the UK govt decided that effective April 2025, all double-cab pickups will be considered cars for taxation purposes, significantly increasing costs for those running them as company vehicles

The most crucial change to company pickup users will be benefit-in-kind taxation, significantly increasing costs for the end user. If the BIK rates are aligned with cars, a driver using a Ford Ranger Wildtrak 2.0 as a company vehicle will face a company car tax bill of around £300 a month, rising to almost £600 a month for a higher rate taxpayer — an increase of 350% over the existing figures. 

Capital allowance rules will also change in April 2025. Businesses have been able to claim capital allowances on vehicles that are not cars, expensing up to 100% of the cost of a double-cab pickup. The new rules will place pickups alongside cars, limiting the allowance to just 18%. Reclassifying pickups as cars might also affect a business’s ability to apply vehicle expense deductions from profits

The previous Conservative government made the same changes to BIK rates in February 2024, before reversing its decision a week later following a significant backlash, especially from the farming industry.

The change in definition follows a legal case between Coca-Cola and HMRC, which concluded that a vehicle should be clearly suited to one task or another and that no decision should be based on a narrow margin. In cases where it’s not clear if a vehicle is primarily suited for carrying goods or people, it should be classified as a car.

https://professionalpickup.com/tax-turnaround-hmrc-cancels-planned-pickup-tax-hike/