Tax Changes for Double Cab Pick-Ups: The Countdown is On
The tax treatment of double cab pick-up vehicles (DCPUs) is about to change, and businesses need to act fast. The recent Budget announcements have confirmed that from April 2025, most DCPUs will be classified as cars for tax purposes.
This shift could significantly impact tax liabilities, including capital allowances, benefits in kind, and deductions from business profits.
Following years of uncertainty, including a 2020 Court of Appeal judgment and a subsequent government U-turn, clarity has now been provided.
From 1 April 2025 for Corporation Tax and 6 April 2025 for Income Tax, DCPUs with a payload of one tonne or more will be treated as cars rather than goods vehicles.
Consequently businesses could face higher tax costs, including National Insurance contributions. Employees using these vehicles could also see changes to their tax obligations from increased benefit in kind charges.
However, there’s still a window of opportunity!
Expenditure on DCPUs before April 2025 will continue to benefit from the existing capital allowances treatment.
Employers who have purchased, leased, or ordered a qualifying DCPU before 6 April 2025 can continue using the previous tax treatment until the earlier of disposal, lease expiry, or 5 April 2029.
It’s important to note that DCPUs with a payload of less than one tonne remain unaffected by these changes and will continue to be classed as cars, as they always have been.
Businesses should start reviewing their vehicle plans now to make the most of the current tax rules before the deadline arrives.
How Brisan Can Help
Understanding these changes and their impact on your business can be complex, but Brisan is here to help.
Our team can guide you through the new tax rules, assess how they will affect your financial planning, and help forecast affordability if you’re considering changing your company vehicle.
Get in touch with us today to ensure you fully understand your tax obligations and make informed decisions for your business.
