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In the Chancellor’s Autumn Budget 2024 there was some bad news for pick-up truck drivers. Double cab pick-ups will be classed as cars for tax purposes starting in April next year, which will profoundly affect the benefit-in-kind (BiK) tax on these vehicles.
Double cab pick-ups (DCPUs) with a payload of one tonne or more will now be treated as company cars under plans revealed by the Government in the Autumn Budget.
The new rules will apply from 1st April 2025 for corporation tax and from 6th April 2025 for income tax with double cab pick-ups treated as cars for the purposes of capital allowances, benefit in kind (BiK) and some deductions from business profits.
Double cab pick-ups are usually considered commercial vehicles if their payload is rated at 1,000kg or more under 2024 rules. This grants drivers using them like company cars a lower rate of benefit-in-kind taxation which, for a 20% taxpayer, works out at about £66 a month.
If BiK rates are aligned with cars they will be based on a percentage of the value of the pick-up, which means a driver using a Ford Ranger Wildtrak 2.0 as a company vehicle will see their £66 monthly tax bill rise to around £300 with a higher-rate taxpayer facing a £600+ monthly charge.
A transitional arrangement will be in place before the changes come into force, ensuring that any current owner or driver isn’t affected.
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.
