Double cab pick-up trucks set for company car tax designation

Date: Tuesday, February 13, 2024   |   Author: Sean Keywood

Double cab pick-up trucks will mostly be classed as company cars rather than vans for tax purposes from 1 July 2024, according to HMRC.

Currently, the system follows that applied for VAT purposes, based on payload, with anything under 1.0t classified as a car, and anything a tonne and over as a van.

However, HMRC says this does not align with a Court of Appeal judgement, which clarified that where there are finely balanced cases, where no predominant suitability for the carriage of goods can be identified, the default position should be that vehicles are cars.  

Therefore, HMRC has announced that from 1 July, “most if not all” double cab pickups will be classified as cars when calculating their benefit charge, because typically these vehicles are equally suited to conveying passengers and goods.

HMRC says transitional arrangements will apply for employers that have purchased, leased, or ordered a double cab pick-up before 1 July 2024, under which they can rely on the previous rules until 5 April 2028, or until the vehicle is disposed of or its lease expires.


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