How should my employee’s double cab pickup truck be taxed?

From 6th April 2025, HMRC changed how double cab pickups are classified for tax purposes. This could have a significant impact on benefit-in-kind (BIK) charges for small business owners who provide or drive these vehicles. 

How were double cab pickups treated before April 2025? 

Double cab pickups with a payload of at least one tonne (i.e. the amount of load the vehicle can safely carry) were treated as vans for the purposes of the BIK tax rules until 5th April 2025. This meant that where employees had private use of the double cab pickup, they were taxed on a set value of £4,020 per year as a BIK. This was reduced if they shared the use of the pickup with other employees or did not have constant use of it. 

If the employee was also provided with fuel for private use, they were taxed on a flat value of £769 per year. Again, this could be reduced if they shared the pickup or did not have constant use of it. 

Double cab pickups with a payload of less than one tonne were treated as cars. 

How are double cab pickups treated from 6th April 2025? 

From 6th April 2025, all double cab pickups are classified as cars for BIK and capital allowance purposes. 

However, double cab pickups with a payload of one tonne or more remain under the category of vans for VAT purposes. 

To calculate an employee’s BIK taxable value for a car, the list price of the car (plus any accessories added to it) is multiplied by the ‘appropriate percentage’. The percentage is usually based on the CO2 emissions figure for that car. 

If the car is provided through a salary sacrifice arrangement – where the employee gives up an amount of salary which is then put towards paying the lease cost of the car – the BIK is calculated based on the higher of: 

• the list price of the car multiplied by the appropriate percentage, and  
• the amount of salary they sacrificed. 

This means it is generally no longer tax efficient to offer a car under a salary sacrifice arrangement, other than electric vehicles which are not caught by this rule. 

What if the double cab pickup was ordered before April 2025 but it arrived after April 2025? 

HMRC has put transitional rules in place. Under the transitional rules, if a double cab pickup was purchased, leased, or ordered before 6 April 2025, it can still be treated as a van for BIK purposes until the earlier of the: 

• disposal of the vehicle, 
• end of the lease, or 
• 5th April 2029.

If you transfer the double cab pickup from one employee to another while the vehicle is under this transitional arrangement, it will continue to be taxed as a van until the earlier of the disposal, lease expiry or 5th April 2029. 

What is the difference in tax cost between a double cab pickup taxed as a van and as a car? 

The example below is for a Ford Ranger Double Cab Wildtrak Auto 4x4 with a list price of £49,549, diesel engine and CO2 emissions of 230 g/km 

Using HMRC BIK figures for 2025/2026: 

	BIK value	Tax @ 20%	Tax @ 40%	Tax @ 45%
Van	£4,020	£804	£1,608	£1,809
Set rate
Car	£18,333	£3,667	£7,333	£8,250
£49,549 x 37%

As you can see, the difference in tax payable is enormous once the vehicle has to be treated as a car. 

You can access the HMRC company car calculator here. 

What about electric pickups? 

There are currently very few fully electric double cab pickups available in the UK, but a fully electric car attracts a far lower BIK percentage compared to a petrol or diesel vehicle (and can still be offered under salary sacrifice tax efficiently if desired).  BIK tax would be significantly reduced in a comparable electric vehicle. 

For instance, a Maxus T90EV double cab pickup with a list price of £59,994 and 0mg/km emissions has a percentage of only 3% in 2025/2026:  

	BIK value	Tax @ 20%	Tax @ 40%	Tax @ 45%
Electric pickup	£1,800	£360	£720	£810
£59,994 x 3%
Diesel pickup	£18,333	£3,667	£7,333	£8,250
£49,549 x 37%

BIK rates for electric vehicles are set to rise year on year but are expected to stay well below petrol and diesel vehicles’ rates for quite some time. Electric models are therefore a tax efficient alternative if providing double cab pickups remains important to your employees and your business. 

How TaxAssist Accountant can help  

If you have a double cab pick-up, or your company offers them to employees as a BIK, speak to one of our team, who can advise you on the implications of the changing rules. Call us today on 020 3859 0575 or use our online contact form to arrange a free initial consultation. 

First published 24 Jul 2025

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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