February 2024 - HMRC announced that double cab pick-up trucks would be classified as cars for tax purposes.
March 2024 - HMRC reversed the decision after facing a backlash from the industry.
October 2024 - The Autumn budget reconfirmed that from April 2025, double cab pick-up trucks will officially be treated as cars for capital allowances, benefits in kind and certain business profit deductions. This change will apply to vehicles purchased or leased on or after 6 April 2025.
Currently double cab pick-up trucks only suffer a small benefit in kind. Under the new rules however, the taxable benefit will be significant.
For those who acquire double cab pick-ups before April 2025, the current tax treatment remains in place. Employers who purchase, lease or order these vehicles before 6 April 2025 and make payment by 1 OCtober 2025 can continue using the existing tax rules until the earlier of the vehicle's disposal, the lease expiry or 5 April 2029.
The VAT treatment of double cab pick-up trucks remains unchanged. As long as the vehicles has a payload of at least 1 tonne, it continues to qualify as a goods vehicle for VAT purposes, allowing businesses to reclaim input VAT under the usual rules.