From April 2025 onwards the tax classification of double cab pick ups (DCPU’s) will be changed, a new policy is being implemented that will see DCPU’s purchased treated as company cars rather than commercial vehicles for tax purposes.

“From 6 April 2025, HMRC will no longer align its interpretation of the terms “car” and “van” for tax purposes with the definitions used for VAT purposes. Under the VAT approach double cab pickups are classified based on payload capacity, with anything under one tonne classified as a car, and anything a tonne and over as a van. This rule was replicated as a pragmatic way of resolving the primary suitability and classification of double cab pickups.” HMRC

Meaning that pickup drivers will face huge tax rises in 2025  for vehicles purchased after 6 April 2025.  Double Cab pick ups such as a Ford Rangers, VW Amarok’s and many more will now sit in the highest BIK (benefit in kind) tax bracket.

Any employers that have purchased, leased, or ordered a double cab pickup before 6 April 2025 will be able to rely upon the previous treatment until the earlier of disposal, lease expiry, or 5 April 2029.

What is a DCPU?

A double cab pick up features two rows of seats and four doors, allowing them to carry multiple passengers while providing a spacious loading area at the back. Because of this they have become a firm favourite with those who need a vehicle for commercial and personal use as it provides both comfort and practicality.

Want to order your new DCPU before the tax change is implemented, contact the team today!


Posted by

Luke


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