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The recent Budget announcement on October 30th brought significant changes to the taxation of double cab pickup vehicles. These versatile vehicles, traditionally classified as goods vehicles, will now be treated as company cars for tax purposes.
What Does This Mean for Businesses?
This reclassification will lead to a substantial increase in Benefit-in-Kind (BiK) tax for drivers of these vehicles. This change is expected to have a significant impact on businesses across the UK, particularly those that rely on double cab pickups for operational needs.
This isn't the first attempt to reclassify double cab pickups. The previous government tried to implement a similar change in February 2024, but strong opposition from the motor industry forced them to reverse the decision.
Why the Change?
The government's rationale for this change is to address what they perceive as a grey area where double cab pickups are increasingly being used for both business and personal purposes. By treating these vehicles as company cars, the government aims to ensure that they are taxed appropriately.
To mitigate the immediate impact of this change, the government has introduced transitional arrangements. For those who purchase, lease, or order a double cab pickup before April 2025 - the previous tax treatment will apply until the earlier of disposal, lease expiry, or April 2029.
TC Harrison Ford has a wide selection of Ford Rangers, both in stock and available to order, that if ordered prior to April 2025 will enjoy the lower rates of Benefit-in-Kind tax.
Businesses that rely on double cab pickups should carefully consider the implications of this tax change. It's advisable to consult with tax advisors to understand the specific impact on your business and to explore potential strategies to minimise the financial stress.
