HMRC has updated its rules on how Double-Cab Pickup (DCPU) vehicles are classified for tax purposes, affecting car benefits, capital allowances, and business deductions.

What’s changing?

Until now, HMRC classified DCPUs with a payload of 1 tonne or more as goods vehicles, which came with better tax benefits. However, from April 2025 (1st for companies, 6th for individuals), this rule will change. Instead of using the payload test, HMRC will classify DCPUs based on their original purpose when built. Since DCPUs are designed for both passengers and cargo, they will now be treated as cars, which means higher tax costs.

What does this mean for you?

If you’re thinking about buying a Double-Cab Pickup, it’s worth acting before April 2025 to benefit from the current tax rules:

• For Company Vehicles: Ordering before 1 April 2025 can lock in better tax treatment for capital allowances.
• For Individuals: Ordering before 6 April 2025 can secure the current benefit-in-kind tax advantages.
• Final Payment Deadline: The beneficial capital allowances will apply as long as you commit to the purchase before 1 October 2025.

If a DCPU is part of your business plans, consider making your purchase sooner rather than later to take advantage of the current tax rules.