Double Cab Pick-Up Trucks No Longer Classed as Commercial Vehicles

How does this affect you?

A Range(r) of Benefits

Apart from the fact that the Ford Ranger is a fabulous pick-up, far and away the best-selling vehicle in its class (and the third best-selling light commercial vehicle overall in 2024), it has also been extremely tax efficient for those operating one for personal use through a business.

Company car users must pay tax and the right to use a vehicle for non-business use is considered a ‘perk’ or (as the more formal term is known) a ‘Benefit in Kind’. The amount of tax payable depends on the list price of the car, the CO2 emissions it produces, and the driver’s personal tax bracket.

A large SUV with a big diesel engine can land the driver with a hefty tax bill. Not so with a pick-up such as the Ranger, where the taxable benefit is currently a fixed, flat rate of £3,960, meaning that a 20% taxpayer will be paying just £66 per month, or £132 for those in the 40% band.

However, this situation is about to change. In late 2024, the Government announced that from April 2025, pick-ups would be treated the same as cars for benefit-in-kind tax and (importantly for business owners) corporation tax.

What does this mean in real money? Industry media outlet Fleet News has crunched the numbers and has estimated that a driver who has a Ranger with a list price of £48,000 and CO2 emissions greater than 170g/km will (if paying tax at the 20% rate) see a jump up to £295 tax payable per month. It’s £592 per month for those in the higher tax bracket. That’s a bitter pill to swallow.

All is not lost though for those who can order a new Ford Ranger quickly. During a transition period, the original benefit-in-kind arrangements will apply for all vehicles ordered before 6^th April 2025. The key word here is ‘ordered’. Even if the Ranger isn’t delivered until the end of the year, it would appear that the original tax rules will still apply. Not only this, but you’ll enjoy this reduced rate of tax until the vehicle is sold, the lease expires or until 5^th April 2029, whichever comes sooner – so, for up to 4 years, depending on when you take delivery.

If you’re ready to make some big tax savings for yourself as a business owner, for your employees or yourself as a driver, and you’re about to choose a new company vehicle, which Ranger should you choose?

Perhaps the most popular Ranger is the Wildtrak – sporting 18” grey alloy wheels and LED headlights, the double-cab Wildtrak has intense road presence. The cab interior has seats trimmed in part leather and the dash is dominated by a 12” touchscreen featuring SYNC4A – the latest fully integrated multimedia and vehicle system hardware. Take your new Ranger off-road and the display will provide predictive guidance lines over a front camera output together with pitch and roll angles. The Wildtrak even has various drive modes tailored to the surface and weather conditions.

There’s a choice of two diesel engines. A 2.0-litre, 205PS unit or a 3.0-litre, 240PS powerhouse for those that want the ultimate in performance. Both are married to Ford’s excellent 10-speed electronic automatic transmission and, of course, four-wheel drive. The Ranger Wildtrak has a 1,000kg+ payload capacity meaning that (for most businesses using the vehicle for commercial purposes) the VAT paid on either purchase or lease rentals is reclaimable.

Perhaps you’re looking for a Ranger with even more style and panache. How about the All-New Ranger MS-RT, designed by the company of the same name with its motorsport heritage?

To quote from the MS-RT website, the truck has “premium sport-inspired body styling, including a striking new front bumper with an integrated splitter, extended front and rear wheel arches and sculpted side-skirts. The rear features a cab-spoiler, redesigned rear bumper with motorsport-inspired diffuser, and a ducktail spoiler”.

Additionally, the All-New Ranger MS-RT has exclusive 21” diamond cut alloy wheels and the cab interior boasts hand-crafted Eco-Leather® and suede with exclusive sports seat bolsters and blue contrast stitching. To make the truck truly your own, there’s an optional decal kit and the seats can be upgraded to full Eco-Leather®.

Unlike most of its competitors, Ford Pro offers a full range of trucks, suitable for every purpose. The more basic but very capable single or double-cab Ranger XL has productivity in mind for those wanting a tough but no-nonsense vehicle to work in forests or tough off-road environments. The Ranger XL is in no way spartan though with its 10” SYNC4A screen and full smartphone integration, plus the 170PS diesel engine can handle pretty much everything thrown at it.

The Ranger XLT fits between the XL and Wildtrak, providing the driver with some additional equipment while the exterior is blessed with alloy wheels and body-coloured parts to enhance its appearance.

It would be remiss not to briefly mention the Ranger Raptor, the ultimate truck for performance on and off-road. However, its reduced payload means the vehicle is already considered a passenger car for taxation purposes and would not benefit from the reduced personal tax mentioned above.

The key message? Talk to a team at Allen Ford, Essex Ford or SMC Ford to order a new Ford Ranger before that critical 6^th April cut-off date. You’ll benefit from driving or operating the best, most popular pick-up available on the market today and save a small fortune in taxation over the coming years. Don’t miss out!

The above is provided as a guide only – before committing to a vehicle order, please consult your accountant or other qualified person for advice specific to your circumstances.

For more advice about commercial vehicles and their tax implications for you and your business, contact the team at our nearest convenient Transit Centre to you.

See Our Current Ranger Offers Here