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Daily Mirror
30-04-2025
- Automotive
- Daily Mirror
New HMRC tax rule change could see drivers of certain vehicles pay extra £7,000
Owners of double-cab pick-ups are in for a shock as tax changes send bills soaring. Shifts in UK Benefit-in-Kind (BIK) tax rules mean these vehicles, previously classed as 'vans', are now taxed as company cars – thrusting tax liabilities skyward, with some drivers potentially facing an extra £8,000 annually. Businesses are set to feel the pinch, and it's not small change; additional taxes could exceed £7,000 a year under the revamped system. Tax firm Finsbury Robinson said: "The changes to the tax treatment are significant, and many business owners will be considerably worse off as a result of them. "However, there are choices that can be made to minimise tax liabilities." Earlier this year, car expert at Auto Traders cautioned that these reforms could see tax bills leap well over the £7,000 mark. They explained: "Previously, the BIK for a 'commercial vehicle' like a pickup truck was fixed at £3,960 regardless of emissions or price. "But from April, a high-priced double-cab pickup, a £50k Ford Ranger, for example, would fall into a 37 per cent BIK rate, meaning £3,550 in yearly tax for 20 per cent taxpayers, or just over £7,000 for people in the 40 per cent bracket." The game changed with a 2020 Court of Appeal ruling, which determined that double-cab pick-ups weren't primarily designed for business use as previously assumed. This verdict led HMRC to abandon the old one-tonne payload test that had categorised these vehicles as vans for tax purposes, reports Birmingham Live. Before this, pick-ups were taxed at a fixed Benefit-in-Kind (BIK) rate of £3,960, irrespective of other considerations. Under the revised regulations, taxation isn't based on the vehicle being classified as a van. Instead, it's now dictated by the pick-up's carbon emissions - a shift that has significantly increased the tax load for many drivers. This is particularly significant for those who drive diesel pick-ups, as a lot of these vehicles now fall into the higher emissions bands. The shake-up affects popular double-cab pick-up trucks like the Ford Ranger, Isuzu D-Max and Toyota Hilux.
The Sun
28-04-2025
- Automotive
- The Sun
Thousands of drivers face tax hike of over £7,000 if they own specific type of popular vehicle – check if you are hit
A HUGE tax hike is set to hit thousands of drivers across the UK. New Benefit-in-Kind (BIK) rules could change how some vehicles are classified by HMRC. 2 Owners of double-cab pick-up trucks may have to cough-up extra cash in tax as a result. Vehicles in this category include the the Ford Ranger, the Isuzu D-Max and, an old Top-Gear favourite, the Toyota Hilux. From April 6, pick-ups are being treated as company cars, rather than vans, under new customs laws, which could lead of annual tax bills of up to £8,000 for their owners. The revisions to the tax brackets come after a 2020 Court of Appeal ruling, which found that double-cab pick ups were not primarily suited to business use. This led BIK tax regulators to abandon the one-tonne payload test, which measured the weight a pick-up could carry in cargo and passengers. Under this previous system, pick-ups were taxed at a flat rate of £3,960 per year. Instead, under new rules they would be judged on carbon emissions, with huge numbers of diesel pick-ups in the top bracket (37%). For a £45,000 pick-up, a 20% taxpayer would now have to foot a tax bill of £3,330 a year, with 40% taxpayers paying £6,660 for their motor. Experts at Auto Traders have warned that more expensive models may see emissions tax bills go above the £7,000 mark. They said: "from April 2025 a £50k double cab Ford Ranger would fall into the 37 per cent BIK rate, meaning you'd need to pay £3,550 in tax if you were a 20 per cent taxpayer. "For people in the 40 per cent tax bracket, that new tax payment would be just over £7,000." The misery for truck drivers doesn't stop there, as fuel benefit rules are also changing. Pick-up drivers are now moving from a £757 van rate, to the hefty car fuel benefit multiplier of £28,200 - also varying according to emissions and income. Some experts have even warned that claiming fuel benefit won't be worth it for many truck drivers. To further turn the screw on pick-up owners, their capital allowance has been tightened too, so generous deductions against their profits can no longer be claimed. Thankfully for double- cab drivers, there is transitional relief in place. Anyone who bought or leased a pick-up before April 6 can stay under the old rules until 2029, providing a limited window to avoid the full force of these adjustments. Leading tax firm Finsbury Robinson advised: "Many business owners will be considerably worse off, but choices can still be made to minimise tax liabilities.' Unsurprisingly, a petition against the changes has been launched, demanding Labour"reverse the Tax Treatment of Double Cab Pickup Trucks in the 2024 Autumn Budget". It highlights the potential harm to businesses these changes could make, and focuses on the crucial role pick-ups play in rural jobs - with their heavy load capacity and flexibility over tough terrain. Addressed to Rachel Reeves, it claims: 'We think this change will harm many businesses, farmers, tradespeople, and individuals relying on double cab pickups for work, making work vehicles costly. "Reclassifying them as cars drastically raises costs by increasing Benefit in Kind tax and lowering their capital allowances. Any petition with 10,000 signatures will receive a formal response from the government, and any with 100,000 are considered for debate in Parliament. 2
