If you’re a business owner, tradesperson, or someone who relies on a double cab pickup, it’s important to stay informed about some upcoming tax changes that could affect your vehicle costs. From April 2025, the way these vehicles are taxed in the UK will change, bringing new considerations for businesses and individuals alike.
Double cab pickups have always been a popular choice, offering the perfect blend of practicality and versatility, whether it’s for carrying tools, towing heavy loads, or serving as a reliable everyday workhorse. They’ve been classified as light commercial vehicles (LCVs), making them an efficient option from a tax perspective. However, with the upcoming tax adjustments, they will soon be reclassified as passenger cars, leading to changes in how they are taxed and what that means for their affordability.
So, what does this mean for you?
Whether you’re self-employed, run a fleet of pickups, or are considering buying one soon, it’s worth understanding how the changes could impact tax benefits like Benefit-in-Kind (BIK) and capital allowances. With a little planning, you can still make smart decisions to keep your business running smoothly without unexpected financial surprises.
What Are the 2025 Double Cab Pickup Tax Changes?
Starting from 6 April 2025, the UK government will reclassify double cab pickups as cars for tax purposes. This reclassification will affect how these vehicles are taxed, particularly in terms of Benefit-in-Kind (BIK) tax and capital allowances.
Key Changes to Expect
- Benefit-in-Kind (BIK) Tax:
Currently, double cab pickups benefit from a fixed BIK rate, making them an attractive option for business use. However, from April 2025, BIK will be based on the vehicle’s CO2 emissions and list price, which could significantly increase tax costs for company vehicle users. Read more about these changes in the HMRC BIK tax manual. - Capital Allowances:
At present, businesses can claim a 100% first-year allowance on eligible pickups. Under the new rules, these vehicles will be classified as cars, meaning they will fall under standard capital allowance rules, with only an 18% writing-down allowance. Find full details in the HMRC capital allowances manual.
Transitional Arrangements
If a double cab pickup is purchased or a contract is entered into before 6 April 2025, but the expenditure is incurred after this date and before 1 October 2025, the vehicle will still be treated under the existing tax rules. More information is available in the official government tax guidance.
For a comprehensive understanding of these changes, visit the UK Government website.
How Will the 2025 Double Cab Pickup Tax Changes Impact You?
The reclassification of double cab pickups from April 2025 will bring higher tax liabilities and reduced financial benefits for businesses and individuals. Whether you use your pickup for work or personal use, it’s important to understand the key changes and how they might affect your costs.
Higher Benefit-in-Kind (BIK) Tax
Currently, double cab pickups have a fixed BIK tax, making them an affordable company vehicle option. From April 2025, BIK will be based on CO2 emissions and the vehicle’s list price, similar to passenger cars. This could mean significantly higher tax bills, especially for high-emission models.
For example, a £40,000 pickup with high emissions could see its BIK tax rise from around £1,600 to over £14,000 per year for higher-rate taxpayers.
Reduced Capital Allowances
Businesses currently benefit from a 100 percent first-year capital allowance, but this will change to an 18 percent annual writing-down allowance, reducing the immediate tax relief available. This shift could impact cash flow and long-term planning.
Changes to VAT Reclaim
With pickups classified as cars, VAT reclaim rules may become stricter. Businesses might no longer be able to claim full VAT if the vehicle is used for both work and personal purposes.
What Should You Do Now?
To minimise the impact of these changes, consider:
- Buying before April 2025 to take advantage of current tax benefits
- Exploring lower-emission vehicles to reduce BIK tax
- Reviewing leasing options for cost efficiency
Manufacturers and industry experts are advising customers to act now before the new tax rules take effect.
Hear from Our Business Development Manager: Preparing for the Double Cab Pickup Tax Changes
Chloe Wilmot, Business Development Manager at AMT Auto
“The upcoming changes to double cab pickup tax are a key concern for businesses and employees alike. Companies now face potential increases in operating costs, while employees provided with pickups as part of their benefits will see changes to their Benefit-in-Kind (BIK) tax.
Fortunately, transitional arrangements are in place for businesses that purchase, lease, or place orders before April 2025. These businesses can continue benefiting from the current tax treatment until their lease expires, the vehicle is sold, or until 5 April 2029—whichever comes first. However, the pressure is on to act before the deadline to avoid unexpected costs.
At AMT Auto, we are here to help businesses make the most of this transitional period. Whether it’s securing a new contract hire before the cut-off date, extending an existing lease, or exploring alternative vehicles, our team is ready to assist. Our flexible rent, lease, buy, sell, and insure model ensures we can find the right solution to meet your needs.
If your business relies on double cab pickups, now is the time to plan ahead and take advantage of the available options before the rules change.”
How the 2025 Double Cab Pickup Tax Changes Are Impacting the Industry
The upcoming tax changes have prompted responses from major manufacturers, highlighting the potential impact on businesses relying on double-cab pickups.
How Manufacturers Are Responding
Ford has addressed the changes directly, stating:
“Recent changes in HMRC Guidance mean that from 6th April 2025, double‑cab pick-ups will be classified as cars for benefit-in-kind purposes, this shift will impact the cost of ownership for some company vehicle drivers. Order a Ford Double Cab Ranger before 6th April 2025 now to lock in lower van taxable benefit rates until disposal, lease end, or 5th April 2029 (whichever comes soonest).”
Toyota is proactively expanding its lineup with more fuel-efficient options. They have announced the introduction of the Hilux 48V, a mild hybrid version of their renowned pickup, aiming to provide improved fuel economy and reduced emissions.
Industry Concerns and Policy Reassessment
Trade bodies, such as the British Vehicle Rental and Leasing Association (BVRLA), are urging the government to reconsider the tax changes, highlighting potential financial pressures on small businesses and sole traders.
Future Outlook for the Pickup Market
Experts anticipate shifts in the market, including:
- A move towards single cab and alternative commercial vehicles to manage tax exposure.
- Increased demand for electric and hybrid pickups to lower running costs.
- Potential government incentives for low-emission business vehicles.
Planning ahead will be essential to avoid unexpected costs and ensure business continuity.
How AMT Auto Can Help You Navigate the 2025 Double Cab Pickup Tax Changes
The 2025 double cab pickup tax changes bring significant challenges for businesses and individuals who rely on these vehicles. With higher tax liabilities and reduced financial benefits on the horizon, it’s important to act now to avoid unexpected costs and plan ahead.
If you’re considering your next steps, securing a double cab pickup before the April 2025 deadline could help you take advantage of the current tax benefits. Exploring alternative options, such as hybrid and electric models, may also provide long-term tax savings and improved fuel efficiency.
At AMT Auto, we’re here to help you navigate these changes with a range of flexible solutions, whether you’re looking to:
- Lease a new double cab pickup before the deadline to maximise existing tax benefits.
- Rent a pickup for short-term business needs without long-term commitments.
- Buy a quality used double cab pickup, offering excellent value and reliability.
Our team of experts is ready to assist with tailored advice to ensure you choose the right solution that fits your business needs. Get in touch today to explore your options and stay ahead of the changes with confidence.