April 24, 2024
Tax is one thing – MOT is another
In a plot twist that could rival the most dramatic soap opera, the British government has executed a lightning-fast U-turn on its plans to change tax rules for double cab pick-up trucks. It all started with an announcement that from July 1 2024, these trucks would be treated like cars for tax purposes. But hold on to your seats, because just a week later, they hit reverse faster than a Formula 1 racer.
The initial idea was to shake up the tax treatment of these trucks, bumping them into the car tax category if they had a payload of one tonne or more. This move would’ve had serious financial implications, messing with things like capital allowances and benefit-in-kind perks. But the plot thickened when the motor retail industry threw a spanner in the works, kicking up a storm of protest… or more likely the landed gentry didn’t fancy the tax burden on their farm trucks!
Cue the government’s sudden change of heart. They realized their plan could put a dent in the wallets of businesses, especially those in farming and transportation. So, they scrapped the whole thing and decided to stick with the status quo. Double cab pick-up trucks would remain firmly in the goods vehicle camp, much to the relief of many.
In a classic “sorry, our bad” move, the government admitted they hadn’t quite thought things through. Nigel Huddleston from the Treasury played the hero, promising to iron out any unintended wrinkles for hard-working folks in farming.
But amidst the chaos, spare a thought for those in the automotive industry. Ian McMahon, automotive partner at UHY Hacker Young, summed it up perfectly: clear and consistent policy decisions are the fuel that keeps the motor sector’s engine running smoothly. He called for more consultation with the industry to avoid future plot twists that leave everyone scratching their heads.
But what of the MOT Consultation of early 2023, yes we decided not to change the first date of an MOT, but hybrids still wobble about the country with no signs of an emissions test.. I can only guess that plenty of policy influencers care about tax on their pickups and screw the environment.
As the curtain falls on this tax drama (read: Dumbf**kery), it’s a reminder of the toothless tiger that is policymaking… or perhaps just something to suit the needs and desires of those making the policies.
The policymakers conclude that this episode is more of a smooth ride down the highway of economic stability. But for now, let’s raise a toast to the double cab pick-up truck – be it a class 4 or a class 7 mot we can be sure that sales will remain strong and MOT will remain entirely under utilised until it serves to gain political value.
