Double Cab Pick Up Classification

From 6 April 2025, most double cab pick ups will be taxed as cars, not commercial vehicles. This change affects how businesses deduct the cost of the vehicle and how employees are taxed on company car use.

Companies would previously benefit from being classed as a commercial vehicle and so could claim generous tax allowances and the VAT back.

For any company buying after 6 April 2025, the vehicle will be classed as a car and unless proved to be a pool car (no private use) will also incur a benefit in kind which will cost both the company and the director in terms of National insurance and Personal Tax.

Tax changes 

• Benefit-in-Kind (BIK)

Double cab pick ups will be taxed using the car BIK rate, which ranges from 2% to 37% based on the vehicle’s CO2.

• Capital allowances

Double cab pick ups will be taxed using the company car rate, which ranges from 6% to 100% based on the vehicle’s CO2.

How is a double cab pick up defined?

HMRC defines a double cab pick up as having:

• A front passenger cab with a second row of seats
• Four doors that can open independently

Impact on businesses

These changes will impact how businesses deduct the cost of the vehicle and how employees are taxed on company car use.

If you have any questions regarding this email then please contact your client manager.