HMRC Backtrack on Double Cab Pickup Vans

Effective July 1, 2024, a significant change impacting double cab vans was supposed to take effect. HMRC planned to reclassify most double cab vans as cars for benefit-in-kind (BIK) purposes, significantly increasing tax bills for businesses offering them as company vehicles! However, HMRC has scrapped this new ruling so that double cab pickups will remain as vans.

Double-Cab Van

Why the change? 

HMRC argued the previous classification didn't reflect how these vehicles are used, favouring passenger transport over cargo.

Why did HMRC U-turn? HMRC removed the online guidance on the new ruling on double cab cars and uploaded a news story, which can be found here. The story details how HMRC decided not to go through with the ruling because they've listened to people who would be burdened by the higher tax, such as farmers, and decided that the ruling was inconsistent with the government's wider aim to support businesses.

Stay Informed

Short and Sons Accountants are always focused on staying updated on changes affecting their clients. HMRC's backtracking on this ruling is a big win for farmers and those working in the motoring industry, who rely on double cab vans to transport goods. The BIK tax increase could have easily cost a business several thousand pounds yearly. Look at our other articles on our "Tax Tips" page on our website, and watch for future articles that are relevant to you.