Pick-Up Trucks Lose Company Car Tax Advantage

Well, sort of. Not that we’re suggesting you, a suburban commuter or family car buyer, were eyeing up a pick-up truck purely for tax benefits—of course not. But if you were, no judgement. However, from April 2025, double-cab pick-ups will be taxed as standard passenger vehicles, meaning much higher Benefit-in-Kind (BIK) payments if used as a company car.

How Does This Affect Pick-Up Owners?

Take the Ford Ranger, for example. Under current rules, commercial vehicles like pick-ups have a fixed BIK rate of £3,960, regardless of their emissions or value. But from April, a £50,000 double-cab Ranger will be taxed at 37% BIK, meaning:

• £3,550 per year for a 20% taxpayer
• Over £7,000 per year for a 40% taxpayer

Does This Apply to All Pick-Ups?

Initially, single-cab and extended-cab pick-ups were excluded, as HMRC classified them as commercial vehicles. However, on 20 February 2025, the Government clarified that from 6 April 2025, pick-ups with extended, extra, king, or super cabs will also be taxed as personal vehicles. The reasoning? According to the Government, these models aren’t fundamentally unsuitable for private use—so they’ll now be taxed accordingly.