Tax hike for pick-ups reversed by UK government

One week on from proposed new company car taxes for double-cab pick-up trucks, HMRC has scrapped the plans.

Company car drivers who bought or leased a double-cab pick-up truck were due to see the benefit-in-kind (BIK) payments skyrocket under proposals announced on 12 February, but in a dramatic U-turn after criticism from farmers and the motor industry, it has reversed its decision.

HMRC had announced that it would no longer consider double-cab pick-up trucks as commercial vehicles, as their second row of seats allowed them to have a dual function as a personal vehicle.

The change to company car tax BIK for double-cab pick-up trucks was due to be implemented on all new purchases or leases from 1 July 2024, and would have meant owners no longer paid a flat rate of BIK for all commercial vehicles and instead be taxed using the emissions-based system used for passenger cars.