How Are Double Cab Pickups Taxed as Company Vehicles?

Since 6 April 2025, most double cab pickups are treated as cars rather than vans for company vehicle (benefit-in-kind) tax. That usually means a higher tax bill for an employee who has one for private use. Pickups bought, leased or ordered before that date can stay on the old van treatment for a limited time.

What changed for double cab pickups?

Before April 2025, a double cab pickup with a payload of one tonne or more was treated as a van for benefit-in-kind tax. Van benefit is a flat yearly figure, which was often much lower than the charge on a car.

HMRC no longer uses the payload test for this. A vehicle is now classed by what it is mainly suited to. Because a double cab carries passengers as readily as goods, HMRC expects most double cab pickups to be classed as cars. The HMRC guidance on double cab pickups sets this out.

What does being taxed as a car mean?

Company car tax is based on the vehicle's list price and its CO2 emissions. Pickups tend to have high list prices and high emissions, so the taxable benefit is usually well above the old van figure. The employer's National Insurance bill on the benefit rises too.

The change also affects how a business claims capital allowances on a double cab pickup. Your accountant can tell you how that applies to you.

Who can still use the old van rules?

There is a transitional arrangement. If the employer bought, leased or ordered the double cab pickup before 6 April 2025, the old van treatment can continue until the earliest of:

• the vehicle being sold or otherwise disposed of

• the lease ending

• 5 April 2029

Does this affect a used double cab pickup you buy now?

If you buy one privately for your own use, benefit-in-kind tax does not come into it. If a company buys one now and an employee or director uses it privately, expect it to be taxed as a car. The transitional arrangement belongs to the employer who had the vehicle before April 2025. It does not pass to a new owner.

Tax is one cost among several. Check with your accountant before you choose a work vehicle on tax grounds.

Common questions

Are single cab pickups and vans affected?

The change is aimed at double cabs. A vehicle built mainly to carry goods, such as a panel van, is still treated as a van. Borderline vehicles are judged on what they are mainly suited to.

Is there any tax if the pickup is only used for work?

Benefit-in-kind tax is charged on private use. The rules on what counts as private use are different for cars and vans, so get advice on your own circumstances.

Does this change road tax on a pickup?

No. This is about company vehicle tax. Vehicle tax (VED) is set separately. You can check the rate for any vehicle on the GOV.UK rate tables.

Looking for a work vehicle in Barnsley?

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This guide is general information, not legal or financial advice. Updated October 2026.