Tax on double cab pickups has changed

HM Revenue & Customs (HMRC) has changed the way it taxes double cab pickups, with the prospect of greater costs for some landscape businesses going forward.

Until 5 April 2025, the popular vehicle was classified for tax purposes according to its payload capacity, with less than one tonne denoting a car and more than one tonne denoting a van.

However, from the current tax year onwards, HMRC expects most double cab pickups to be classed as cars, as they tend to be equally suited to carrying passengers and goods.

This new approach does not affect VAT, which will be treated the same as before, but it does have implications for benefit-in-kind taxes and capital allowances.

Employees who use a double cab pickup for personal use are likely to face much higher benefit-in-kind charges, while businesses face reduced capital allowances.

HMRC has introduced transitional arrangements, meaning any double cab pickup purchased, leased, or ordered before April 2025 will not be subject to the new rules until it is disposed of, its lease ends, or 5 April 2029 arrives – whichever comes first.

The change brings double cab pickups in line with crew cab vehicles, which were found to typically be cars for the same reason in a 2020 legal ruling.