Businesses could ditch these cars in weeks as £15,000 car tax bill threat looms
Many companies could decide to get rid of their petrol and diesel double cab pick-up models due to one important car tax rule change.
Businesses could reconsider using certain petrol or diesel vehicles with eye-watering £15,000 bills possibly just weeks away.
Motoring experts at Bumper have suggested firms could "rethink their pickup vehicle fleets" ahead of major car tax updates coming into effect in April.
Instead, companies could turn their heads towards securing vans or electric models in a desperate bid to avoid any fees.
Double cab pick-up models will be reclassified from light commercial vehicles to cars for tax purposes from April 6.
The changes will see motorists pay higher benefit-in tax, which could be a major blow to cash-strapped firms.
Bumper previously admitted some individuals could end up paying £15,000 per year to use the roads once the rules are updated.
The experts have now stressed car ownership could be at risk with many likely to look towards alternative vehicles.
Bumper said: "Aside from higher taxes, what do these changes mean for the industry?
"The new regulations may lead businesses in industries like construction and farming to rethink their pickup vehicle fleets.
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"While reliable, double-cab pickups will face higher BiK taxes, which will lead to increased costs for employers due to added National Insurance contributions.
"Many businesses might switch to traditional vans to reduce the tax burden, which still benefits from lower BiK rates. We might also see a switch to electric vehicles (EVs), which offer reduced taxes thanks to their lower emissions."
As well as paying higher BiK charges, the move is also likely to add to employers' National Insurance contributions in an extra blow.
Bumper has stressed the move could become a "significant hit for tradespeople" who have relied on these vehicles as part of their work.
Under current rules, double cab pick-up models over one tonne only have to pay £3,960 in benefit-in-kind fees.
However, the update means road users will pay benefit-in-kind fees based on emissions with higher polluting vehicles more affected.
Analysis from Bumper has stressed company car owners which fall into the highest tax band may pay as much as £15,000, more than three times the current rate.
