Are plans for UK taxes on double-cab pick-up trucks really changing?
In this guide…
In February 2024, HMRC floated new company car taxes for double-cab pick-up trucks. One week later, they scrapped the plans. This development has stirred a significant amount of relief among company car drivers who had opted for double-cab pick-up trucks, as they were on the brink of witnessing a sharp increase in their benefit-in-kind (BIK) payments.
The initial proposal would have eradicated the flat-rate BIK tax for all commercial vehicles, moving to tax double-cab pick-up owners under the emissions-based system currently applied to passenger cars. Given the relatively high CO2 emissions of most pick-up trucks, owners would likely have faced the top 37% BIK rate. However, following backlash from the agricultural sector and the automotive industry, a decision was made to maintain the status quo.
To provide some much-needed clarity, we’ve penned this quick guide on whether pick-up trucks are still considered commercial vehicles in the eyes of the taxman, and offering three quality pick-up trucks you can from cars2buy today.
What are the Tax Laws for Commercial Pick-Up Trucks?
Under the current tax laws, pick-ups are treated as goods vehicles rather than cars. This distinction allows businesses and individuals to enjoy a more favourable tax treatment historically associated with commercial vehicles. Essentially, any pick-up truck that can carry a payload of over 1,000kg (or 1,045kg with a hardtop) qualifies as a commercial vehicle, thereby benefiting from a flat-rate tax system instead of an emissions-based one. This ‘loophole’ is particularly advantageous for fuel-heavy vehicles like pick-up trucks.
It’s worth noting that double-cab pick-ups with a payload under 1,000kg, such as the Ford Ranger Raptor, are categorised as passenger cars and are taxed based on their emissions.
Three Pick-Up Trucks that Make For Fantastic Commercial Vehicle Leases
Toyota Hilux
Renowned for its indestructible engine, the Toyota Hilux boasts a powerful 2.4L engine, upgradeable to a 2.8L for those seeking extra power. Standard features include a panoramic view monitor, dual-zone air conditioning, and remote diagnostic functionality, ensuring it’s not just tough but also tech-savvy. With a payload ranging from 1,055 to 1,085 kg, it scrapes into the commercial vehicle tax criteria.
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Isuzu D-Max
The Isuzu D-Max has evolved from its off-road specials of yesteryear to win accolades such as ‘Ute of the Year’ in Australia, thanks to its balance between workhorse capability and lifestyle adaptability. Powered by a 1.9-litre turbodiesel engine, the D-Max can tow up to 3.5 tonnes and boasts a payload of 1,710kg, proudly asserting its status as a commercial powerhouse.
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Volkswagen Amarok
Named after an Inuit deity taking the form of a wolf, the Volkswagen Amarok lives up to its namesake with a robust V6 engine and an interior that marries luxury with functionality. If interior comfort is a priority without compromising on payload capacity (1,112 to 1,154 kg), the Amarok stands out as a top choice.
Compare Volkswagen Amarok Deals
If you’re interested in a lease on a commercial pick-up truck that allows you to benefit from company car tax, cars2buy has the UK’s finest selection of quality lease deals from trusted dealerships. Our transparent service curates the best deals on the internet to allow you to navigate through the extensive range of pick-up options all in one place, saving you time on your search. From the rugged workhorses to the lifestyle-oriented adventurers, browse our van and truck lease deals today, and you may be driving a brand new commercial pick-up sooner than you think.