van Benefit in Kind where the relevant conditions restricting private use are satisfied.
So moving from:
VAN BIK
to:
CAR BIK
can have a significant personal tax cost.
VAT – Vans Can Still Have an Advantage
The original article said:
“You can reclaim VAT on Vans but it’s much harder to reclaim VAT on cars.”
That remains a useful practical summary.
For ordinary cars, VAT recovery on purchase is generally heavily restricted where there is private availability.
Commercial vehicles instead broadly fall under the normal business/private-use VAT principles.
HMRC’s VAT guidance explicitly distinguishes the input-tax block for cars from the treatment of commercial vehicles.
So a vehicle’s VAT classification can materially change the effective purchase cost.
Worked Example – £48,000 Double-Cab Pickup
Suppose Consultancy 4 Business Ltd buys a double-cab pickup in September 2026.
Net price
£40,000
VAT
£8,000
Total
£48,000
The vehicle has:
five seats;
four doors;
substantial rear load bed;
1,050kg payload.
Its potential treatment could be:
BIK
Likely car, if it lacks predominant goods-carrying suitability.
Capital allowances
Likely car, under the current direct-tax interpretation.
VAT
Potentially a commercial vehicle because it meets the continuing one-tonne VAT payload test.
So it may potentially receive favourable VAT treatment while simultaneously being taxed as a car for:
BIK
and:
CAPITAL ALLOWANCES
That’s why this issue needs to be reviewed tax by tax.
Should You Still Buy a Double-Cab Pickup?
Historically, double-cab pickups offered an attractive combination:
five seats;
useful load space;
towing capacity;
potential VAT recovery;
van capital allowances;
favourable van BIK.
That combination changed materially from April 2025.
If you’re considering spending:
£40,000
£50,000
or:
£60,000+
on a double-cab pickup, don’t base the decision on the tax treatment you remember from five or ten years ago.
Compare it with:
genuine van;
single-cab pickup;
electric company car;
personally owned vehicle + business mileage;
other commercial vehicles.
The answer may now be very different.
Car or Van? 10 Things to Check Before You Buy
What is the vehicle’s actual construction?
Single cab or double cab?
How many seats?
How substantial is the passenger accommodation?
How substantial is the goods area?
Is there a permanent bulkhead?
What is the payload for VAT purposes?
When was the vehicle ordered or acquired?
Which tax are you considering?
What would an alternative vehicle cost after tax?
The question isn’t:
“Does the manufacturer’s brochure say commercial?”
It is:
“HOW IS THE VEHICLE CLASSIFIED FOR THIS PARTICULAR TAX?”
Frequently Asked Questions
Is a double-cab pickup still a van for tax?
For many direct taxes, most newly acquired double-cab pickups are now expected to be cars where the post-April-2025 rules apply.
What did the Coca-Cola case decide?
The Court of Appeal confirmed that a vehicle must have a predominant goods-carrying suitability to fall outside the car definition. If passenger and goods suitability are essentially equal, the vehicle does not satisfy the test.
Does actual business use decide whether it is a van?
No. The classification test focuses on construction and primary suitability.
Does the one-tonne rule still apply?
For BIK and current capital allowance treatment of double-cab pickups, it is no longer the determining rule.
For VAT:
YES, IT STILL MATTERS.
Can a pickup be a car for Income Tax and a van for VAT?
Yes.
The tax definitions do not fully align.
What if the pickup was ordered before 6 April 2025?
The transitional BIK rules may allow the previous treatment to continue until the earlier of disposal, lease expiry or 5 April 2029.
Does fitting a hard top still matter?
Potentially for the VAT one-tonne payload test, because HMRC’s historic 45kg hard-top agreement remains relevant to that calculation.
Are crew vans automatically vans?
No.
Their actual construction and primary suitability need to be considered.
Thinking About Buying a Car Instead?
If the vehicle is going to be taxed as a car anyway, it may be worth stepping back and comparing the alternatives.
This is particularly worth reviewing if you were originally considering a double-cab pickup primarily because of its historic tax advantages.
Bicknell Business Advisers’ Advice
The question we asked in 2014 was:
IS IT A VAN OR A CAR?
That’s still the right question.
But in 2026, you often need to ask it more than once:
CAR OR VAN FOR BIK?
↓
CAR OR VAN FOR CAPITAL ALLOWANCES?
↓
CAR OR VAN FOR LEASE DEDUCTIONS?
↓
CAR OR COMMERCIAL VEHICLE FOR VAT?
And:
THE ANSWERS CAN BE DIFFERENT
The Coca-Cola case explains why the direct-tax approach changed.
The historic one-tonne rule was simple.
The current test is more fundamental:
WHAT IS THE VEHICLE PRIMARILY SUITED TO DO?
If you’re considering a double-cab pickup, crew van or other multi-purpose vehicle, check the tax position before ordering it, rather than assuming the dealer’s classification or the old one-tonne rule gives the answer.
How We Can Help
At Bicknell Business Advisers, we can help business owners and company directors review:
whether a vehicle is a car or van for tax;
double-cab pickups;
crew vans and kombi vehicles;
the Coca-Cola primary-suitability test;
transitional rules;
Benefit in Kind;
capital allowances;
VAT;
lease deductions;
business/private use;
and alternative vehicle options.
For a significant vehicle purchase, checking the tax treatment before signing the order can prevent an expensive surprise.
No private use? How Do You Prove No Private Use of a Company Car?
Pool cars When Can a Company Car Be a Tax-Free Pool Car?
About the Author
Steve Bicknell FCMA, CGMA is Managing Director of Bicknell Business Advisers Limited, specialising in property taxation, landlord tax planning, SDLT, Capital Gains Tax and property company structures throughout the UK.
As part of the ongoing mission to create a simpler and fairer tax system the Office of Tax Simplification (OTS) has been tasked with carrying out reviews of employment status and also tax penalties, with a view to producing a report in time for next year’s Budget.
According to the OTS, the boundary between employment and self-employment no longer reflects modern working patterns, particularly in recent years. Many people have multiple jobs and can be classed as employed in one whilst self-employed in another. The rise of the freelancing business model has also caused some to suggest this is a ‘third way’ between employment and self-employment.
A worker’s employment status, that is whether they are employed or self-employed, is not a matter of choice. Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement.
Many workers want to be self-employed because they will pay less tax, this calculator gives you a quick comparison between being employed, self employed or taking dividends in a limited company.
HMRC have a an employment status tool to help you determine whether a worker can be self-employed or should be an employee http://www.hmrc.gov.uk/calcs/esi.htm
It will be interesting to see the report that the Office of Tax Simplification (OTS) produce, especially if they find a ‘third way’