Double-cab pickups and whether an EV is right for you

Over a year has passed since changes to the taxation of double-cab pick-up trucks came into effect.

We wanted to issue a reminder about the tax implications of choosing these vehicles for your business and highlight which alternatives might be more attractive.

What were the changes?

Previously, these vehicles were taxed as vans, which gave them favourable Benefit-in-Kind (BiK) taxation and capital allowances relief.

However, as of April 2025, double-cab pickups have been reclassified as company cars for income and corporation tax.

HMRC’s new definition for a double-cab pickup is as follows:

• The vehicle must have four doors, but these do not need to be independently opening.

• Two-door versions are typically still considered vans, rather than cars.

This includes trucks with extended, extra, king or super cabs.

Are transitional arrangements still active?

There were and remain transitional arrangements in place for those who purchased, leased or ordered a double-cab pickup before 6 April 2025, allowing access to the old tax treatment.

However, we want to remind businesses that any new purchases of these vehicles will be taxed under the new guidance.

What other options are available?

For those exploring cost-efficient vehicle options for their company, tax reliefs for Electric Vehicles (EVs) make these cars highly favourable compared to petrol and diesel alternatives.

Businesses transitioning to EVs can reduce tax liabilities through the following methods:

• First-year allowance (FYA): To buy a brand-new EV outright or through a hire purchase means the entire cost can be deducted from taxable profits, before corporation tax
• Ultra-Low BiK rates: Buying an electric company car gives businesses access to heavily discounted BiK rates, currently sitting at around four per cent
• VAT recovery: Businesses can reclaim 50 per cent of the VAT on lease payments. Or, if bought outright and for strictly commercial reasons, this can rise to 100 per cent
• Charge point allowances: When installing a charging infrastructure at their premises, businesses can claim a 100 per cent first-year allowance

Need further guidance?  

If you are in the market for a new company vehicle and want to make sure you are getting the right one, we are happy to talk about the choices available.

Please get in contact with our team so we can guide you through your options, outline their tax implications and help you decide with confidence.

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