In the Autumn 2024 Budget, the UK government confirmed plans to reintroduce taxes on double cab pick-up trucks used as company cars, a policy set to take effect in April 2025.
This move, which was originally proposed by the Conservative Party in the March 2024 Budget but later shelved, has now been reinstated by the Labour government in its first fiscal blueprint.
The change means that popular double cab models such as the Isuzu D-MAX, Ford Ranger, and Toyota Hilux will be treated as company cars, rather than commercial vehicles, starting in April 2025. As a result, businesses that provide these trucks to employees will face significantly higher benefit-in-kind (BIK) taxes.
Under the new rules, double cab pick-up trucks with a payload of one tonne or more will be classified as cars for tax purposes. This will impact capital allowances, BIK taxes, and business profit deductions, with the new measures coming into force on April 6, 2025.
Fleet operators will also be affected, as the tax treatment of cars is typically more expensive than for commercial vehicles. As a result, businesses using these trucks as part of their fleet may face higher income tax and national insurance costs.
