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HMRC Changes Tax for Double Cab Pickup Trucks

As of April 2025, double cab pick-up trucks with a payload capacity of one tonne or more will be classed as passenger cars for tax purposes. These new changes will affect the Benefit in Kind (BIK) and capital allowances, potentially affecting taxable deductions for business users.

The UK government announced in 2024 that double cabs would be treated as company cars with tax arrangements. This aligns with a recent law case and HMRC’s revised interpretation of tax legislation.

Who is Affected?

These changes that come into action in April affect individuals and businesses who rely on double-cab pickups for commercial purposes.

Increasing the tax burden on employees and businesses who use double-cabs for their commercial uses will directly affect the Benefit-in-Kind taxation by reducing the ability to claim tax relief for purchasing these vehicles as business assets.

What Is the Current Benefit-in-Kind Rates for Vans and Pickup Trucks?

For those who are operating a double-cab that can carry a one or more tonne payload are currently taxed as a light commercial vehicle. If you drive a company-owned pickup, you will be charged a flat fee of £3,960 for the year.

Benefit

BIK Rate

Accessible Income

Higher Rate Taxpayer (40%)

Vehicle

£3,960

£3,960

£1,584

Fuel

£757

£757

£303

Total

-

£4,717

£1,887

 

What Can I Do?

HMRC have announced for those who buy or lease their double cab pickup truck before April 2025 will be allowed to claim capital allowances. After this period, the new tax laws will come into effect.

Our best advice is, if you are currently considering a double-cab pickup truck for your business, we advise ordering with enough time for it to be delivered before April 2025. This might help relieve some taxation for your company and avoid the new changes that are coming.

Ford Ranger Double Cab
Ford Ranger Double Cab

Upcoming Changes to Benefit-in-Kind, Effective April 2025:

Description

Value

List Price

£40,000

CO2 Emissions

200 g/km

BIK Percentage

37%

Vehicle BIK

£14,800

Fuel BIK

£10,434

Total BIK

£25,234

Tax Cost (40%)

£10,094

What About Single Cab Pickups?

If you are considering leasing or purchasing a single cab pickup truck, these will continue to be classified as a van for taxation and BIK purposes, this means the current flat-rate BIK charge will remain unchanged during 2025’s tax year.

For double-cab pickups, the current benefit-in-kind rates will remain unchanged if leased before April 2025, unless the lease expires, the vehicle is disposed of, or until the deadline of April 5th 2029.

Isuzu D-Max Single Cab
Isuzu D-Max Single Cab

Note: All the information above is based on current legislation and may be subject to change. It is advisable to consult with your accountant or a tax professional for the most up-to-date information for your business. We also recommend referring to the official HMRC website for guidance.

Speak to Our Commercial Team Order Your Double Cab Today