Never ending news cycles and social media frenzies can turn even the simplest of things into something confusing. So, what are the facts in simple terms?
Good news - VAT rules stay the same
VAT on all pickup trucks can be reclaimed as done so previously.
Benefit-in-Kind (BiK)
This is where significant changes have come into effect. From the 6th April 2025, double cab pickup trucks with a payload over one tonne will be classified as cars for BIK tax purposes. However, this only applies if you use your pickup truck for elements of private use also. So, if you are using your truck for commercial purposes only, the BIK tax charges do not apply.
Road Tax Changes (Vehicle Excise Duty VED)
With all the changes there has been some understandable concerns and misinformation around changes to VED amongst some pick-up owners. There is, arguably, good news in that road tax will only increase by £10 per year for 2025.
Key Changes Affective from 2025
Reclassification: Double cab pick-ups will be treated as cars for capital allowances and BiK.
Transitional Provisions: Pick-ups which are purchased, leased or ordered before 6th April 2025 will continue under the previous tax treatment until the earlier of disposal, lease, expiry or 5th April 2025.
How can businesses navigate this to suit them best?
Consider purchasing, leasing, or ordering vehicles before the 5th April 2025 deadline to benefit from the transitional provisions.
Or better yet, consider purchasing a 2nd vehicle for your private use and use the pick-up for commercial purposes only 😉
