The government has announced a big change to the tax rules for double cab pick-up trucks.From July, they will be classed as cars, not vans. This could affect many people who have chosen these vehicles for their work and personal use because of the tax benefits.
The change was announced by HM Revenue and Customs (HMRC) on February 12. They said that from July 2024, 'most if not all double cab pick-ups will be classified as cars when calculating the benefit change'. This is because these vehicles are 'equally suited' to both transporting goods and also passengers.
At present, pick-up trucks are taxed at a flat rate of £3,960 for the 2023/2024 tax year. This means a 20 per cent taxpayer pays £792 per year, or £66 a month, and a 40 per cent taxpayer pays £1,584 per year, or £132 a month.
However, these rates will change, making pick-ups more expensive for company car tax as it will be based on their high CO2 emissions. For example, a Ford Ranger, the UK's most popular pick-up, has CO2 emissions over 200g/km, placing it in the highest BIK tax bracket of 37 per cent.Professional Pickup reports that from July 2024, a driver using a Ford Ranger Wildtrak 2.0 as a company car will face a tax bill of £290 a month, or £580 a month for a higher rate taxpayer. This could mean an extra £5,376 spent on company car tax per year under the new rules, making double cab pick-ups costly to run and potentially reducing demand.
New double cab pick-ups ordered or leased until June 30, 2024, will still qualify for the current lower tax rates, even if they aren't registered by July. Single-cab pick-ups won't be affected by these changes.