The UK government has confirmed that some double cab pick-up owners will avoid an immediate car tax increase, following concerns over new regulations set to take effect in April.
The HMRC’s latest clarification offers a temporary reprieve for businesses and fleet operators, ensuring that vehicles ordered before 6 April 2024 will continue to be classified as vans for tax purposes under transitional rules, according to Birmingham Live.
This decision comes after widespread uncertainty regarding the reclassification of pick-up trucks as company cars, which would have significantly increased tax liabilities for businesses and employees.
The announcement is expected to ease financial pressures on companies that rely on these vehicles, particularly in industries where they are essential for operations.
HMRC Revises Tax Classification of Double Cab Pick-Ups
The April 2024 tax changes stem from a decision in the Autumn Budget, which confirmed that double cab pick-up trucks will no longer be classified as commercial vans but as cars for tax purposes. This change means that businesses and employees using these vehicles would face higher Benefit-in-Kind (BIK) tax rates, increasing overall tax costs.
However, HMRC has now clarified that vehicles ordered, purchased, or leased before 6 April 2024 will still be treated as vans for taxation purposes until 5 April 2029. According to HMRC, this transitional arrangement will apply regardless of delivery date, offering businesses some financial stability in the short term.
In a statement reported by Fleet News, an HMRC spokesperson confirmed that:
“If an employer transfers a double cab pick-up to another employee between April 6, 2025, and April 5, 2029, they may continue treating it as a van for tax purposes, provided there is no disposal, and the lease has not ended.”
The decision is particularly relevant for fleet managers and businesses that placed orders before the deadline, but were unsure whether the vehicles would be taxed under the new rules upon arrival.
Industry Experts Welcome Transitional Relief
The tax changes had raised concerns among business owners, fleet managers, and leasing companies, many of whom had ordered double cab pick-ups before the rule change was announced. Industry experts argued that without a transition period, businesses would have been unfairly penalised despite making financial commitments under previous tax rules.
According to David Chandler, co-founder of tax consultancy HRUX, “We welcome the swift clarification from HMRC regarding the reallocation rules for double cab pick-ups post-April 6, 2025, until the end of the transition period (April 5, 2029).”
He added that the original HMRC stance was “understandable given the wording of the guidance,” but that it could have been “unfair on employees and employers alike.” The updated approach ensures that businesses are not immediately subject to higher tax rates on vehicles ordered in good faith.
However, some industry voices remain critical of the broader reclassification of double cab pick-ups as company cars. Harvey Perkins, another HRUX co-founder, noted that under the new rules, it will be “impossible” to argue that a double cab pick-up truck is not a car
