Hidden in the small print of the October 2024 Budget was a change in the tax treatment of Double Cab Pick Ups that can carry a payload of more than 1 tonne.

From April 1 next year for Corporation Tax & VAT purposes and from April 6 next year for Income Tax purposes these vehicles will be treated as cars. This means:

• Businesses will from April 1 next year not be able to claim a 100% Capital Allowance on the purchase of these vehicles.
• VAT Registered organisations will from April 1 next year not be able to reclaim the VAT on the purchase cost of these vehicles.
• Individuals who receive a double cab pick up as a company car will from April 6 next year pay Benefit In Kind charges calculated on the same basis as cars not commercial vehicles. This will dramatically increase the amount they pay compared to current charges. If the vehicle is purchased, leased, or ordered before April 6 next year the employee may benefit from the current (much lower) BIK charges until the vehicle is sold, the lease expires, or until April 5 2029, whichever date be earliest.

So there will be a rush to obtain or order new Double Cab Pick Ups before April next year. Currently supply is good for Ford Rangers, patchy for Isuzu D-Max and very difficult for new model Toyota Hilux. However once the surge of demand arrives, which we think will be very soon, we expect supply to quickly tighten for all makes. The concession that for BIK the current arrangements will apply for vehicles ORDERED by April 5 next year will help, but this does not apply to the Capital Allowance and VAT situations.

So the message is clear, act quickly to ensure you take advantage of current rules before the April 2025 changes. If you want to discuss further please call, advice is free!