The New Tax Rules for Double Cab Pickups: What You Need to Know from 6 April 2025

The trusty double cab pickup has long been a favourite for its versatility, straddling the line between workhorse and family-friendly transport. But as of 6 April 2025, significant changes are coming relating to how these vehicles are treated for tax purposes. If you own, lease, or plan to purchase a double cab pickup, here’s what you need to know.

 

What’s Changing?

For years, HMRC aligned its tax classification of double cab pickups with the rules used for VAT. This system determined whether a pickup was classified as a car or a van based on payload capacity:

• Less than one tonne payload: Classified as a car.
• One tonne or more payload: Classified as a van.

From 6 April 2025, however, HMRC will no longer use these VAT-based definitions to decide the tax treatment of double cab pickups. Instead, you will need to look at the vehicle as a whole in order to determine whether the vehicle construction is primarily suited for the conveyance of goods or burden of any description (a goods vehicle). A vehicle will not count as a car for car benefit purposes if it is a goods vehicle.

The importance of the word primarily is that it:

• recognises that a vehicle may be suited to fulfil more than one purpose and

• makes it clear that a vehicle will only fall outside the definition of car in this context if it has a predominant purpose of carrying goods or burden.

If a vehicle has no predominant purpose, and is equally suited to carrying passengers and cargo, it will not satisfy this test and therefore follows that from 6 April 2025 most double cab pickups will be classified as cars when calculating the benefit charge.

 

Impact on Employers and Employees

Calculation of the benefit in kind charge differs significantly for cars and vans.

Vans have a flat rate benefit in kind charge for the year 25.26 of £4,020 whereas the benefit in kind charge for a car is worked out by multiply the list price of the car (when it was new out of the factory door) by a set percentage determined by the CO2 emissions and if applicable the electric mileage range. The higher the CO2 emissions the higher the percentage.

For double cab pickups traditionally treated as vans, this change will mean a higher tax burden for employees if their vehicle is reclassified as a car.

 

Transitional Arrangements: A Grace Period for Existing Vehicles

HMRC has introduced transitional arrangements to help businesses adapt to the new rules.
These apply to anyone who:

• Purchased, leased, or ordered a double cab pickup before 6 April 2025.

Under these arrangements, the existing VAT-based classification can continue to be applied until the earlier of:

• The vehicle’s disposal.
• The expiry of the lease.
• 5 April 2029.

This means that businesses who act before the deadline can benefit from up to four more years of the current tax treatment.

 

What Should You Do Now?

1. Assess Your Fleet: Review any double cab pickups in your fleet to determine how they might be impacted by the rule changes.

2. Plan Ahead: If you’re considering purchasing or leasing a double cab pickup, doing so before 6 April 2025 could allow you to take advantage of the transitional arrangements.

3. Stay Informed: Watch for updates from HMRC on how double cab pickups will be classified for tax purposes under the new system.

 

Looking Ahead

While the changes bring uncertainty, they also signal HMRC’s intent to create a clearer, more tailored framework for vehicle tax classification. For businesses the key will be understanding the implications of these rules and acting strategically to minimise any
potential tax impact.

The double cab pickup, a staple of British roads and worksites, remains as versatile as ever. However, its tax treatment is evolving, and staying ahead of these changes will be crucial for businesses.