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Car tax update sees a 400% hike in costs for some


Newsletter issue – September 2025

Since April 2025, HMRC has reclassified double cab pick-up trucks as cars rather than commercial vehicles. Previously, pick-ups with payloads over 1,000kg were taxed as commercial vehicles, allowing drivers to pay a fixed Benefit-in-Kind (BiK) rate - regardless of luxury level. These vehicles will now be taxed based on CO2 emissions, placing many in the highest tax brackets due to their size and poor aerodynamics.

Only double cab models with rear seats are impacted; single cab commercial variants remain unaffected. For example: a Ford Ranger Wildtrak driver in the 40% tax bracket will see annual BiK tax rise from £1,608 to £8,322. This represents a 400%+ increase for many motorists.

The change was made to address disparities, such as drivers paying more tax for a small city car than a three-litre diesel high-emission pickup. It is believed by some that drivers were using the tax benefits intended for genuine businesses to subsidise their choice of the most polluting and inefficient diesel pickups.

The update has sparked discussion about the equity and logic of emissions-based taxation for multi-purpose vehicles. The National Farmers' Union has warned that farmers rely on double cab pick-ups every day to go about their farming duties as there are few alternative vehicles. They are not being used as luxury items but will now impose an 'unaffordable tax burden' on already struggling farmers.

 

 

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