VAT & ROAD TAX STILL UNCHANGED
What's changed:
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As of April 2025, double and extended cab pick-ups are now treated as company cars for:
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Benefit-in-Kind (BIK): Taxed based on CO₂ emissions (3%–37% range)
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Capital Allowances (CA): No longer “plant & machinery”; allowances now CO₂-based (6%, 18%, or 100% for EVs)
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What hasn’t changed:
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Road Tax (VED) remains at £345/year
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VAT still fully reclaimable if:
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Vehicle has over 1-tonne payload
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Business is VAT-registered and makes fully taxable supplies
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Transitional relief applies if:
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The vehicle was ordered, leased, or purchased before 6 April 2025
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These vehicles keep the older, more favorable BIK/CA treatment until 5 April 2029, disposal, or lease expiry
Important note:
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Single cab pick-ups are not affected and still count as commercial vehicles for all tax purposes
Why the change?
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Based on a Court of Appeal ruling that dual-purpose pick-ups aren't primarily for goods transport, HMRC reclassified them
If you require any further assistance regarding the Changes, please contact us, 01334 657400 or fifeisuzu@hotmail.com