Our CarLease / VanLease team UK had the pleasure of reviewing this truck at a recent expo (the St Helens Chamber Business Fair) – the Toyota HiLux. A big thank you to the Johnsons Toyota (Liverpool) representative for giving us such a great demo of the vehicle!
While the pickup/4×4 truck is a relatively small market compared to cars and vans, this has now become an exciting part of the leasing industry. While available as single cabs, half cabs and double cabs, many vehicles will be double-cab “lifestyle” models.
Essentially these are hybrid commercial vehicle functionality coupled with the comforts of a car.
The key point to note with any truck is that It must have a payload in excess of 1000kg in order to be classified as a van for VAT and BiK purposes. This is a key facet to note, as a pickup is generally purchased or leased in order to obtain a number of tax benefits (and fulfil specific objectives).
With a company car, an individual will pay company car tax (BiK) which is based around the car’s value (P11d), the CO2 the car emits (shown as g/km) and the individual’s own income tax level (20, 40, 50% …) Commercial vehicles are treated very differently to a car. With a purchase on a commercial vehicle you can claim 100% write down in year one via the Annual Investment Allowance (subject to a limit of £200,000). With a rental style product (contract hire and finance lease), you can claim 100% of the rentals against tax for the duration of the agreement so long as there is no private use. In instances of private use you need to accurately claim the element for business use and the elements for private use. In addition, for those companies who are VAT registered, they can claim back 100% for the VAT providing:
1. They are Vat registered;
2. They are not on a Flat Rate VAT Scheme;
3. There is no private use; and
4. There is no “exempt turnover”
As per above, if you are using your commercial vehicle privately, you should only reclaim that VAT for business use i.e. if 90% of the time it is used for business, that element of VAT can be reclaimed. In contrast, unless a car is used as part of a “pool”, then only 50% of the VAT on the finance rentals can be reclaimed (please note 100% of VAT on any maintenance rentals can be reclaimed).
Additionally, companies will need to consider the CO2 on a car before ascertaining what percentage of the finance rentals can be offset against corporation tax.
So long as a pickup qualifies as a commercial vehicle, it can clearly offer a VAT registered business, and the driver, a great solution. Manufacturers are clearly aware of this, as they continue to invest into their ranges, in particular with high-specification models. Leather, reversing cameras, heated seats, climate control, parking sensors and active cruise control are no longer the reserve of cars; trucks too can feature these exciting features. In addition, automotive detailers like DeRanged are creating some extreme versions.
Added to that is the ability to include practical features like a towbar, load liner and a canopy. So you can create an all-round workhorse.
In terms of the pickup shown here, the Toyota HILUX DIESEL Invincible X D/Cab Pick Up 2.4 D-4D Auto, this is based on the following specification:
· Crimson spark red Metallic Paint
· Leather – Black/Professional
· 18″ Style alloy wheels
As standard the vehicle includes electric front windows, green laminated glass, brake assist, downhill assist control, hill start assist, load sensing system, road sign assist, traction control, lane departure warning, pre-collision system, 4.2” display, cruise control, heated and electric door mirrors, DAB radio, Bluetooth, rear view camera, 18” alloys wheels, parking pack, leather upholstery, air conditioning, 220V power socket, fog lights and follow me home lights. In terms of additional features, consider – towbar with 13pin electrics, a load liner and the entertainment system.
In terms of the technical info, the vehicle has a list price of £30,261.67 and CO2 of 189g/km. The 2393CC 6 speed engine delivers 36.2 combined MPG, 150ps and 0-62 times of 12.3 seconds.
So which pick-up truck would you like to drive home in? Comment below…
Find the best commercial and business van and Pick-up leasing deals on our sister website VanLease UK