From April 2025, double cab pick-ups will no longer be treated as commercial vehicles for tax purposes. Instead, they’ll fall under the same tax rules as passenger cars, which could have a big impact on your tax bill.
If you’re running a business or driving a pick-up for work, these changes are something you can’t afford to ignore. But don’t worry – we’ll break it all down for you and show you how to make the most of the current rules before it’s too late.
Key Points:
- What Taxes Are Changing For Pick-Ups?
- Who Does This Affect?
- What Can You Do About It?
- Why Rent Your Pick-Up from Us?
- Don’t Wait – Act Now
What Taxes Are Changing For Pick-Ups?
Right now, double cab pick-ups benefit from tax treatment as commercial vehicles. This means:
- Benefit-in-Kind (BIK): A flat rate of £3,960 annually for personal use.
- Capital Allowances (CA): Businesses can claim tax relief under the more generous commercial vehicle rules, such as the Annual Investment Allowance (AIA).
But starting 6th April 2025, double cab pick-ups will be taxed like passenger cars. Here’s what that means:
- BIK taxation: Instead of the flat rate, BIK will shift to a percentage of the vehicle’s list price based on CO₂ emissions. High-emission vehicles could see a huge increase in tax bills.
- Capital Allowances: These vehicles will no longer qualify for the AIA. Tax relief will instead align with car rules, which offer much lower deductions over time.
Simply put, the cost of owning or leasing a double cab pick-up for business or personal use is about to go up – a lot.
Get ahead of the tax changes and rent a Hilux pick-up from First Step today!
Who Does This Affect?
These changes will impact both businesses and individuals:
- For businesses: Higher tax costs could eat into your profits, especially if you rely on pick-ups for work. It’ll also reduce the tax deductions you can claim.
- For employees: If you drive a double cab pick-up as a company car, your income tax bill could jump significantly.
- For everyone else: Leasing, buying, or running a pick-up will simply cost more due to the new rules.
However, single and extended cab pick-ups will stay classified as commercial vehicles, so they won’t be affected.
What Can You Do About It?
The good news is there’s still time to act. Here are some smart steps to take before the new rules kick in:
1. Lock in the Current Tax Benefits
If you’re thinking about getting a double cab pick-up, do it before April 2025. Vehicles purchased, leased, or ordered before this deadline will continue to benefit from the current tax treatment until the earlier of:
- The vehicle’s disposal
- The lease’s expiry
- 5th April 2029
This gives you a solid four years on the current rates, which could save you thousands.
2. Consider Single or Extended Cab Pick-Ups
If you’re buying for business use and don’t need the extra seating, switching to a single or extended cab pick-up could keep you within the commercial vehicle classification. This means lower tax bills and better tax relief for your business.
3. Think About Leasing
Leasing a pick-up now can also lock in current rates, helping you save more money. Plus, with the right lease agreement, you can avoid the steep costs of ownership after the rule change.
Check out our lease deals on Hilux pick-ups – get ahead of April’s tax changes and save thousands!
Why Rent Your Pick-Up from Us?
If you’re not ready to commit to buying a pick-up before the deadline, renting could be the perfect solution. Here’s why:
- Flexibility: Avoid the upfront cost of purchasing and keep your options open as tax rules change.
- Cost-effective: Enjoy the benefits of a double cab pick-up without the long-term tax implications.
- Hassle-free: We deliver your new truck at a time and place that works for you, and include the first year of road tax, so you can start driving right away.
By renting now, you can take advantage of the current tax benefits and transition smoothly into the new rules without breaking the bank.
Don’t Wait – Act Now
April 2025 might feel like it’s a way off, but it’ll be here before you know it. The sooner you act, the better positioned you’ll be to weather these tax changes.
Whether you’re looking to buy, lease, or rent a pick-up, now’s the time to make your move. Don’t let the new rules catch you off guard – contact us today to explore your options and secure your pick-up while the current tax rules still apply.
Ready to get started? Get in touch now and make the most of the tax benefits before it’s too late!