Construction sector set to be stung by ‘brutal’ tax hike buried in Budget
Posted: Tuesday, November 5th, 2024
Britain's builders, electricians, and plumbers are set to be hit hard by a stealth tax bombshell buried in the Budget, The Sun reported. A new rule will soon classify double-cab pickups - the workhorses of tradespeople - as company cars for tax purposes. This change, effective April 2025, could increase the tax burden on a typical double-cab pickup by as much as 211 per cent, according to analysis by the Countryside Alliance. This is because, for capital allowances, benefits in kind (BIK) and some deductions from business profits, these vehicles will no longer be treated as essential tools of the trade. The campaigning group says a typical Nissan Navara Tekna, priced at £33,265 and emitting 167g/km of CO2, will see its BIK rise from £3,960 to £12,308. And the BIK on private fuel benefits will also soar from £757 to £10,286, leading to even higher costs for tradies. Self-employed tradespeople will face the biggest blow, as they can only deduct 6% of their vehicle's cost in the first year, slashing potential tax savings from over £9,600 to just £578.84.
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