Government slams brakes on reclassification of double-cab pickups as cars

We are reaching out with significant news regarding the taxation of double-cab pickups, a subject of much discussion and concern following a recent change to guidance from HMRC.

In an unexpected turn of events, the Government has reversed its decision on the classification of double-cab pickup trucks for tax purposes due to pressure from farmers and the motor industry.

Double-cab pickups to retain van tax status

Contrary to the initial guidance that would have reclassified double-cab pickups as cars, resulting in higher taxes for owners, these vehicles will continue to be taxed as vans.

This reversal ensures that owners of double-cab pickups will not face the anticipated increase in tax liabilities.

What this means for you:

• Stable tax expenses: You can expect your tax expenses related to double-cab pickups to remain unchanged.
• Continued benefits: The van classification maintains the tax advantages associated with commercial vehicles, including benefits in kind (BIK) considerations.
• No immediate action required: Owners of double-cab pickups need not take any immediate action nor reconsider their vehicle choices based on tax implications, but for further savings, they may wish to look at the advantages of electric vehicles.

To help you navigate this update and understand its implications for your business or personal use, we have prepared new guidance:

Read our updated advice

This turn of events underscores the dynamic nature of tax legislation and the importance of staying informed.

We are committed to keeping you updated on developments that affect your tax position and business operations.

Related Posts