Thousands of drivers could be left thousands of pounds worse off as a major tax change hits popular double-cab pick-up trucks like the Ford Ranger, Isuzu D-Max and Toyota Hilux. From April 6, new Benefit-in-Kind (BIK) tax rules mean these vehicles are no longer treated as vans but as company cars, dramatically increasing the amount of tax owners must pay. Experts warn some drivers could be slapped with annual tax bills of up to £8,000.
The crackdown follows a 2020 Court of Appeal ruling that found double-cab pick-ups were not primarily suited to business use. This ruling forced HMRC to scrap the old one-tonne payload test that classified them as vans. Under the old system, pick-ups were taxed at a flat BIK rate of £3,960. Now, they’re taxed based on carbon emissions, and many diesel pick-ups fall into the top 37% emissions band. For a £45,000 truck, a basic rate taxpayer now faces a bill of £3,330 a year, while higher rate taxpayers could pay around £6,660.
Auto Traders experts warned earlier this year that bills for these drivers could jump above £7,000.
They said: “Previously, the BIK for a ‘commercial vehicle’ like a pickup truck was fixed at £3,960 regardless of emissions or price.
“But from April, a high-priced double-cab pickup, a £50k Ford Ranger, for example, would fall into a 37 per cent BIK rate, meaning £3,550 in yearly tax for 20 % taxpayers, or just over £7,000 for people in the 40 % bracket.”
Fuel benefits are also changing, with pick-up drivers moving from a £757 van rate to a hefty car fuel benefit multiplier of £28,200, again based on emissions and income. Experts say in many cases, claiming fuel benefit will no longer be worthwhile.
Capital allowances for pick-ups have been tightened too, meaning owners can no longer claim generous deductions against profits.
However, transitional relief is in place: those who bought or leased a pick-up before April 6 can stay under the old rules until 2029, offering a limited window to avoid the full brunt of the changes.
Finsbury Robinson, a leading tax firm, said: “Many business owners will be considerably worse off, but choices can still be made to minimise tax liabilities.”
In response to the changes, a petition has been launched on the official Parliamentary website, calling on the Labour Government to “reverse the Tax Treatment of Double Cab Pickup Trucks in the 2024 Autumn Budget”.
Addressed to Chancellor Rachel Reeves, the petition argues: “We think this change will harm many businesses, farmers, tradespeople, and individuals relying on double cab pickups for work, making work vehicles costly. Reclassifying them as cars drastically raises costs by increasing Benefit in Kind tax and lowering their capital allowances.”
It highlights the crucial role pick-ups play in rural operations, pointing out their heavy load capacity and ability to handle rough terrain.
If the petition reaches 10,000 signatures, the government will issue a formal response; at 100,000, it will be considered for debate in Parliament.
