From 6 April 2025, double cab pick-up trucks with a payload of at least one metric tonne will no longer be classified as vans for benefit-in-kind (BIK) or capital allowance purposes.
HMRC has confirmed “significant” car tax changes – with petrol and diesel drivers facing enormous costs from April. Labour Party government Chancellor Rachel Reeves unveiled a raft of tax changes in the Autumn Statement last October.
It includes expensive first year rates for new vehicles and Benefit-in-Kind rules. From 6 April 2025, double cab pick-up trucks with a payload of at least one metric tonne will no longer be classified as vans for benefit-in-kind (BIK) or capital allowance purposes.
Instead, they’ll be treated as cars, aligning with recent case law and HMRC’s revised interpretation of tax legislation. Alan Able, managing director of Isuzu UK, said: “We appreciate HMRC’s latest clarification, which provides businesses with a more definitive understanding of how both double cab and extended cab pick-ups will be classified for Benefit-in-Kind and capital allowance purposes from April 2025.
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“This additional guidance is essential for fleets, businesses and individual buyers as they navigate these significant changes.” Able added: “The BiK campaign reflects our commitment to keeping our customers informed and empowered. We recognise that HMRC’s decision represents a fundamental shift in how double cab pick-ups are taxed.
“With this campaign, we aim to ensure our customers understand the implications and encourage them to act now to avoid higher costs later.” If your current double cab pick-up is nearing the end of its life, replace it before the new rules take effect to lock in the current tax benefits until April 2029.
Drivers can aslo assess whether single cab pick-ups or other commercial vehicles might better suit your needs while maintaining favourable tax treatment. Private use of vehicles classified as cars attracts stricter rules.
To avoid hefty BIK charges, vehicles should be stored at the business premises outside work hours, have no private insurance coverage, and be used strictly for business.