Double cab pickups – How long will they be taxed as vans and when will they switch to car tax rules?
8 Jan 2025
For years, double cab pickups have benefited from being classified as goods vehicles for tax purposes, allowing businesses to enjoy lower benefit-in-kind (BIK) rates.
However, from 6 April 2025, most double cab pickups will be reclassified as cars for tax purposes, increasing tax liabilities for employers and employees alike.
So, how long will they still be treated as goods vehicles, and when exactly does the tax treatment change?
How are double cab pickups taxed now?
Under current tax rules, double cab pickups with a payload capacity of at least one tonne are classified as vans. This means:
- A fixed taxable amount applies to employees using the vehicle privately. For 2024-25, this is £3,960.
- If fuel is provided for private use, an extra charge of £757 applies.
- Lower tax liabilities compared to company cars, making double cab pickups a tax-efficient choice for businesses.
This classification follows VAT rules, which define a vehicle as a goods vehicle if it has a payload of at least one tonne. However, this approach is soon to change.
What is changing from 6 April 2025?
From 6 April 2025, HM Revenue & Customs (HMRC) will no longer follow VAT definitions when determining whether a vehicle is a van or a car for tax purposes.
Instead, classification will be based on the primary suitability test.
If a vehicle is equally suited for carrying passengers and goods, it should default to car classification rather than being treated as a van.
Most double cab pickups fall into this category, meaning from 6 April 2025, they will be classified as cars for benefit in kind (BIK) purposes.
The BIK charge for cars is much higher than for vans, as it is based on the vehicle’s list price (P11D value) and CO2 emissions rather than a fixed sum.
This change could increase tax costs for both businesses and employees.
How long can businesses continue to use the old rules?
If you already own or lease a double cab pickup before 6 April 2025, transitional arrangements will apply. This means you can continue using the van tax treatment until the earlier of:
- Disposal of the vehicle
- Expiry of the lease
- 5 April 2029
This provides a limited window for businesses to continue benefiting from the lower van tax rates.
With these dates in mind, here are some examples of how the new rules will apply.
Example 1
Employer purchases a double cab pickup on 14 September 2025:
- As this is after 6 April 2025, it is classified as a car under the new rules.
Example 2
Employer leased a double cab pickup on 10 December 2024:
- Because this was before 6 April 2025, the van rules apply until the lease expires or 5 April 2029.
Example 3
Employer purchased a double cab pickup on 10 January 2024, then traded it in for another on 10 April 2025:
- The first vehicle is taxed as a van until 10 April 2025.
- The new vehicle is classified as a car, as it was bought after 6 April 2025.
Example 4
Employer ordered a double cab pickup on 5 January 2025, but it was not delivered until 2 September 2025:
- Because the agreement was made before 6 April 2025, the van rules apply until disposal, lease expiry, or 5 April 2029.
What should businesses do now?
- Review your vehicle plans – If you rely on double cab pickups, consider purchasing or leasing before 6 April 2025 to take advantage of the existing rules.
- Prepare for higher tax liabilities – Employees using these vehicles for private purposes will see their tax burden increase when the rules change.
The transitional rules and tax implications surrounding double cab pickups can be complex, so professional advice from our team can help businesses optimise their approach. Contact us today for more information and advice.
