HMRC update: changes for double-cab pick-ups
19 February 2024
EDIT: HMRC update – 19.02.2023
The government has listened to the views of farmers and the motoring industry and reversed the double-cab pick-up decision below.
We recently shared the HMRC’s update to double-cab pick-ups and their commercial status. This update was withdrawn as of Monday 19th February 2024.
For full details on this withdrawal please see HMRC’s website
https://www.gov.uk/government/news/update-on-hmrc-double-cab-pick-up-guidance
HMRC update – 14.02.2024
HMRC have recently issued new guidance in its Employment Income Manual for double cab pick-ups. If you own one, that you use for both business and commercial purposes, or you’re planning to get one – you’ll need to be aware of these changes.
As of 1 July 2024, HMRC have confirmed that most double-cab pick-ups will be losing their commercial vehicle status and will be classified differently for benefit in kind (BIK) purposes.
Previously, a double-cab pick-up with a payload of more than a tonne has been considered a van, thereby attracting an advantageous benefit in kind status for businesses and their owners. Moving forward as of July 2024, the tax body will re-assess the classification of each vehicle of this type. It is likely that most, if not all, double cab pick-ups will be classified as cars when calculating the benefit change.
Under these changes, both businesses and individuals will see pick-ups become considerably more expensive for benefit in kind purposes.
Those that already own, lease, or have ordered a double-cab pickup before 1 July 2024 will be unaffected by this change. However, current owners/users will, be subject to the existing BIK regime until their lease expires, the vehicle is sold, or 5 April 2028 (if earlier).
For capital allowances purposes, HMRC will consider double-cab pick-ups as cars. This will affect capital allowance claims, as they will be restricted from 100% relief in the year of purchase to 6% annually.
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