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April tax changes could triple costs for diesel pickup owners

Diesel Pickup Owners Face Steep Cost Hikes Under April Tax Changes

Under the new system, BiK rates will be based on emissions, with high-emission diesel models facing the largest increases. (Representational image: iStock)

DIESEL pickup truck owners could see their tax bills increase by up to £15,000 per year under changes set to take effect in April, following chancellor Rachel Reeves's announcement on Benefit-in-Kind (BiK) rates.

The reclassification of double cab pick-up trucks as cars will lead to higher emissions-based charges, affecting many businesses and tradespeople, reported GB News.


Currently, light commercial vehicles like double cab pick-ups with a one-tonne carrying capacity face a flat BiK tax rate of £3,960 for company drivers.

Under the new system, BiK rates will be based on emissions, with high-emission diesel models facing the largest increases.

Experts have warned that businesses relying on these vehicles may need to reconsider their fleets.

A motoring expert from Bumper told GB News, "The new regulations may lead businesses in industries like construction and farming to rethink their pickup vehicle fleets. While reliable, double cab pick-ups will face higher BiK taxes, which will lead to increased costs for employers due to added National Insurance contributions."

Some businesses are expected to switch to traditional vans, which still benefit from lower BiK rates, or transition to electric vehicles to reduce tax burdens.

According to HMRC, businesses that purchase, order, or lease a double cab pick-up before April 2025 can continue using the previous tax treatment until the vehicle is disposed of or the lease expires before April 5, 2029.

From April 6, double cab pick-ups will also be classified as cars for BiK and profit deductions under income tax. The Association of Chartered Certified Accountants stated that HMRC will no longer align its definition of "car" and "van" for tax purposes with VAT definitions.

Petrol and diesel company cars will continue to have BiK rates between 25 and 37 percent, based on factors including the vehicle’s P11D value, CO2 emissions, and the driver’s income tax band, GB News reported.

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