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UK & Ireland Ineos Grenadier and UK HMRC BIK classifications for 2 and 5 seat Commercials

Jeremy996

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CASE REFERENCE:



Hi

Thank you very much for contacting INEOS Automotive.

I can confirm that the 5 seat Station Wagon (Non Belstaff editions) is a commercial vehicle and qualifies for claiming back VAT and BIK.
I would not build a case of misrepresentation on that. There are use cases where that is both true and demonstrable.

For any trip to the High Court, you need to think of £100,000 as burn money.
 

Jeremy996

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In the UK we cannot see how the double cab pickup will be much difference, for starters its longer and hardly going to shave enough weigh off up top to bring it below the required pathetic threshold.
There is more than one route to the HMRC definition of commercial, increasing the payload to in excess of 1 tonne would do it, but then the vehicle would not be a "DVLA" PLG and would fall into a higher weight class, 3.5-7.5 tonnes, governed by Maximum Authorised Mass, (MAM).
 
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Basically the issue is here - https://www.gov.uk/government/publications/car-derived-vans-and-dual-purpose-vehicles

I've spoken to the CIOT (chartered institute of taxation) who are in charge of keeping the HMRC on their toes (i've put the whole email at the bottom). They've said that the list of car-derived vans (CDVs from now on 🙂) hasn't been updated since 2015 and they are currently trying to decide whether to have a list of every CDV or whether they have a set list of specifications that every CDV has to adhere to.

Although he did end the email strangely - "In the meantime, unfortunately, taxpayers and their advisers are left with having to decide for themselves how the legislative definitions apply to a vehicle." - which to me says I can say that a Grenadier is a commercial vehicle but if the HMRC turn around and say no then I'll have a tonne of fines plus £19k BIK! Not a risk I want to take!!

So for now, I've cancelled by Grenadier. Which is a HUGE shame because it's built and was waiting in the factory for checks then was on it's way to me :(

Hope this helps someone.


"Thank you for your email.

We welcome comments and queries that bring to light anomalies in or problems with tax law or administration.

We can advise that we are in ongoing discussions with HMRC about keeping their guidance up to date. While we are unable to advise why the list of car derived vans and combi vans hasn’t been updated by HMRC since it was first published in 2015, we can advise that there have been discussions with HMRC about clarifying how to distinguish between a ‘van’ and a ‘car’ for VAT and benefit-in-kind purposes. These discussions include whether a definitive list can be provided given the vast number of variations possible to base models (let alone modifications to those vehicles) and, if one can, who decides (manufacturer or HMRC) the categorisation. These discussions continue and we expect will lead to better and updated guidance. In the meantime, unfortunately, taxpayers and their advisers are left with having to decide for themselves how the legislative definitions apply to a vehicle.

Please note that the Institute does not currently have the resources to provide a technical advisory service. In addition, providing advice would place us in unfair competition with members whose business is to provide such advice.
If you wish to discuss this matter with a member with specialist expertise, you can search via our online directory which is available on our website https://www.tax.org.uk/ (click on ‘Find a CTA: Online Directory’). You will no doubt wish to discuss fees with the member you select during your first contact.

In providing any response that is intended for general guidance only, no responsibility can be accepted by the Chartered Institute of Taxation for loss occasioned to you or any other person acting or refraining from action as a result of any material in our response. Our full policy on providing replies to queries is set out at https://www.tax.org.uk/contact-the-technical-team.

We hope that helps and we are sorry that we are unable to be of more assistance."
 
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Max

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Basically the issue is here - https://www.gov.uk/government/publications/car-derived-vans-and-dual-purpose-vehicles

I've spoken to the CIOT (chartered institute of taxation) who are in charge of keeping the HMRC on their toes (i've put the whole email at the bottom). They've said that the list of car-derived vans (CDVs from now on 🙂) hasn't been updated since 2015 and they are currently trying to decide whether to have a list of every CDV or whether they have a set list of specifications that every CDV has to adhere to.

Although he did end the email strangely - "In the meantime, unfortunately, taxpayers and their advisers are left with having to decide for themselves how the legislative definitions apply to a vehicle." - which to me says I can say that a Grenadier is a commercial vehicle but if the HMRC turn around and say no then I'll have a tonne of fines plus £19k BIK! Not a risk I want to take!!

So for now, I've cancelled by Grenadier. Which is a HUGE shame because it's built and was waiting in the factory for checks then was on it's way to me :(

Hope this helps someone.


"Thank you for your email.

We welcome comments and queries that bring to light anomalies in or problems with tax law or administration.

We can advise that we are in ongoing discussions with HMRC about keeping their guidance up to date. While we are unable to advise why the list of car derived vans and combi vans hasn’t been updated by HMRC since it was first published in 2015, we can advise that there have been discussions with HMRC about clarifying how to distinguish between a ‘van’ and a ‘car’ for VAT and benefit-in-kind purposes. These discussions include whether a definitive list can be provided given the vast number of variations possible to base models (let alone modifications to those vehicles) and, if one can, who decides (manufacturer or HMRC) the categorisation. These discussions continue and we expect will lead to better and updated guidance. In the meantime, unfortunately, taxpayers and their advisers are left with having to decide for themselves how the legislative definitions apply to a vehicle.

Please note that the Institute does not currently have the resources to provide a technical advisory service. In addition, providing advice would place us in unfair competition with members whose business is to provide such advice.
If you wish to discuss this matter with a member with specialist expertise, you can search via our online directory which is available on our website https://www.tax.org.uk/ (click on ‘Find a CTA: Online Directory’). You will no doubt wish to discuss fees with the member you select during your first contact.

In providing any response that is intended for general guidance only, no responsibility can be accepted by the Chartered Institute of Taxation for loss occasioned to you or any other person acting or refraining from action as a result of any material in our response. Our full policy on providing replies to queries is set out at https://www.tax.org.uk/contact-the-technical-team.

We hope that helps and we are sorry that we are unable to be of more assistance."
What is your alternative vehicle out of curiosity and what have the Ineos dealers/agents to say on this matter...I haven't heard from any of them lately on any matters...interesting...I hope it all goes well for you.
 
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Basically the issue is here - https://www.gov.uk/government/publications/car-derived-vans-and-dual-purpose-vehicles

I've spoken to the CIOT (chartered institute of taxation) who are in charge of keeping the HMRC on their toes (i've put the whole email at the bottom). They've said that the list of car-derived vans (CDVs from now on 🙂) hasn't been updated since 2015 and they are currently trying to decide whether to have a list of every CDV or whether they have a set list of specifications that every CDV has to adhere to.

Although he did end the email strangely - "In the meantime, unfortunately, taxpayers and their advisers are left with having to decide for themselves how the legislative definitions apply to a vehicle." - which to me says I can say that a Grenadier is a commercial vehicle but if the HMRC turn around and say no then I'll have a tonne of fines plus £19k BIK! Not a risk I want to take!!

So for now, I've cancelled by Grenadier. Which is a HUGE shame because it's built and was waiting in the factory for checks then was on it's way to me :(

Hope this helps someone.


"Thank you for your email.

We welcome comments and queries that bring to light anomalies in or problems with tax law or administration.

We can advise that we are in ongoing discussions with HMRC about keeping their guidance up to date. While we are unable to advise why the list of car derived vans and combi vans hasn’t been updated by HMRC since it was first published in 2015, we can advise that there have been discussions with HMRC about clarifying how to distinguish between a ‘van’ and a ‘car’ for VAT and benefit-in-kind purposes. These discussions include whether a definitive list can be provided given the vast number of variations possible to base models (let alone modifications to those vehicles) and, if one can, who decides (manufacturer or HMRC) the categorisation. These discussions continue and we expect will lead to better and updated guidance. In the meantime, unfortunately, taxpayers and their advisers are left with having to decide for themselves how the legislative definitions apply to a vehicle.

Please note that the Institute does not currently have the resources to provide a technical advisory service. In addition, providing advice would place us in unfair competition with members whose business is to provide such advice.
If you wish to discuss this matter with a member with specialist expertise, you can search via our online directory which is available on our website https://www.tax.org.uk/ (click on ‘Find a CTA: Online Directory’). You will no doubt wish to discuss fees with the member you select during your first contact.

In providing any response that is intended for general guidance only, no responsibility can be accepted by the Chartered Institute of Taxation for loss occasioned to you or any other person acting or refraining from action as a result of any material in our response. Our full policy on providing replies to queries is set out at https://www.tax.org.uk/contact-the-technical-team.

We hope that helps and we are sorry that we are unable to be of more assistance."
interesting...and i share your feeling 100% horrible feeling...😥
Dealer basically confirmed this to me over the phone and agreed risk was too big i wasn't the first i got the feeling.
Still following the whole thing with interest as i'm "bitten" 😊
 

Tom D

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One option is to buy through the business. Claim the vat back. Run it as a pool car for a year or two then buy it off the business personally. That way the business takes the first hit of depreciation and there’ll be a lot less vat on a 2 year old vehicle.
 
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What is your alternative vehicle out of curiosity and what have the Ineos dealers/agents to say on this matter...I haven't heard from any of them lately on any matters...interesting...I hope it all goes well for you.
I'm getting a new Hilux Invincible X

Tired of Ford's unreliability and nothing else appeals at the moment. I'll give Ineos another chance if they get it classified somehow, or until they release something on the Gren pickup.

Ineos said the below:
"I can confirm that none of the derivatives have a one tonne payload (one of the main requirements for VAT reclaim) and it does not meet the car derived van framework. My understanding of this the Grenadier is too heavy.
For benefit in kind, we can say that we do not believe HMRC would consider the 5 seat N1 station wagon to be a van as sold, as the majority of the internal vehicle space is for the carriage of people rather than goods. (N1 2 seat is vague, and HMRC would put the liability on the employer to be comfortable on the treatment)."
 
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I'm getting a new Hilux Invincible X

Tired of Ford's unreliability and nothing else appeals at the moment. I'll give Ineos another chance if they get it classified somehow, or until they release something on the Gren pickup.

Ineos said the below:
"I can confirm that none of the derivatives have a one tonne payload (one of the main requirements for VAT reclaim) and it does not meet the car derived van framework. My understanding of this the Grenadier is too heavy.
For benefit in kind, we can say that we do not believe HMRC would consider the 5 seat N1 station wagon to be a van as sold, as the majority of the internal vehicle space is for the carriage of people rather than goods. (N1 2 seat is vague, and HMRC would put the liability on the employer to be comfortable on the treatment)."

Disappointingly I too have cancelled my order for a five seat N1 after my contract was sent, but not signed. To Ineos' credit I explained at the refund stage I was cancelling because of the HMRC position and received an email saying they understood my reason; all money paid to them has been received back. I think the N1 two seater would be unarguably a van if the windows in the rear doors were blanked out and fixed in position, however as it is I wouldn't go toe to toe with HMRC over it. I am fortunate that my current Hilux (Active) will continue to do service why I wait and see what develops.
 
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Disappointingly I too have cancelled my order for a five seat N1 after my contract was sent, but not signed. To Ineos' credit I explained at the refund stage I was cancelling because of the HMRC position and received an email saying they understood my reason; all money paid to them has been received back. I think the N1 two seater would be unarguably a van if the windows in the rear doors were blanked out and fixed in position, however as it is I wouldn't go toe to toe with HMRC over it. I am fortunate that my current Hilux (Active) will continue to do service why I wait and see what develops.

Likewise, l cancelled my order for an N1 five seater last week. I agree that if IA fitted the two seater N1 with fixed and blanked out windows in the rear doors and modified the rear seat mounts, it could be classed as a van, as is the Discovery commercial, Landcruiser commercial etc. Watching this space, the modifications required would seem, on the face of it, fairly straightforward. Perhaps with the number of cancellations IA will dedicate some engineering resource to make a design change for the UK market two seater. If they do, l'll be placing an order for the two seat N1 utility wagon....
 
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This adds another angle to the whole saga;

"Urban " are partially building a business around commercial landrover pimping for business owners, (first part of video). M1; N1; fingers crossed
 
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oliverwood

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I'm getting a new Hilux Invincible X

Tired of Ford's unreliability and nothing else appeals at the moment. I'll give Ineos another chance if they get it classified somehow, or until they release something on the Gren pickup.

Ineos said the below:
"I can confirm that none of the derivatives have a one tonne payload (one of the main requirements for VAT reclaim) and it does not meet the car derived van framework. My understanding of this the Grenadier is too heavy.
For benefit in kind, we can say that we do not believe HMRC would consider the 5 seat N1 station wagon to be a van as sold, as the majority of the internal vehicle space is for the carriage of people rather than goods. (N1 2 seat is vague, and HMRC would put the liability on the employer to be comfortable on the treatment)."
If you look at the Discovery Commercial and the 2-seat Grenadier they are very similar in layout. The only difference seems to be the black film on the rear door windows of the Discovery. Not sure if the window mechanisms have been disabled as well. So surely if the Discovery Commercial is ok to be treated as a van for Bik then why not the 2-seat Grenadier?
My Grenadier would be a workhorse towing trailers / MEWPs / Chippers etc and full of work-related crap 100% of the time, so not a Chelsea Tractor. My last 3 defenders from new had all been workhorses and I loved them all and was looking forward to a modern equivalent rather than the "Hairdresser" version of a Defender JLR have come up with like the rest of their offerings ever since they produced the Evoque.

Grenadier 2 seat commercial on Youtube:
View: https://www.youtube.com/watch?v=SU9Z94ZCrOQ


Landrover commercial:
View: https://www.youtube.com/watch?v=U8S12ogSkzM
 
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DCPU

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This adds another angle to the whole saga;

"Urban " are partially building a business around commercial landrover pimping for business owners, (first part of video). M1; N1; fingers crossed
I think you get away with until you don't. Then it becomes very unfunny.
 
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If you look at the Discovery Commercial and the 2-seat Grenadier they are very similar in layout. The only difference seems to be the black film on the rear door windows of the Discovery. Not sure if the window mechanisms have been disabled as well. So surely if the Discovery Commercial is ok to be treated as a van for Bik then why not the 2-seat Grenadier?
My Grenadier would be a workhorse towing trailers / MEWPs / Chippers etc and full of work-related crap 100% of the time, so not a Chelsea Tractor. My last 3 defenders from new had all been workhorses and I loved them all and was looking forward to a modern equivalent rather than the "Hairdresser" version of a Defender JLR have come up with like the rest of their offerings ever since they produced the Evoque.

Grenadier 2 seat commercial on Youtube:
View: https://www.youtube.com/watch?v=SU9Z94ZCrOQ


Landrover commercial:
View: https://www.youtube.com/watch?v=U8S12ogSkzM
The only strange thing in my view is that nobody at Ineos thought to make sure the 2 seater at least satisfied the test of being a van. 20 odd years ago I had a commercial Isuzu Trooper, the type with the self destructing 3.0 engine, and they had the rear seats and windows removed and replaced with solid panels at the docks before passing through customs.

As for the JLR commercials I am always amazed how many then have rear seats fitted by a company that specialises in this and it is all seemingly above board. I did recently revisit the commercial Defender configurator and it appears the third front seat option has been removed unless I couldn't see it for looking.
 
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So surely if the Discovery Commercial is ok to be treated as a van for Bik then why not the 2-seat Grenadier?
My Grenadier would be a workhorse towing trailers / MEWPs / Chippers etc and full of work-related crap 100% of the time, so not a Chelsea Tractor. My last 3 defenders from new had all been workhorses and I loved them all and was looking forward to a modern equivalent rather than the "Hairdresser" version of a Defender JLR have come up with like the rest of their offerings ever since they produced the Evoque.

I was going to be using mine for workhorse stuff too most days.

It's not something I can risk because if the HMRC turn around and say actually no, I'll be with fines.
 
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The only strange thing in my view is that nobody at Ineos thought to make sure the 2 seater at least satisfied the test of being a van. 20 odd years ago I had a commercial Isuzu Trooper, the type with the self destructing 3.0 engine, and they had the rear seats and windows removed and replaced with solid panels at the docks before passing through customs.

As for the JLR commercials I am always amazed how many then have rear seats fitted by a company that specialises in this and it is all seemingly above board. I did recently revisit the commercial Defender configurator and it appears the third front seat option has been removed unless I couldn't see it for looking.
I'm not sure I understand the difference between a 2-seat Defender 110 & a 2-seat Grenadier?, is there a difference according to all of the HM Governements' various departments in the UK?
 

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I'm not sure I understand the difference between a 2-seat Defender 110 & a 2-seat Grenadier?, is there a difference according to all of the HM Governements' various departments in the UK?
Yes. The defender is light enough to qualify as a commercial.
 

Jeremy996

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Yes. The defender is light enough to qualify as a commercial.
The old Defenders, pre-2016, qualified as "Dual Use" vehicles, as they were under 2000kg.

The current Defenders are over 2,000kg and have a payload of between 702kg and 844kg, so cannot carry a tonne. If the HMRC rules are strictly interpreted,, they are also cars only. As the HMRC list has not been updated recently, 2015/16, the discretion is with your local Tax Inspector, who may or may not, be amenable.

Within my local 4x4 Response group, we have a member with a New Defender 110 Hard Top who has reclaimed the VAT and takes the "van" BIK and his accountant is happy. We do not have definitive proof either way at the moment.

Pay someone for professional advice and be prepared to sue them if they are wrong.
 

Logsplitter

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The actual amount is 2040kg for dual,purpose vehicles but I’m being pedantic and do agree with you 👍🏼😂
A dual purpose vehicle is a vehicle constructed or adapted for the carriage both of passengers and of goods and designed to weigh no more than 2,040 kg when unladen, and is either: constructed or adapted so that the driving power of the engine is, or can be selected to be, transmitted to all wheels of the vehicle.
 
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I'm not sure I understand the difference between a 2-seat Defender 110 & a 2-seat Grenadier?, is there a difference according to all of the HM Governements' various departments in the UK?
The windows in the rear doors are the difference, petty as it seems. I believe that the 2 seat Grenadier would qualify as van if the manufacturer presented it for homologation with the windows in the rear doors blanked out.
 
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