Here's What You Need To Know:
From 6 April 2025, new tax rules will affect how double cab pick-ups are treated for tax purposes. If you own or use one for business, here’s what you need to know—explained in simple terms (because tax talk doesn’t have to be painful!).
What's Changing With The Tax Rules For Double Cab Pick-Ups?
Right now, most double cab pick-ups are treated as vans for tax purposes. This means businesses can claim capital allowances (CAs) and employees might get a better deal on benefits-in-kind (BIK) tax. However, from 6 April 2025, these vehicles will be taxed like cars instead. And that’s not great news because car tax rules tend to be less favourable than van tax rules.
Does This Affect You?
That depends. If you already own a double cab pick-up before 6 April 2025, you might be able to continue using the current tax treatment under transitional rules. If you’re planning to buy one after that date, expect it to be taxed under the new (harsher) car rules.
The Silver Lining: Transitional Rules
HMRC has set up some transitional rules, which means if you already have a double cab pick-up before the cut-off date, you could continue to enjoy the van tax treatment until 6 April 2029. That gives businesses a bit more time to adjust to the changes.
What Should You Do Next?
• Check if your vehicle qualifies for transitional rules so you don’t pay extra tax unnecessarily.
• Consider your vehicle choices before buying a new double cab pick-up after April 2025.
• Stay informed! Visit the HMRC website or check with your accountant to make sure you’re making the most tax-efficient decisions.
Final Thought: Don’t Get Caught Off Guard
No one likes surprise tax changes (except maybe tax accountants), but being prepared will help. If you rely on a double cab pick-up for work, now’s the time to understand how these rules will impact you and plan accordingly.
For more details, you can check out HMRC’s official guidance here. If you need help from some one, don't forget you can reach out to us here at McCarthy Browne, either send us an email or WhatsApp us.