HMRC warning for double cab pick ups

Owners of double-cab pick-ups are facing higher bills due to this new tax change which means that these vehicles, previously classed as 'vans', are now taxed as company cars – increasing tax liabilities.  

According to the Gov.uk website: From 6 April 2025, HMRC will no longer align its interpretation of the terms “car” and “van” for tax purposes with the definitions used for VAT purposes. Under the VAT approach double cab pickups are classified based on payload capacity, with anything under one tonne classified as a car, and anything a tonne and over as a van. This rule was replicated as a pragmatic way of resolving the primary suitability and classification of double cab pickups.   

Businesses are bracing for the change which could exceed £7,000 a year under the new system.

Earlier this year, car experts at Auto Traders warned that these reforms could indeed see tax bills leap well over the £7,000 mark.

They explained: "Previously, the BIK for a 'commercial vehicle' like a pickup truck was fixed at £3,960 regardless of emissions or price. "But from April, a high-priced double-cab pickup, a £50k Ford Ranger, for example, would fall into a 37 per cent BIK rate, meaning £3,550 in yearly tax for 20 per cent taxpayers, or just over £7,000 for people in the 40 per cent bracket."

The shake-up affects popular double-cab pick-up trucks like the Ford Ranger, Isuzu D-Max and Toyota Hilux.