HMRC announced last week that dual-cab lorries with a payload of one tonne or more would cease to be commercial vehicles and would instead be taxed as cars.
The new guidelines suggested that while the status of single-cab trucks would remain unchanged, double-cab trucks would lose their commercial status.
This raised potential cost implications for many rural users of such vehicles, from large agricultural businesses with multiple vehicles to small businesses operating a single vehicle, such as farriers.
The NFU argued that this change would disproportionately and unfairly affect rural businesses, and could lead to many DCPU users having to switch to individual taxis and then purchase a second vehicle for people movement, negating any intended CO2 gains. in the updated guide.
Essential vehicles for companies.
In an updated statement on 19 February, HMRC said: โThe government has listened carefully to the views of farmers and the motor industry on the potential impacts of the change in tax treatment.
"The government has recognized that updating the guidance could impact businesses and individuals in a way that is inconsistent with the government's wider objectives of supporting businesses, including the vital automotive and agricultural industries."
An NFU spokesperson said: โSometimes politicians and officials do not get the credit they deserve for listening to coherent arguments presented in good faith and with solid evidence. โIn this case, that is exactly what happened and we are delighted that the government has done the right thing by farmers.โ
