Your Questions Answered by TaxAssist Accountants

What are the changes for double cab pick-up trucks?

I own a pick-up truck for my business, and I am not sure if the tax changes from April will affect me – what is changing?

Answer

In short, classification of double cab pick-ups (DCPUs) from April 2025 will change.

Currently, when classifying a double cab pick-up as a car or a van, the main consideration is the payload* of the vehicle. A double cab pick-up** that has a payload of one tonne (1,000kg) or more is accepted as a van for benefit in kind and capital allowance purposes. Any DCPU under one tonne is classified as a car. 

From 1st April 2025, the changes in classification of DCPU means that most double cab pick-ups will now be classified as cars, because they are suited to carrying passengers. 

The changes mean that under benefit in kind rules, the company car rules would have applied, rather than the flat rate benefit value for vans. Typically, company car benefits give rise to higher tax liabilities for employees and employers. 

If you already own a DCPU, then transitional rules will apply meaning its current treatment will apply until the earlier of: 

• Disposal date 
• Date of lease expiry 
• 5th April 2029

The changes do not affect single cab pick-ups. 

* Payload means gross vehicle weight less unoccupied kerb weight. 

** A double cab pick-up normally has a front passenger cab with a second row of seats, seating five people. It has four doors capable of being opened independently and an uncovered pick-up area behind the passenger cab. 

Information supplied by Cheryl Hopkins, Chartered Certified Accountant, TaxAssist Accountants. Advice shared in this article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayers’ circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take, action, as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.