HMRC’s U-Turn on Double Cab Pick-Up Taxation
The Autumn Budget confirmed that from April, double cab pick-ups will face company car tax treatment rather than the lower van tax rate. This change dramatically increases BIK tax for drivers using these vehicles for work.
Originally, HMRC classified these vehicles based on specific criteria:
- A second row of seats for around four passengers, plus the driver
- Four independently opening doors
- An uncovered pick-up area
However, following industry confusion, HMRC has revised its stance. The latest guidance removes the requirement for all four doors to open independently. Now, any double cab pick-up with four doors, regardless of hinge position, will fall under the company car tax regime.
What This Means for Businesses
For businesses and self-employed professionals who rely on pick-ups like the Nissan Navara King Cab, this shift could mean a significant tax hike. Vehicles previously benefiting from van BIK rates will now be taxed at the higher company car rates, increasing costs for both employers and employees.
Who’s Affected?
Under the updated rules, models with extended, extra, or “king” cabs—such as the Nissan Navara King Cab—will be classified as company cars. If you drive a pick-up for work, it’s crucial to check whether your vehicle falls under these new tax rules.
GET FREE CONSULTATION
What Can You Do?
- Review your fleet: If your business relies on double cab pick-ups, now’s the time to reassess the financial impact.
- Consider alternative vehicles: Depending on your usage, a van or different pick-up model might be more tax-efficient.
- Seek professional advice: A tax specialist can help you understand your options and potential ways to mitigate costs.
With these changes coming into force soon, businesses and employees must act now to understand the financial implications and plan accordingly.
