Business Users
Towing Legislation BookletThe Isuzu Rodeo Double Cab has won critical acclaim for its bullet proof reliability and best- in-class, fit for purpose engineering and countless best in class attributes. With a payload of 1000kg+, the Isuzu Rodeo is classed as Light Commercial Vehicle, even with a canopy and accessories fitted.
Do Pick Up trucks still attract tax advantages?
From 6th April 2011 the BIK tax levy changed, but the answer is still a big 'YES'! Driving an Isuzu Rodeo can save you significant amounts of tax compared to an equivalently priced non LCV (Light Commercial) vehicle.
If you drive an Isuzu Rodeo for unrestricted private use, your BIK liability is £3,000 x your marginal tax rate as from the 6th April 2011. Therefore, a 40% tax payer will pay only £1,200 in tax (a 20% tax payer will pay just £600).
If your employer provides your fuel to include unrestricted private use, an additional BIK liability of £550 will apply. The actual tax payable is calculated on the same basis: a 40% tax payer will pay only £220 (a 20% tax payer will pay just £110).
Employees who use the Rodeo for business purposes only, and this includes home to work travel, have no BIK liability whatsoever.
NI Contributions
Class 1A national Insurance Contributions are much lower on an Isuzu LCV compared with a comparable passenger car. If your employee has unrestricted private use of an LCV, in the tax year from April 2011 Class 1A NIC is just £414 (£3,000 x 13.8%).
VAT Allowances
LCV's qualify for a VAT reclaim subject to the business being VAT registered, the vehicle being purchased outright or on a finance purchase plan and the vehicle being used for business purposes. The percentage of VAT that can be reclaimed is dependent upon the extent to which the vehicle is used for business purposes, i.e. if the vehicle is used 100% for business purposes then 100% of the VAT can be reclaimed, if the vehicle is used 80% for business purposes and 20% for private purposes then 80% of the VAT can be reclaimed.
VAT on LCV leasing rentals is also reclaimable, subject to the above.
Vehicle Excise Duty
Vehicle Excise Duty on all Isuzu pick-ups is at a standard rate of £210 pa, irrespective of CO2 emissions.
DISCLAIMER
Tax information is provided as a guide only. The tax allowances detailed are subject to timing differences and the status of your business. You should check with your Accountant or Tax Adviser that you are eligible to take advantage of these allowances. Personal use of these vehicles may give rise to a tax assessment and we recommend you discuss this with your own Accountant or Tax Adviser. Details correct at time of writing. Tax liability can vary according to circumstances. Please contact your local Inland Revenue office for further information. Isuzu UK accepts no responsibility for individuals misinterpreting information provided as a guide only. You can contact The HM Revenue & Taxes Helpline on 0845 300 3939 or visit their web site at www.hmrc.gov.uk
