From April 2025, the double-cab pickup tax will change as these vehicles will no longer be classified as commercial vehicles. 

This will lead to big tax increases for some owners, so it's important to determine whether the commercial vehicle tax changes will affect you before they're implemented. 

Find the essential details and how they'll affect you below.

What are the UK pick-up truck tax changes?

As of April next year, double-cab pickup trucks will be classified as cars for tax purposes. The new tax comes as part of the 2024 autumn budget.

This will significantly impact the benefit-in-kind (BiK) tax for these vehicles. BiK are goods and services provided to an employee at a reduced rate or for free.

Currently, light commercial vehicles (e.g., double cab pickups with a carrying capacity of one tonne or more) are subject to a flat BiK tax rate of £3,960 annually for company drivers.

However, starting in April 2025, they’ll be reclassified as cars, and BiK tax will instead be calculated on a sliding scale based on emissions.

Given the typically high-emission diesel engines of most double-cab pickups, this change is expected to substantially increase drivers' tax bills.

An example of the new commercial vehicle tax changes

The new pick-up truck tax changes will depend on what kind of vehicle you own. Let's quickly look at an example.

If you drive a company-owned vehicle that falls into the highest BiK bracket for company cars, you may end up paying as much as £15,000 per year. This is almost three times the current flat rate for light commercial vehicles.

It's a significant hit for tradespeople who depend on these trucks for their work.

What to do for existing double-cab pickup trucks?

Do you already own a double-cab pickup truck? HMRC has announced transitional BiK tax arrangements for employers who have bought and invested in these vehicles.

Any business that purchased, ordered, or leased a double cab pickup before April 2025 can continue using previous tax treatments. 

However, note that this transactional treatment will only be valid until:

• The vehicle is disposed of
• Lease expiration
• 5th April 2029 (if the above don’t occur first)

So, if you currently have one of these pickups, you have some flexibility before and after the new tax rules are implemented. 

Effects of the new pick-up truck tax changes

Aside from higher taxes, what do these changes mean for the industry?

The new regulations may lead businesses in industries like construction and farming to rethink their pickup vehicle fleets.

While reliable, double-cab pickups will face higher BiK taxes, which will lead to increased costs for employers due to added National Insurance contributions. 

Many businesses might switch to traditional vans to reduce the tax burden, which still benefits from lower BiK rates. We might also see a switch to electric vehicles (EVs), which offer reduced taxes thanks to their lower emissions.

Double cab pickup tax key dates

Make a note of these vital commercial vehicle tax change dates:

• 1st April 2025 — Double cab pickups will be classified as passenger cars for Corporation Tax purposes.
• 6th April 2025 — For Income Tax, double cab pickups will be classified as cars for BiK and profit deductions.

How Bumper can help

Running any vehicle can get expensive, especially when you’re facing last-minute repairs and emergency expenses.

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