Double Cab Pick-Ups to be Treated as Company Cars
Over the past year or so, we’ve had many questions from our clients regarding HMRC’s treatment of double cab pick-ups and this certainly wasn’t helped by a U-turn by HMRC last year regarding how they would treat these vehicles, that left many people confused.
Traditionally, commercial vehicles have been treated more favourably than cars for employees who drive them and their employers. However, following a Court of Appeal judgement from April 2025, double cab pick-up vehicles will now be treated the same as company cars for the purposes of employees’ taxable benefits and employers’ capital allowances.
The ruling by the Court of Appeal followed a case in 2020 involving HMRC and Coca-Cola, where HMRC argued that two particular vehicles used by the drinks company were cars and not vans. The previous Government then tightened up tax rules to reflect the ruling in February 2024 but performed the U-turn seven days later – having been lobbied by representatives from various industries, such as the farming, construction and motor sector.
A Treasury spokesperson said recently: “The Government announced that HMRC will change its guidance on the tax treatment of double cap pick-ups to align with case law, reflecting the Court of Appeal’s judgement that multipurpose vehicles which are equally suited to carrying people and goods should be treated as cars. It is right that their tax takes into account the purpose for which they are primarily suited.”
The existing capital allowance rules will apply to vehicles purchased before those dates; the existing benefit in kind (BIK) rules will apply to employers that have purchased, ordered or leased a vehicle of this type before those dates until the earliest of disposal, lease expiry or 5 April 2029.
If you’ve got any questions concerning the tax treatment of vehicles within your business, call us on: 01892 513515.