Drivers can save on car tax with a simple loophole (Image: Getty)
Certain drivers can avoid paying hefty price rises coming in months by taking advantage of a simple loophole, according to experts.
Double cab pick-ups in 2025 as part of a major shake-up.
the amount of benefit-in-kind (BiK) paid by motorists.
Under current rules, all pick-ups are subject to a fixed benefit of just £3,960.
But, the move , with more polluting petrol and diesel models placed in much higher thresholds.
Double cab pick ups will be reclassified from April (Image: Getty)
However, the Government has confirmed that updating the BiK rates for these models will only come into force in April.
Meanwhile, a transition period has been arranged so as not to disadvantage those who have already ordered vehicles.
It means anyone who purchases a double cab pick-up between now and April will not have to pay the higher rate until another four years down the line.
: “The existing capital allowances treatment will apply to those who purchase DCPUs before April 2025. Transitional benefit-in-kind arrangements will apply for employers that have purchased, leased, or ordered a DCPU before April 6, 2025.
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“They will be able to use the previous treatment, until the earlier of disposal, lease expiry, or April 5, 2029.”
It means those quick to act can avoid the hefty rate rise and dodge the major increase set to hit road users next Spring.
Experts at stressed that “careful planning” was necessary to ensure road users remain at the lower rate for as long as possible.
However, acting quickly was vital to ensure fleets and businesses did not face the prospect of a “cliff edge” tax increase.
They commented: “Careful planning will be required to ensure the tax point of the purchase for capital allowances falls before April 2025 – this is usually the date of delivery or, where using finance agreements, the date the asset is brought into use.
“To avoid a cliff edge BiK tax charge for existing fleets, the government has announced that transitional BIK arrangements will apply for employers that have purchased, leased, or ordered a double cab pick-up before 6 April 2025.
“This will allow employers to use the existing BiK treatment for these vehicles, until the earlier of disposal, lease expiry, or 5 April 2029.”