If you use a double cab pickup for work, there’s an important tax rule change coming in April 2025 that you need to be aware of.
For many years, double cab pickups with a payload of at least 1 tonne (1,000kg) have been classified as vans for tax purposes. But from 6 April 2025, most double cab pickups will now be classified as cars when calculating benefit-in-kind (BIK) charges.
What’s Changing?
Currently, a double cab pickup with a payload of 1 tonne or more is treated as a van. The payload is calculated by subtracting the unoccupied kerb weight from the gross vehicle weight. However, if a hard top (such as a metal or fibreglass canopy) is added, its weight (assumed to be 45kg) reduces the payload, potentially reclassifying the vehicle as a car under the old rules.
From April 2025, classification will no longer be based purely on payload. Instead, the tax status will depend on whether the vehicle is primarily suited for carrying goods. If it’s equally suited for carrying both goods and passengers, it will be treated as a car for tax purposes.
What Does This Mean for You?
If your business provides double cab pickups to employees, the change means that from 6 April 2025, most of these vehicles will be taxed as cars rather than vans. This is important because car benefit charges are usually higher than van benefit charges.
Transitional Arrangements – What If You Already Own or Lease a Pickup?
There are transitional rules to help businesses adjust to the new system. If you purchased, leased, or ordered a double cab pickup before 6 April 2025, you can continue to use the old classification rules until the earlier of:
- When you sell or dispose of the vehicle
- When the lease expires
- 5 April 2029
Examples to Help You Understand the Rules
Employer A buys a double cab pickup on 14 September 2025. Since this is after 6 April 2025, it will be classified as a car and will attract a car benefit charge.
Employer B leases a double cab pickup on 10 December 2024. Because this was before 6 April 2025, the vehicle will continue to be treated as a van until the lease expires or 5 April 2029 (whichever comes first).
Employer C purchased a double cab pickup on 10 January 2024 but traded it in for a new one on 10 April 2025. The first vehicle was taxed as a van under the old rules, but the new vehicle will be classified as a car, as it was purchased after the rule change.
Employer D ordered a pickup on 5 January 2025, but it wasn’t delivered until 2 September 2025. Because the order was placed before 6 April 2025, the previous van classification applies until disposal, lease expiry, or 5 April 2029.
How Do These Changes Affect Sole Traders?
For sole traders who use double cab pickups for their business, the new classification could impact tax deductions and capital allowances.
Previously, as vans, these vehicles could qualify for the Annual Investment Allowance (AIA) and be written off as a business expense more easily. However, if they are now classified as cars, they will be subject to different capital allowance rules, typically leading to slower tax relief over time.
Additionally, sole traders who claim vehicle expenses using the simplified mileage rate (e.g., 45p per mile for the first 10,000 miles) may not see much change. However, if claiming based on actual vehicle costs, the shift to car classification may reduce the allowable expenses.
It’s crucial for sole traders to review their vehicle tax strategy before making any new purchases after 6 April 2025.
What Should You Do Next?
If your business uses double cab pickups, it’s important to review your vehicle purchases and leases before 6 April 2025.
If you’re planning to acquire a pickup soon, consider whether it makes sense to do so before the rule change to take advantage of the transitional arrangements.