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The April 2025 Pickup Truck Tax Changes ExplainedThe April 2025 Pickup Truck Tax Changes Explained
In the last 10 years, the number of pickup trucks on UK roads has exploded.
Initially, they were usually only used by farmers, but in recent years the business use of Toyota Hiluxes, Ford Rangers and others has become far more popular.
The rise in pickup trucks being favoured by businesses is due to the favourable tax conditions they are subject to.
However, with the government's latest budget announcement, that is set to change. I take a look into what exactly these changes mean.
What are the Current Rules Around Pickup Trucks?
Until April 2025, pickup trucks with a load capacity of one tonne or more, are classified as commercial vehicles, this means lower BiK (company car tax) for the employee and more beneficial accounting for the business.
What is Changing in April 2025?
Double-cab pickup trucks will no longer be classified as commercial vehicles, but as cars. This means higher income tax for the employee and less tax write-offs for the business.
Company Car Tax on Pickup Trucks
A vehicle provided by an employer, that can be used for personal use, is subject to company car tax, as it is considered a part of their remuneration.
Before April 6th 2025, Pickup trucks are considered commercial vehicles, and as such are subject to a standard £3,960 taxable amount regardless of value or emissions.
After April 6th however, they will be taxed as cars, meaning their CO2 emissions will determine their BIK taxable rate: most will be much higher due to their large diesel engines.
Corporation Tax on Pickup Trucks
Before April 2025, where pickup trucks are still considered commercial vehicles, businesses can claim 100% of the cost back against corporation tax, the same as buying machinery or stock, this is called a Capital Allowance.
After April 2025, when double cab pickup trucks will be considered a personal car, they cannot be claimed as Capital Allowance, and will not offer as many tax savings as a commercial vehicle.
How Much More Company Car Tax Will You Pay After April 2025 on a Pickup?
Here’s an example of the kind of figures to expect, should you purchase a double cab pickup truck after April 6th 2025, vs what it would be before. Remember to take these figures as a rough guide, and do your own calculations before committing to a purchase or lease.
*P11D value will vary depending on specification
When Will The Pickup Truck Changes Take Effect?
The rule changes will come into force in early April 2025, but what if you’ve already got a pickup truck?
- The rules only apply to vehicles acquired after April 6th 2025
- Any pickup trucks owned or leased will be allowed to remain on the old system, until one of the following, whichever is first:
- The lease period ends
- The vehicle is disposed of
- 5th April 2029
How to Avoid the New Pickup Truck Changes
If you don’t want to pay the much higher company car tax on pickup trucks, there are a few things you can do:
- Only use the truck for business use - it will then not be subject to company car tax
- Choose a single cab truck - these will still be classified as a commercial vehicle
- Acquire a new truck before the April change.
Author - Joseph Law
Joseph has been writing about cars for over seven years and writing for Bumper for over two, blending his passion for automobiles with a talent for storytelling.
Joseph has written about engineering and cars for Autozilla, Komaspec, and several engineering manufacturers. When he's not writing or tinkering with one of his cars, Joseph dreams of owning an Alfa Romeo 33 Stradale.
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