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Thousands of motorists will face a 400% tax increase after HMRC changed the rules earlier this year. The tax authority reclassified double-cab pick-up trucks as cars, having previously been commercial vehicles.
The change was made to remove a tax advantage that allowed owners of these vehicles to pay a fixed Benefit-in-Kind rate. Pick-ups with payloads exceeding 1,000kg could qualify as commercial vehicles, meaning people could pay the same rates to drive a luxury pick-up truck as someone who drives a van. They are now in the highest tax bracket due to their exhaust emissions, weight, and aerodynamics. This new rule only applies to pick-ups with double cabs (seats behind the driver), not single cabs (no seats behind the driver). As an example, the owner of a Ford Ranger Wildtrak in the 40% tax rate will see their bill go from £1,608 to £8,322, an over 400% increase.
Many drivers are furious about the change, saying they have previously paid less for a three-litre diesel pick-up than they would for a one-litre Fiat 500.
Green Party representative Jenny Jones told The Telegraph: “It’s clear that some drivers were using the tax benefits intended for genuine businesses to subsidise their choice of the most polluting and inefficient diesel pickups.”
But those in the farming sector are worried about the new system. National Farmers’ Union deputy president David Exwood warned that farmers use double-cab pick-ups “every single day to go about their farming duties, and there are few vehicles that can be used as an alternative”.
He said that the change could create an “unaffordable tax burden” on farmers already facing financial pressures. The farming community argued that the double-cab pick-ups are essential in rural terrain, where alternative vehicles wouldn’t perform well.
The Government has put measures in place for the transition. Businesses that purchased or leased double-cab pickups before April 6 of this year can maintain the previous tax rates until disposal, lease expiry, or April 5, 2029.
Manufacturers have responded by launching lower-emission vehicles. Ford and Isuzu have both launched electric vehicles that would have lower tax rates.
