Huge NEW COMPANY CAR TAX on PICKUP TRUCKS from April 2025

Hello folks, some time ago I did a video about how the government were planning to bring in company car tax on pickup trucks. In fact they announced it. There was such a backlash against it that they then did a fairly quick u-turn. Now one of the things that flew under the radar a little bit with last week's budget is that the Labour Party are going to do that again. By the way I'm not party political, I think party politics is a nonsense and I always say I'll vote for the next politician that answers direct questions with yes or no. But the bad news folks is that if you've got a double cab pickup from April 2025 you could be getting charged over £7,000 a year in company car tax on it. Now previously if your double cab pickup truck had a payload of over one ton you didn't have to pay full company car tax on it, full benefit in kind. But all that is about to change. Let me explain a bit further. Benefit in kind is basically an amount of money that's put onto the amount you earn for tax purposes because you've received some kind of benefit that has some kind of cash equivalent. That could be something as simple as a gym membership given to you by your employer or indeed a company car. Now let's say for example you earn £45,000 a year but you also have benefit in kind of £20,000. That's going to push you into the 40% tax bracket so even though your earnings are at 20% tax level the benefit in kind would push you into that next bracket and that's potentially fairly disastrous if you've also got a company car because it effectively doubles the amount of company car tax you're paying. So in the small print of the autumn budget we find that from April 2025 for corporation tax and from April the 6th 2025 for income tax it says that double cab pickups will be treated as cars for the purpose of capital allowances, benefit in kind and some deductions from business profits. So obviously this video is just looking at the benefit in kind aspect of this to give you an idea of what that works out to in pound shillings and pence. At the moment if you've got a pickup truck and it's a commercial vehicle so it's got a payload of over a ton the benefit in kind amount is only £3,960 because that's the sort of fix on a commercial vehicle. That's going away. Every double cab pickup will be treated as a car for company car tax purposes and don't forget that company car tax is calculated on the value of the car, the list price of the car when new and the CO2 emissions figure and pickup trucks generally don't have a great CO2 emissions figure. So a Ford Ranger with a list price of circa £48,000 and CO2 emissions of more than 170 grams per kilometre would be in the 37% bracket and that means the benefit in kind amount is 37% of the list price of the car and you're then paying either 20% or 40% income tax on that. Of course you might be paying 45% if you earn lots of money. So that car that I'm talking about there £48,000 list price Ford Ranger in the 37% tax bracket. If you're a 20% taxpayer it's now going to cost you three and a half grand a year in tax. If you're a 40% taxpayer £7,100 a year in tax. So that's going to come directly out of your pocket because you happen to have a double cab pickup. Obviously lots of people that have limited companies have a pickup truck as a company car themselves and even people working for companies sometimes have a pickup truck as a company vehicle and not everyone has that as a perk. Some people have that because they need it to do their job. People like linesmen that are driving across fields all the time. Farmers use a pickup truck as a builder uses a hammer. It's a fairly basic tool on a farm. Yes you can also nip to Tesco's in it but if you've got a car at home maybe that's not such an attractive proposition. There are loads and loads of trades where a pickup truck is a bit of an essential thing to have. Not just for the fact that it's got an open back but for the fact that it can go off-road fairly seriously as well. I think this is appalling news and the fact that it's flown under the radar so much and seems to have avoided a lot of the fanfare of some of the other things in the budget is also really disappointing. I just did a video on how the budget affects you and I didn't know this had actually come back. I knew it was rumoured to be coming back but I didn't know it'd come back because as far as I could see none of the major news sites really covered it and I just think that's shocking. What do you think about this folks? How's it going to affect you? Will you still be able to do your job in the same way or does it simply mean you now need to get rid of your perfectly good pickup truck with a payload of under a tonne to replace it with a bigger one that's going to pollute more that you don't actually really need the extra payload? Once again this just strikes of attacks on working people. Keir Starmer really struggled to actually say what the working person was. He couldn't really define it when asked the other week even when under a bit of pressure. Well I class a working person as a person with a job whether that be someone scrubbing a toilet or whether it be someone that's CEO of a multinational company. They're all working people. What do you think about this folks? Let me know your thoughts in the comments. Thanks so much for watching. Please don't forget to give me a thumbs up and to subscribe to the channel and I'll catch you on the next one. Huge thanks to all my channel members for your continued support. I really do appreciate it.