Imagine you own a double cab pickup truck – sturdy, powerful, and perfect for your work and weekend adventures. But there’s a big change coming in April 2025, and it’s going to affect the tax rules on your truck, thanks to the latest autumn budget announcement.

Until now, double cab pickups have been classed as commercial vehicles. This classification has been beneficial for owners because commercial vehicles have a simpler, flat-rate tax. However, starting April 2025, double cab pickups will no longer be classified as commercial vehicles. Instead, they’ll be taxed as regular cars. This change could mean a significant tax hike for owners, especially those using these trucks for work.

Why the Change in Classification?

The main reason for this change is due to the type of engine that most double cab pickups use – diesel. Diesel engines tend to emit higher levels of CO2, making them more polluting than many other vehicles. The government has been working to lower carbon emissions and encourage drivers to use greener vehicles. By reclassifying these pickups as cars, owners will now have to pay tax based on the emissions their truck produces, which could be a considerable amount.

What Does This Mean for Pickup Truck Owners?

Currently, owners of double cab pickups pay a flat-rate tax, called Benefit in Kind (BiK), if they use their vehicle for work. BiK is a type of tax charged on company vehicles, and for commercial vehicles, it’s typically a set amount per year. For example, if you use a double cab pickup for your job, you’ve likely been paying around £3,960 per year in BiK. This rate doesn’t change, no matter what kind of truck you drive or how much CO2 it emits.

But starting in April 2025, double cab pickups will be taxed like regular cars instead of commercial vehicles. Instead of the flat rate, BiK tax will be calculated based on the vehicle’s CO2 emissions and its total value. This could lead to a much higher tax for owners, especially those driving diesel pickups with higher emissions.

A Closer Look at BiK Tax

To understand just how big the change will be, let’s look at how BiK tax works for cars. When a vehicle is taxed as a car, BiK is determined by two main factors:

CO2 Emissions: The more CO2 the vehicle emits, the higher the tax.
Vehicle Value: The more valuable the car, the higher the tax rate.

So, if you own a truck that emits a lot of CO2 and has a high price tag, you could be paying significantly more in tax each year than before.

For example, let’s say you drive a Ford Ranger double cab pickup with a 2.0-litre turbo diesel engine, worth around £40,350. If this truck emits 230g/km of CO2, it falls into the highest BiK tax bracket for cars, meaning you’d have to pay 37% of the truck’s value in tax per year. This adds up to nearly £15,000, which is almost three times the flat rate that you would have paid under the commercial vehicle classification.

Why Are Pickup Owners Worried?

This tax increase is a big deal, especially for tradespeople who rely on these trucks for their work. Many double cab pickup owners chose their vehicles not just for their power and carrying capacity, but also because they were cheaper to tax than other options. With the new rules, they’ll likely have to pay thousands more in tax each year. For some small business owners or tradespeople, this extra cost could be hard to manage.

In addition to the increased tax, there’s another downside. Double cab pickups are often used for heavy-duty jobs, carrying tools, equipment, and supplies. But if they’re now classed as cars, owners may be expected to meet stricter emissions standards. This may limit choices for people who need a reliable, high-power vehicle for work, leading to more challenges in finding an affordable, eco-friendly option.

How Much Could the Tax Increase?

Let’s break down the numbers a little more. For a double cab pickup like the Ford Ranger, a £15,000 BiK tax could mean paying close to £1,250 per month in just tax. This is a big jump from the previous flat rate of £3,960 per year. For many owners, this extra cost might lead them to consider switching vehicles, especially if they can find a more fuel-efficient car that will be taxed at a lower rate.

For those who want to keep their double cab pickups, the higher tax is a significant cost to factor into their yearly expenses. Tradespeople who rely on these trucks might have to adjust their budgets or increase their service rates to cover the tax increase. Unfortunately, it’s a tough decision, as switching vehicles isn’t easy for everyone, especially if they have a particular need for a double cab pickup’s power and capacity.

Considering Other Options?

If you’re a pickup owner facing this upcoming tax hike, there are a few options to explore:

Switch to a Different Vehicle: Consider a vehicle with lower emissions that might fit your needs. Although it may not have the same capabilities as a double cab pickup, a more fuel-efficient vehicle can help save on taxes in the long run.
Explore Tax Deductions or Incentives: Check with a tax professional to see if there are any deductions available for business owners who use their vehicle for work. Some government programs may also offer incentives for switching to greener options.
Look into Leasing Options: Some companies offer lease plans for vehicles that include taxes in the monthly payments, potentially providing a more predictable cost structure.

Wrapping Up

The reclassification of double cab pickups from commercial vehicles to cars will impact many owners, particularly those who use their pickups for work. The change will likely result in much higher taxes, adding to the costs of operating a double cab pickup. For some, switching to a greener, lower-emission vehicle may be the best choice. For others, adjusting their budgets to accommodate the higher tax might be necessary.

So, if you’re a double cab pickup owner, now’s the time to consider your options. April 2025 might seem far away, but preparing now can help make the transition a little smoother.