Double Cab PickUps Are Still Vans And Not Cars!

Double cab pickups have long been a popular choice for many businesses in the UK, especially in the farming and construction sectors. These vehicles are known for their off-road capabilities and load-carrying capacity ...

For over two decades, double cab pickups have been classified as vans for company car tax purposes, resulting in lower tax rates for employers and consumers. However, this was set to change on the 1st of July 2024, when these vehicles were to be brought in line with the company car tax regime.

"But the Government just performed a screeching u-turn!"

The original change in tax treatment came after a Court of Appeal ruling, which stated that modified vans should be treated as cars for VAT purposes. This prompted HMRC to update its guidance, stating that most, if not all, double cab pickups will be classified as cars for benefit-in-kind tax purposes from 1 July 2024. This is because these vehicles are often used as passenger cars and have no predominant suitability for carrying goods.

But after just a week of outrage by organisations for farmers, trades and the motoring industry in general, the Government u-turned and scrapped the updated guidance meaning double-cab pickups will be treated as vans for the foreseeable future.

It has also been confirmed by HMRC that capital allowances for the first year of use will not be reduced when a business purchases a double cab pickup for use in their trade!

However, HMRC has confirmed that the update is only for double-cab pickups with a payload of one tonne or more so those with less than one tonne will continue to be treated as cars, as they were before.

The changes in UK tax law were set to come into effect on the 1st of July 2024, but I'm pleased to say that they will now not be happening.

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