Important Tax Changes for Double-Cab & Extended-Cab Pickups

Date Posted: 18 December 2024

As of April 2025, HMRC has updated its Benefit-in-Kind (BIK) and Capital Allowances (CA) legislation, significantly affecting extended and double-cab pick-up trucks across the UK. These vehicles are now classed as company cars for BIK and CA purposes, which may increase tax liabilities for businesses and drivers using them as company vehicles.

However, it’s not all bad news. Despite this shift, the Isuzu D-Max pick-ups we supply here at Vale Motors still qualify for key commercial vehicle benefits, provided they meet the necessary criteria:

VAT Reclaim: Still fully reclaimable for VAT-registered businesses, as the Isuzu D-Max boasts over a 1-tonne payload.
Annual Road Tax (Vehicle Excise Duty): Remains at a flat commercial vehicle rate of £360.

We know this update has caused quite a bit of confusion for drivers, accountants, and local business owners across Somerset and beyond. Here at Vale Motors Isuzu in Wincanton, our team is fully committed to helping you understand exactly how these changes apply to your business. Whether you’re buying for business use, farm work, or operating a local fleet, we’re here with clear guidance and expert support to ensure you stay compliant while getting the most out of your pick-up.

If you would like to speak to our Ean Jones about these changes, pop into our Wincanton showroom or contact Ean today!

Yes. VAT remains fully reclaimable on all double and extended cab pick-ups with a payload over 1 tonne, provided your business is VAT-registered and making fully taxable supplies. This key advantage continues to support our hardworking customers in local farming, construction, and logistics.

Yes. As of 6th April 2025, HMRC classifies newly registered double and extended cab pick-ups as company cars for Benefit-in-Kind (BIK) and Capital Allowance (CA) purposes. This follows a Court of Appeal ruling stating these vehicles do not have a predominant goods-carrying purpose.

No. Despite the change in classification for BIK and CA, VED (road tax) for double and extended cab pick-ups remains at the commercial vehicle rate of £360 per year, offering continued affordability for our business customers.

From 6th April 2025, BIK on double and extended cab pick-ups is calculated based on CO₂ emissions, just like company cars. Rates range from 3% to 37%:

Zero-emission pick-ups start at 3%, rising by 1% annually until 2028.
Higher-emission vehicles are taxed at proportionally higher rates.

Yes. Vehicles ordered, purchased, or leased before 6th April 2025 will retain the previous commercial vehicle BIK treatment until the vehicle is disposed of, the lease expires, or 5th April 2029 - whichever comes first.

From 1st April 2025 (for corporation tax) and 6th April 2025 (for income tax), double and extended cab pick-ups no longer qualify as "plant and machinery" for CA purposes. Instead, they now follow company car writing-down allowances, which vary by CO₂ emissions (ranging from 6%, 18%, or 100% for zero-emission vehicles). To qualify under the old regime, expenditure must be incurred before 1st October 2025.

No. Single cab pick-ups are entirely unaffected and will continue to be treated as commercial vehicles in all respects - BIK, VAT, VED, and CA.

Extended cab pick-ups are affected; however, single cabs will be unaffected by the changes as HMRC ruled that they demonstrate clear suitability for commercial use.

At Vale Motors Isuzu, Ean Jones, our pick-up professional in Wincanton, is fully committed to supporting our customers. It is his utmost priority. He will continue to monitor developments closely to help you navigate these changes effectively.

Contact Ean

New Isuzu in Stock

Special Offers