Category Archives: EVs and Automotive News

Employer salary sacrifice schemes boost electric vehicle take-up: 40% employees say their next car will be electric, according to Tusker’s 2024 Survey

Cost-savings top of mind for 62% of drivers who next plan to drive an Electric Vehicle via their employer’s salary sacrifice scheme

Tusker, the UK’s leading salary sacrifice car provider, says its annual Driver Survey shows 62% of employees who plan to get an Electric Vehicle (EV) as their next car said a key incentive is the significant benefits available through a salary sacrifice scheme. In fact, 40% of the survey’s respondents said they plan to get an EV next time they change cars, with just 10% intending to drive a petrol car.

 

The Tusker EV Driver Survey 2024 was carried out in April 2024 with 5,942 UK employees taking part. The respondents were made up of 4,331 employed driving licence holders, 1,316 electric vehicle drivers with a Tusker scheme and 295 petrol vehicle drivers with a Tusker scheme.

 

Kit Wisdom, Managing Director, Tusker, said: “It’s undeniable that company car and salary sacrifice schemes are playing a major part in supporting EV take up. Industry data shows that recent growth in EV market share could not have been achieved without the significant benefits linked to salary sacrifice. These results underline that incentives have played a critical role in supporting the uptake of EVs to date – and it’s vital that the Government ensures that the incentives remain stable and strong enough to encourage more consumers and businesses to switch.

“The research in our report bears this out – drivers say the schemes’ tax advantages are one of the main reasons they plan to go electric or have already done so. We’ve also found that one of the biggest barriers to adoption of EVs is the perceived high purchase cost. This does not concern employees who choose an EV through a workplace salary sacrifice scheme as they aren’t required to pay for their car upfront.”

 

The data, published earlier this year by the British Vehicle Rental and Leasing Association (BVRLA), found that take up of salary sacrifice car schemes rose by 47% in the final three months of 2023 compared with the same period in 2022, with 84% of employees opting for an EV. However, when motorists don’t have access to the tax advantages of a salary sacrifice scheme, the picture is different. The BVRLA found that 66% of private contract hire agreements in the same period of last year were for petrol vehicles, with EVs representing only 16%.

 

Wisdom continued: “Beyond this, however, EV drivers are incredibly happy with their vehicle choices. This year’s survey showed the high – and rising higher – levels of satisfaction EV drivers have about their cars – just 3.5% of EV driver respondents said they’d go back to a petrol or diesel car.”

 

When it comes to customer views on their EV’s, 93% of Tusker drivers said they are either satisfied or very satisfied with their car, while 96% said their cars are reliable or very reliable.

 

The survey also found that alongside tax savings benefits, employees said that cheaper running costs are a key consideration in choosing an EV, with 60% saying this. Fifty two percent also said that environmental benefits are a key reason to switch from a petrol or diesel car.

Of the drivers who don’t have a car on the Tusker scheme and don’t currently own an EV, 69% said they plan to switch in the next four years.

Non-EV drivers still have concerns, however. The most common is the range of electric cars – how far a car can travel on a single charge – as well as the public charging infrastructure and initial vehicle cost. However, 86% of EV drivers said their cars range is sufficient for everyday use, and 78% only need to use the public charging network once a month or less. Indeed, data shows that almost 6000 new public charge points have been installed in the UK in the first three months of 2024, increasing to 60,000 across Britain to date – 12,000 of which are rapid or ultra rapid chargers. Three-hundred thousand public chargers are due to be implemented by 2030.

Tusker’s Car Benefit Scheme gives employees access to affordable, fully maintained and insured cars for a fixed monthly amount delivered through a salary sacrifice employee benefit arrangement.

About Tusker

Tusker is the UK’s leader in salary sacrifice cars. Part of Lloyds Banking Group, it has more than 15 years’ experience in offering an affordable way for employees to drive a new fully insured and maintained car. Its scheme, which is offered to over 1.8m UK employees, offers a range of options, from pure electric cars to hybrids and even traditional petrol and diesel vehicles. It provides a tailored scheme for organisations’ individual needs.

Marketcheck reports EV record used values as total stock surpasses £1 Billion in August

Marketcheck, the leading source of data on the UK used car industry, has reported that the total value of all used electric vehicles on the UK used market surpassed £1 billion on multiple occasions in August.

With the count of vehicles standing at 32,331 for the UK market on August 11th, with an average price of £31,524. On four other individual dates, the total surpassed £1 billion – the 3rd, 7th, 9th and 10th.

Alastair Campbell, Marketcheck UK, commented:

“The used UK electric vehicle market is now at almost 8% of all used vehicles for sale, driven by supply increases as vehicles come off fleet and company car schemes. Days on market remain consistent showing that demand is increasing as supply grows. Certainly the fall in pricing will be helping keep demand high as some quality used EVs like the Tesla Model 3 drop under £18,000.

It is now only a matter of time before EVs are more than 10% of the whole used UK car market – only a few years ago, that was entirely unimaginable.

We will continue to track the development of the used EV market, with Marketcheck’s unique real-time analysis. It is set to tell a fascinating story.”

About Marketcheck UK:

By tracking data on 650,000 daily car adverts from 11,000 dealers in 14,000 locations, Marketcheck captures an incredible amount of data on the UK used car sector.

Data is matched against the DVLA, SMMT and other sources for normalisation and accuracy.

This includes historical data back to January 2021, broken down by model, price, mileage, days on market, location, website, dealer brand, and so much more.

To learn more, visit https://marketcheck.uk/

Used EVs are now cheaper than petrol or diesel equivalents, say researchers

HPI data shows that average retail prices of EVs are cheaper than petrol and diesel vehicles by around 8.5% at three years and rising to 14% at four years.

With over 1.1 million battery electric cars on UK roads, HPI, a vehicle history check and valuation specialist, is offering motorists a handy new guide to buying their first EV.

 

New EVs are commonly more expensive than the closest petrol and diesel equivalents, however, used EV values have fallen sharply in the past two years to provide motorists with a bargain.

A used EV represents a big saving over the new price. On average, values of used EVs for cars at the same age and mileage point have halved in value since September 2022. For models such as the Jaguar i-Pace, Mercedes EQC and Tesla Model X, this can equate to well over £20,000 less than in the summer of 2022, and for cars like the Porsche Taycan, up to £40,000 less, making previously unobtainable cars a real option for more consumers.

Chris Plumb, EV specialist at HPI, said: “The growing availability of second-hand electric models is driving demand as motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices. However, switching from traditional petrol and diesel motoring to electric isn’t a like-for-like swap, and certain factors should be taken into consideration before going ahead.

“The fundamental consideration is can the vehicle be charged. If charging the car at home or nearby then EV ownership is possible. Homeowners with off-street parking will almost certainly fall into this category because there is nothing to prevent them from installing a domestic charge point and topping up the battery overnight. It’s also the cheapest way to charge an EV.

“If on-street, public charge points are close by or at work, then there is still every chance an EV will suit. If home, street or work-based charging are not readily available, then an EV may not be a realistic choice just yet.”

Chris Plumb, EV Specialist, HPI

 

Other factors to consider when buying a used EV include:

  • Charger costs – installing a wallbox is worth adding to the overall budget for the car. It costs around £800-£1,000 for a home charge point, although energy suppliers are increasingly offering EV-specific tariffs, which sometimes include a home charger bundled with the package, avoiding an up-front payment.
  • Salary sacrifice schemes – where employees give up a portion of their earnings in exchange for a new or a used car, these schemes sometimes include a wallbox as an added incentive to switch to a zero-emissions car
  • Vehicle history – when buying a used EV, it’s essential to understand its history. The HPI Check Report will flag any worrying information held against the vehicle by finance and insurance companies, the DVLA, the Police and other industry bodies. A comprehensive HPI Check is the most important check before buying a used car and is the first line of defence against vehicle fraud.

 

In May 2024, 17.6% of all new car registrations were electric cars, with 26,031 new electric cars registered. Sales of used electric cars were 71% higher in the first quarter of 2024 than in the same period last year, and sales of used hybrids are also increasing significantly. More than 41,500 pure electric cars were sold on the used market in the first quarter of this year alone,

 

Added Chris Plumb: “For drivers considering the switch to electric with a used EV, the HPI Check report is crucial. It arms motorists with vital information about the car they want to buy, not only offering protection from motoring scams and fraud but also helping to understand the vehicle’s running costs. The Total Cost of Ownership (TCO) calculator considers all costs and outlines how much to expect to spend over the next three years of ownership. Using cutting-edge technology to ensure accurate and up-to-date vehicle information,  it is an invaluable tool that also breaks down what the costs are for and when they need paying.”

 

With lots of often confusing and conflicting information already in circulation about EVs, HPI’s guide simplifies everything first-timers need to know and how to approach the buying process.

Part of Solera Holdings Inc, which provides risk management and asset protection software and services to the global automotive industry, HPI first pioneered the vehicle check back in 1938, offering valuable protection to millions of UK car buyers from fraud.

 

Chris Plumb concluded: “An EV provides a reliable and enjoyable motoring experience that provides cost-effective ownership. Drivers looking to begin their EV journey with a used model should start with a HPI Check to ensure they are fully equipped with all the information they need.”

 

It is recommended that an HPI Check is taken before buying a used car.  HPI Checks reveal some shocking statistics that can affect the value of a car, including 2,205 cars being identified as write-offs and 1 in 3 cars having a hidden history or still having outstanding finance.

 

 

 

Industry demand for used-hybrid vehicles on the rise, amidst continued uncertainty around EV values and charging infrastructure

Motorway’s Inside Track, a report analysing sold prices from the used-car marketplace, shows hybrid cars selling for 2.85% more in Q2, in line with consumer desire to invest in lower emission vehicles, whilst uncertainty around EVs remains.

 

London, Wednesday 31st July 2024Motorway, the UK’s fastest growing used-car marketplace has today launched Inside Track, providing insight into used-car sold prices from its online marketplace. The data found that overall demand for used-cars remained largely stable in Q2, with average sold prices rising 0.4%.

However, hybrid and EV sale prices experienced contrasting changes, with EV sale prices dropping by -8.08% and hybrid sale prices increasing by 2.85%. This shows that there is industry recognition of the consumer desire for lower emission used-cars, but prices are being impacted by supply changes as well as general uncertainty about fully electric.

The list of top 10 most frequently sold used-cars on Motorway in Q2 is still dominated by petrol and diesel vehicles, with certain models seeing a notable increase in sold prices on the platform. MINI Coopers remain in demand as the most frequently sold car in Q2, with average sold prices rising 3.69% QoQ. Average sold prices of Volkswagen Golf and Ford Fiesta are also on the rise, with these models selling for 3.87% and 4.65% more in Q2, respectively.

 

Mismatch in demand for used EVs and reality

Consumer research by Motorway shows that 8-in-10 Brits (82%) are willing to pay a premium for a used-EV, with a third (32%) actively considering purchasing.

Whilst used EV sold prices dropping by 8.08% in Q2 starts to go some way to bridging the affordability gap between used ICE and EVs, it’s also a significant indication of EV uncertainty in the industry, amidst confusion around the government’s commitments and lingering concerns about charging infrastructure and battery health. The increased demand for hybrid vehicles – reflected in the 2.85% increase in average sale price – reflects trade and consumer desire for a more certain sustainable motoring option.

 

Fuel type Average sale price Average sale price +/- QoQ
Petrol £15,002.00 +0.52%
Diesel £19,200.50 -0.04%
Hybrid £22,150.00 +2.85%
Electric £18,577.00 -8.08%

 

Brits call on the new government to invest in EV infrastructure

Consumer perception of the affordability of used electric vehicles is positive, with 4-in-10 (41%) citing general affordability,  including running costs, as a reason why they’re seriously considering purchasing. Additionally, consumers (35%) referenced that the lower prices for used EVs, compared to new, is another reason why electric vehicles are a serious consideration for them. Sustainability (29%) rounded out UK consumers’ top three reasons for considering a used EV, showing this remains high on the public’s agenda despite continued cost-of-living pressures.

However, while consumer demand and sentiment around affordability is heading in a positive direction, factors mirroring the House of Lords Environment and Climate Change Committee’s 2024 inquiry into EV strategy were cited as key concerns about making the switch.

 

Concerns about battery health (39%) and ‘range anxiety’ (33%) topped the list among consumers, as well as charging speeds (29%) and local areas lacking in sufficient charging infrastructure (18%). One-in-five potential buyers (20%) are also concerned about used EV’s depreciating in value,  as well as whether local garages have the skillset to maintain an electric vehicle (17%).

Despite consumers and the industry calling on the government to support the switch to EVs in order to meet sustainability commitments, EVs were unmentioned in the recent King’s Speech. A third (32%) of Brits want to see the new administration invest more money into EV infrastructure like charging points, while grants for buyers (27%) and tax-breaks for manufacturers (20%) that make EVs more affordable were also high on the public’s wishlist.

 

James Wilson, Chief Operating Officer at Motorway, said: “Motorway’s research reveals a contrast between Brits wanting to invest in more sustainable second-hand vehicles, and the reality of industry sentiment around fully electric vehicles. EVs are selling for less on our platform than in previous quarters, but we’re seeing an increase in demand for hybrid vehicles from dealers. 

“Although it’s positive that we’re heading in the right direction affordability-wise, if the UK stands a chance of hitting its sustainability goals, there needs to be much more of a focus on building and maintaining an EV infrastructure that reassures buyers, both trade and consumer. The new government has an integral role to play in supporting the transition to used EVs, and we’d like to see this higher up on their agenda. Our research shows that the intent is there from consumers and they are willing to pay a premium to switch to more sustainable motoring. The missing puzzle piece is for the EV infrastructure in this country to be more supportive of this switch.”

 

Inseego Launches EV Telematics Reporting To Take The Pain Out Of Operating An Electric Fleet

Inseego has launched an EV reporting package to help fleets tackle some of the most common and difficult challenges they face when operating electric vehicles. The company’s latest EV telematics capabilities are designed to support the smooth transition to electric vehicles, while providing the added insight needed to achieve high levels of operational efficiency, productivity and performance.

 

“Our aim is to remove some of the pain points that fleets encounter when switching to and running electric vehicles,” explains Steve Thomas, Managing Director of Inseego UK Ltd. “By speaking with existing customers, we were able to identify recurring operational issues that were resulting in added cost, disruption and delays. What became clear was the need for a more comprehensive EV reporting package based on real-world scenarios and experience.”

 

The advanced EV telematics functionality comprises five bespoke reports – covering status, efficiency, charging, trip replay and operational performance – and a live view for real-time visibility. It is designed to go above and beyond standard EV tracking to gain a detailed understanding of an electric vehicle fleet, while flagging issues and potential risk. For example, the operational report creates a picture of lost productivity or added costs due to uncoordinated and inefficient charging schedules.

 

“Fleets can demonstrate their green credentials and meet future sustainability targets by using the information provided by our EV reporting package to best manage the change process, target savings, and deliver business value. It is all about gaining that added layer of insight needed to make the day-to-day operation of electric vehicles smooth and trouble-free,” concludes Thomas.

Zeromission Secures £2.3M ($3M) Investment to Accelerate Electric Fleets

ZeroMission, the leading provider of an EV fleet management platform for commercial electric vehicles (EV’s), has today announced new investment to continue its growth and expansion strategy. The round was co-led by European venture capital companies Delta Partners and Greencode with participation from Vireo Ventures and leading industry angel investors.

Founded in 2022 by Leah O’Dwyer and Kevin Christopher who bring a combined 30 years’ experience in the EV space with global companies including ChargePoint, Siemens & ABM, ZeroMission’s vision is to accelerate zero-emission vehicle adoption with smart and practical software solutions.

Fleet decarbonisation is at the core of emission reduction strategies, and commercial fleet operators are facing regulatory and commercial pressure to transition quickly to EV’s. Since its inception ZeroMission has been at the forefront of fleet electrification through development of a fully integrated software platform, designed to ensure commercial and industrial fleets can efficiently deploy and manage EV’s at scale.

The company is already providing transit bus operators in California and leading US technology companies operating electric vehicles for employee commuter services with the tools they need. The platform provides single sign-on, real-time, on-the-ground visibility into vehicles, charging stations and scheduling systems, optimises energy usage and costs, and streamlines daily operations for mission success using Electric Vehicles. With this new investment, the company has plans to enhance product development as well as expand its commercial reach.

 

On announcing the investment, Founder and CEO Leah O’Dwyer said: “Our fleet operator clients use ZeroMission as a single platform wherever they are on the journey to transition to electric vehicles. While of the majority of existing fleet operators plan to continue electrifying their fleets, we know that more than 80% are curtailed by an absence of integrated systems to manage daily operations and smart tools to plan and transition their fleets. These missing parts are what we provide for our customers and today’s announcement will enable us to expand our client base significantly.”

 

Terhi Vapola, Managing Partner and Co-Founder of Greencode Ventures said: “We are impressed by the deep industry expertise of the team and the innovative approach of ZeroMission. This enables the company to offer an outstanding end-to-end solution in heavy vehicle fleet management, encompassing planning, operation, and reporting, with seamless integration to other fleet stakeholders.”

 

Amy Neale, General Partner at Delta Partners said: “The ZeroMission team are building the most comprehensive and integrated EV operating system for commercial fleets, based on true industry insights and access. At Delta, we’re thrilled to be going on this journey with them, tackling an immediate and urgent industry need.”

 

About ZeroMission

ZeroMission’s senior team has been in a wide range of roles, always at the forefront of the electric vehicle industry. Today, with over 15 years of real-world electric vehicle experience, we work closely with fleet customers and industry stakeholders to deliver projects for all vehicle types, operational scenarios and charging technologies, including AC, distributed DC, Pantograph, and Megawatt charging. Our vision is to accelerate the adoption of zero emission vehicles through smart and practical software solutions, ensuring successful day-to-day zero emission fleet operations. Our experienced team has pioneered innovative technology, projects, and business models from concept to deployment for all Electric Vehicles, including passenger cars and heavy-duty trucks and buses. Our understanding of the industry is unparalleled.

New Market Analysis Reveals Significant Opportunities for Used EV Buyers and Dealers

Marketcheck has analysed the current state of the used EV car market from January 2024 to May 2024, revealing significant trends and opportunities for both buyers and dealers.

The stock of used EVs available has grown from 31,297 in January to 37,334 in May. Monthly sales have also risen, from 10,135 to 12,889 this year, indicating sustained interest in electric vehicles which could be because prices are soft despite no tax breaks to private buyers, with prices dropping by over £1,600.

The average sale price in January was £26,535, which decreased to £24,857 by May, a reduction of £1,678

During the same period, the average stock days on market have seen a slight adjustment, reflecting the market’s response to changing prices. The average days on market decreased from 126.46 days in January to 97.65 in May.

Alastair Campbell, Marketcheck UK said: “Our analysis underscores the fact that while days on market are slower than ICE and Hybrid they are consistently dropping as more used EVs hit the market at lower average prices. The increased availability and more competitive pricing of used EVs offer great opportunities for buyers looking to make the switch to electric. Our research highlights that this inflexion point is good for buyers which is an opportunity for dealers in the used EV market.”

Sales of electric cars rising in areas affected by ULEZ expansion

Data produced by Marketcheck, the most significant source of data on the UK used car market, show that within the postcodes affected by the expansion of ULEZ, sales of used electric cars have increased.

In the three months prior to the expansion of ULEZ (1st June 2023- 30th August 2023), there were 941 electric cars sold compared to 1013 in the following three months (31st August 2023- 29th November 2023). This is an almost 8% increase (7.65%).

EV Sales within postcodes affected by ULEZ expansion:

Total Sales (01/06/23-30/08/23) Total Sales (31/08/2023-29/11/23) % increase
EV 941 1013 7.65%
Hybrid 3164 3132 -1.01%

 

Sales of hybrid cars however remained stable, showing a small decline. Using the same time periods before and after expansion, there were a total of 3164 and 3132 respectively. Whilst stable, this represents a slight 1% decline in total vehicles sold.

Alastair Campbell, Marketcheck UK, commented: “These figures show that ULEZ is having a demonstrable influence on the purchase decisions made by people living in postcodes affected by the expansion of the policy.

Hybrid cars clearly remain the most popular choice, but the data point to the increasing popularity of fully electric vehicles.”

 

About Marketcheck UK:

By tracking data on 650,000 daily car adverts from 11,000 dealers in 14,000 locations, Marketcheck captures an incredible amount of data on the UK used car sector.

Data is matched against the DVLA, SMMT and other sources for normalisation and accuracy.

This includes historical data back to January 2021, broken down by model, price, mileage, days on market, location, website, dealer brand, and so much more.

To learn more, visit https://marketcheck.uk/

 

Bramble Energy achieves milestone in hydrogen fuel cell production, advancing UK’s electrified automotive future

Cleantech and Hydrogen fuel cell tech specialist completes £1.8 million SuRV project, accelerating the journey to a net zero future in transportation.   

London, UK. 9 MAY 2024: Cleantech and Hydrogen fuel cell technology specialist Bramble Energy has successfully completed a project aimed at accelerating the transition to an electrified automotive industry in the UK, funded by the Advanced Propulsion Centre (APC)’s Scale-up Readiness Validation (SuRV) programme.

As part of the Automotive Transformation Fund – a programme created to support large-scale industrialisation – Bramble Energy was awarded £1.8 million in September 2022 to develop an optimised fuel cell stack assembly with the capacity to produce up to 2,000 50 kW stacks/year. This has been accomplished, in less than two years, at the firm’s state of the art HQ and Hydrogen Innovation Hub in Crawley.

The completion of the SuRV project has seen Bramble Energy simplify the fuel cell stack assembly process through the design of its already trademarked Printed Circuit Board Fuel Cell (PCBFC™), which includes integrated membrane electrode assembly into unitised PCB modules (cells).

Furthermore, the process has seen the company prove its low cost production roadmap to $100/kW at 2,000 x 50 kW stacks/year (100 MW/year)*.

Bolstering Bramble Energy’s momentum in driving change in the transportation sector, the business also secured funding last year to provide first-of-its-kind fuel cell technology for a new hydrogen-powered double-deck bus. The project, part of the Hydrogen Electric Integrated Drivetrain Initiative (HEIDI), involves partners including Equipmake, Aeristech, and the University of Bath, and is supported by £6.3 million from the APC, matched by industry contributions to total £12.7 million.

 

Dr Tom Mason, CEO Bramble Energy, comments on the firm’s commitments towards a net zero future in transportation: “In our efforts to help both the automotive and public transport industry find a clean, reliable and cost-effective way of powering vehicles, both the SuRV and HEIDI projects have helped us deliver internal efficiency development, refine our build process and create more flexibility with our design. We already have unique production USPs with our fuel cell modules and the PCB industry, so the SuRV project was the perfect way to make advancements internally with delivering the fastest and most efficient build process.

“The UK Government’s aim to halt new petrol and diesel car sales by 2035 influences Bramble Energy’s plans. However, it’s just part of a larger vision. Our focus extends beyond this goal as we work towards creating real-world, commercially viable solutions for the wider transportation sector: a key milestone in this journey is HEIDI, our hydrogen-powered double-deck bus demonstrator.”

 

The significant reduction in the cost of automotive fuel cells – by 70% since 2008 – mirrors the strides made by pioneering technology companies such as Bramble Energy and the wider industry towards more efficient and scalable production processes. This evolution from capital-intensive and slow production cycles to more economical and faster production methods not only enhances the viability of fuel cell technology, but also positions the UK as a potential leader in this field. It’s a shift that promises to bolster the UK’s industrial landscape, while also contributing to a broader global shift towards sustainable energy solutions.

 

APC’s Automotive Transformation Director, Julian Hetherington added: “The successful completion of this APC Scale-up Readiness Validation (SuRV) project by Bramble Energy reinforces confidence in large-scale manufacturing investment to build electrified supply chains in the UK. Our aim is to support innovative businesses like Bramble Energy that have the expertise to accelerate change in the automotive sector as it transitions to a net zero future. By advancing fuel cell technology, it brings a viable net-zero transport solution which can scale quickly and be delivered at lower cost.”

HMRC updates Guidance on Double Cab Pick-Ups, Confirming They Will Continue to be Treated as Commercial Vehicles

Last month, HMRC updated its guidance on the tax treatment of Double Cab Pick Ups (DCPUs), following a 2020 Court of Appeal judgment.

The guidance had initially confirmed that, from 1 July 2024, DCPUs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes, however this guidance has now been changed, in a decision that has been welcomed by motoring and agriculture leaders.

HMRC said in a statement:

“The government has listened carefully to views from farmers and the motoring industry on the potential impacts of the change in tax-treatment. The government has acknowledged that the 2020 court decision and resultant guidance update could have an impact on businesses and individuals in a way that is not consistent with the government’s wider aims to support businesses, including vital motoring and farming industries.

“HMRC have today announced that its existing guidance will be withdrawn, meaning that DCPUs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from its historic tax treatment.

“This move is resultant of the government making clear that it will be legislating to ensure that DCPU vehicles continue to be treated as goods vehicles for tax purposes.

“The government will consult on the draft legislation to ensure that it achieves that outcome before introducing it in the next available Finance Bill.

Nigel Huddleston, Financial Secretary to the Treasury, said:

“We will change the law at the next available Finance Bill in order to avoid tax outcomes that could inadvertently harm farmers, van drivers and the UK’s economy.”

Further information

  • The tax on the benefit-in-kind will now not increase when employers provide these vehicles to their employees; and the capital allowances available in the first year of use will now not be reduced when a business purchases this vehicle for use in their trade.
  • This will ensure a continued generous and consistent treatment of DCPUs for capital allowances, benefit in kind, and VAT purposes, maintaining simplicity in the tax system.
  • HMRC will withdraw its updated guidance during the afternoon of Monday 19 February 2024.
  • The Court of Appeal ruled that most multi-purpose vehicles, such as DCPUs, are cars in Payne & Ors (Coca-Cola) v R & C Commrs (2020) (BTC19).
  • Arrangements that HMRC announced on 12 February 2024 to help DCPU owners adapt to the updated guidance are now redundant because the tax-treatment is not changing.
  • This update is only with reference to DCPUs with a payload of one tonne or more. DCPUs with a payload of less than one tonne continue to be treated as cars.

Commercial Vehicle Expert Oliver Lewis, Director, Hawkstone Commercials welcomed the news, saying:

“I am delighted to hear that double cabs with a payload of more than one tonne will continue to be classed as commercial vehicles – because they are commercial vehicles.  This is a much welcome common sense decision.  We have more than 60 brand new double cabs available for fast delivery and our team will be happy to arrange the best vehicle to meet your needs.”