Vehicles used for work purposes are at the centre of a growing controversy as the UK government faces mounting pressure to reverse tax changes set to take effect in April 2025. The reclassification of double cab pickup trucks as cars for taxation purposes could see some business owners and workers facing an annual tax increase of up to £8,880, sparking outcry from affected industries.
A public petition, already signed by thousands, urges Chancellor Rachel Reeves to overturn the change, warning it will financially burden businesses, farmers, and tradespeople who rely on these vehicles for work. Critics argue that double cab pickups have long been classified as commercial vehicles due to their utility, and the reclassification ignores their essential role in rural and trade sectors.
Double Cab Pickups to Lose Tax Advantages From April 2025
According to GB News, from April 2025, the HM Revenue and Customs (HMRC) will reclassify double cab pickup trucks as cars rather than light commercial vehicles. This means businesses will lose access to favourable tax treatments, including full expensing and the 100% Annual Investment Allowance for new purchases.
The corporation tax changes will take effect from 1 April 2025, while income tax adjustments will begin on 6 April 2025.
The most significant financial impact comes from changes to the Benefit-in-Kind (BiK) tax, which will now be based on the list price and CO₂ emissions rather than a flat rate.
For example, a Ford Ranger, which currently incurs a BiK tax of £804 per year for basic rate taxpayers, will see its BiK value surge to £22,200 due to CO₂ emissions over 200g/km.
This means a basic rate taxpayer will now pay £4,440 per year, while those in the higher rate bracket will see their tax bill soar to £8,880.
Campaigners argue the change fails to recognise the necessity of these vehicles in industries such as agriculture, construction, and rural services. A petition launched to challenge the decision states: “We think this change will harm many businesses, farmers, tradespeople, and individuals relying on double cab pickups for work, making work vehicles costly.”
Government Faces Backlash Over Tax Burden on Businesses
The tax revision represents a major departure from HMRC’s previous stance, which treated double cab pickups with a payload of over one tonne as commercial vehicles. Now, only single cab pickups are expected to maintain their commercial status, though official confirmation is still pending.
While the government has introduced a transitional arrangement, allowing businesses that purchase or lease double cab pickups before April 2025 to keep the current tax benefits until April 2029, critics argue this does little to help new buyers after the deadline.
Industry experts warn that the change could dissuade businesses from investing in these vehicles, increasing costs for those needing heavy-duty transport. Though the government has indicated that these vehicles may still qualify for VAT relief if their payload exceeds one tonne, tax professionals urge companies to seek professional advice before making new purchases.
The Treasury has yet to formally respond to the petition, but growing public pressure could prompt further discussions on whether these tax hikes should be reconsidered
