HMRC has now announced that their revised guidance released on 12 February, which saw HMRC take into account the infamous Coca-Cola case decision on the classification of double cab pickups, is to be withdrawn with immediate effect.

On 12 February, HMRC released new guidance on the treatment of double cap pickups, which would have seen the majority of these vehicles being classified as company cars. This guidance would have led to significant increases in benefit charges and the withdrawal of Annual Investment Allowance (“AIA”) and Full Expensing Relief from the 1 July 2024. See our previous article for more information.

Since this announcement last week, HMRC has consulted with farmers and the motoring industry, which has led to them making this sudden U-turn. In these consultations, the government acknowledged the impact their ‘new’ guidance would have had on businesses and individuals and concluded that its announcement was “not consistent with the government’s wider aims”.

This means that double cab pickups will continue to be classified in line with the interpretation of the legislation for VAT purposes, thus, double cab pickups of more than 1 tonne will continue to be classified as vans for benefit in kind and capital allowance purposes.

This is good news for those considering using these vehicles in their businesses or providing them to their employees.

Will this be the end of the story? Make sure to follow Rickard Luckin across our social media platforms for more updates.