From April 2025, all double-cab pickups with a payload of one tonne or more will be classed as a car. This change follows detailed reviews and adjustments in the tax regulations to reflect their uses.

This announcement from the Government comes after a similar rule-change in February 2024, which was then overturned after it faced a significant backlash from the fleet sector due to the increase in costs for drivers, as well as the impact on the pick-up truck market.

Understanding the Change

Historically, double cab pickups have been an attractive option for many businesses due to favourable BiK tax rates, compared to company cars. Currently, these vehicles enjoy a fixed BiK rate, providing substantial tax savings. However, starting from April 2025, the tax treatment will align with that of regular company cars, which is calculated based on the CO2 emissions and the list price of the vehicle.

What This Means for Your Business

The change means that many double cab pickups will fall into the highest BiK bracket, particularly those with larger diesel engines, leading to an increase in tax obligations by as much as five times the current amount.

Transitional Arrangements

It's not all immediate doom and gloom. The government has provided transitional arrangements for vehicles that are purchased, leased, or ordered before April 2025. Such vehicles can continue to benefit from the current BIK treatment until the end of their lease, the sale of the vehicle, or until April 2029—whichever comes first.

Need Help Navigating These Changes?

Adjusting to new changes can be challenging. If your business needs guidance on how to manage these upcoming changes or reassess your fleet strategy, our team is here to help. Contact us today to ensure that your business is prepared and continues to operate efficiently under the new tax regime.