*Anybody buying, leasing, or ordering a double-cab pick-up before 6 April 2025 will benefit from the current classification until the vehicle is disposed of or handed back to a leasing company. Currently double-cab pick-ups are typically considered commercial vehicles if their payload is rated at 1,000kg or more. This gives drivers using them as company cars a lower rate of Benefit-in-Kind taxation, which, for a 20% taxpayer, works out at approximately £66 a month. From 6 April 2025 everybody affected will pay the new tax rates. From this date, the government will treat double cab pick-up vehicles with a payload of one tonne or more as cars, rather than commercial vehicles, for certain tax purposes. This will include the likes of corporation tax, income tax, capital allowances, Benefit in Kind (BIK) as well as some deductions from business profits. With BIK rates for double cab pick-ups aligning with cars, this changes the BIK to being based on a percentage of the value of the pick-up.

By way of example, this means a driver using a Ford Ranger WildTrak 2.0 as a company vehicle could see their £66 monthly tax bill rise to around £300 for someone on a 20% tax rate, with a higher-rate 40% taxpayer facing a £600 monthly charge, a potential cost difference of up to £468 extra per month or £5616 extra per annum in BIK tax. There also may be certain other new taxes incurred with these changes, including but not limited to increases to capital allowance taxes and profit deductions.

Please note that the above example is an illustration only. Select is not a tax adviser, therefore we recommend speaking to your tax adviser for specific guidance regarding these Pick-Up tax changes and your individual / business circumstances.