Company car drivers could save thousands on taxable benefits in a one-off offer valid until the start of the next tax year, according to tax advisers at BDO Stoy Hayward.

The opportunity has been made possible because of a clarification of the boundaries governing the classification of vehicles as either cars or vans.

Under the clarified rules, some double-cab pick-ups, effectively miniature trucks, are classed as vans and those who can convince bosses to swap their regular company car for such a vehicle could save as much as £2,500 on their annual tax bill.

Until now, there has been doubt and confusion surrounding these vehicles but the Inland Revenue has confirmed double-cab pick-ups with a payload of over 1,000kg are to be taxed as vans rather than cars.

Those who make the switch from, say, a Vectra to a Nissan 4x4 double-cab pickup, could see their taxable benefit reduced to less than £17 a month, while employers will save on National Insurance contributions (NICs).

VAT-registered businesses can also reclaim the full VAT costs on the purchase of a double-cab pick-up, a saving of around £3,000 on the average £20,000 price of this type of van.

Matt Jenner, tax partner, BDO Stoy Hayward, said:

"Some high-mileage company car owners are being saddled with more than a twofold increase in their tax bill, dependent on the car's emission levels.

"This clarification could provide a costeffective alternative to a company car, a win-win situation for both owner-managers and employees."

Before changes to the company car fleet, BDO Stoy Hayward recommends time is taken to consider the practicalities of owning a double-cab pick-up compared to an ordinary car and the long-term value.

The Inland Revenue is carrying out a review of the van tax charge and many tax experts believe the emission-based tax rules governing company car tax will be widened to include vans in the 2003/04 tax year.

It may, therefore, be worth establishing the emission figure for a double-cab pick-up before switching.