Asger Risom
Work trucks reclassified as cars in costly tax shake-up
Thousands of motorists are discovering that a quiet rule change has reshaped the cost of running a work vehicle. What was once seen as a practical, tax-efficient choice is now leaving some drivers with sharply higher bills.
The impact is being felt most by those who rely on their vehicles for both business and family life.
Rule change explained
For years, double-cab pick-up trucks were treated as vans for tax purposes, making them significantly cheaper to run as company vehicles. That changed in April 2025, when the Government reclassified these vehicles as cars for certain tax rules following a Court of Appeal ruling.
The update applies to any double-cab pick-up ordered or registered on or after April 6, 2025. Tradespeople, farmers, delivery workers and small business owners are among those affected.
Under the old system, vans were subject to a flat benefit-in-kind rate of £4,020. A basic-rate taxpayer paid £804 a year, while higher-rate taxpayers paid £1,608.
Bills soar
Once classed as cars, the tax calculation shifts to a percentage of the vehicle’s list price, based largely on emissions. Because double-cab pick-ups are heavier and emit more CO₂, the increase can be dramatic.
Using a Ford Ranger Wildtrak with a list price of about £48,000 as an example, the taxable benefit rises from £4,020 to £17,760 under the new rules.
That pushes the annual tax bill for a basic-rate taxpayer from £804 to £3,552. For higher-rate taxpayers, the charge jumps from £1,608 to more than £7,100, an increase of over £5,000 a year.
Fuel adds pressure
Fuel benefits have also risen steeply. Under the old van rules, the taxable fuel benefit was around £769. Now, vehicles taxed as cars use a standard figure of roughly £28,200, multiplied by the emissions percentage, according to reporting by The Sun.
For the Ranger Wildtrak, that results in a taxable fuel benefit of £10,434, leaving a basic-rate taxpayer with a fuel tax bill of more than £2,000.
Industry concern
A Treasury spokesperson said: “Following a judgement by the Court of Appeal, Double Cab Pick-ups should now be treated as cars for certain tax purposes, and we have put in place rules to help businesses transition to the new system.”
Industry figures warn the burden will fall hardest on smaller firms. Matt de Prez, editor of Fleet News, said trades such as plumbing would feel the impact because “drivers often use work vans for personal use too”.
Sarah Coles, head of personal finance at Hargreaves Lansdown, added: “Where companies have flexibility to change their fleet, it could restrict choice. But where they are stuck with a particular model for a period it could quadruple their tax bill.”
