HMRC updates guidance on tax classification of double cab pick-ups

HM Revenue & Customs (HMRC) has issued updated guidance on the taxation of double cab pick-up trucks, clarifying which vehicles will be affected by the Government’s decision to reclassify them as company cars for tax purposes.

We have previously brought you news of this change, set to take effect from April 2025, but businesses should be aware of the latest refinement to HMRC’s definition, which could mean some vehicles now fall within the new rules.  

What is changing? A quick recap 

Previously, double cab pick-ups were taxed as vans, making them an attractive option for businesses due to their lower BIK tax rates and favourable capital allowances.  

However, most double cab pick-ups will be treated as cars for tax purposes from: 

• 6 April 2025 for Income Tax 

• 1 April 2025 for Corporation Tax 

This change applies to capital allowances, BIK tax, and certain business profit deductions. 

Updated HMRC guidance – The new definition 

HMRC’s latest update has slightly altered the definition of a double cab pick-up for BIK purposes, clarifying that: 

• The vehicle must have four doors, but these do not need to be independently opening. 

• Two-door versions are typically still considered vans, rather than cars. 

This means that extended, extra, king, or super cabs will now be subject to company car tax. 

Reminder – Are there any transitional arrangements? 

For businesses that purchase, lease, or order a double cab pick-up before 6 April 2025, the existing tax treatment will continue until the earlier of: 

• The vehicle being sold 

• The lease expiring 

• 5 April 2029 

Additionally, capital allowances will still follow the current treatment for those purchasing before April 2025. 

What should businesses do now? 

Many companies rely on double cab pick-ups for both commercial and personal use, making the change to a higher-taxed company car status a costly change. 

Businesses should: 

• Review vehicle policies to assess the tax impact on employees and the business. 

• Explore alternative vehicle options, particularly if cost-efficiency is a priority. 

• Speak with our team of tax advisers to understand how this change will affect capital allowances and deductions. 

With the new tax rules coming into force in just over a month 2025, businesses should act now. 

If you need further guidance on how the tax classification of double cab pickups will impact your business, speak to our team today for expert advice.