19 Feb 2024
by Hazel Doonan

U-turn on classing double-cab pickups as company cars from July 2024

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HMRC has announced a U-turn on its decision to start classing most double-cab pickups as company cars for tax purposes, acknowledging that the plans would "inadvertently harm farmers and the economy.”

The new tax treatment had been due to take effect from 1 July 2024 but the U-turn means that double cab pickups will now continue to be treated as goods vehicles rather than cars, with businesses and individuals continuing to benefit from their historic tax treatment.

Under the current system, HMRC uses the VAT approach for double cab pickups, which is differentiated based on payload, with anything under one tonne classified as a car, and anything a tonne and over as a van.

New guidance withdrawn

Following the publication of the fresh HMRC guidance to treat double cab pickups as company cars, the Government says it has listened to stakeholders on the potential impacts of the change in tax treatment.

It acknowledged that the guidance could have an impact on businesses and individuals in a way that is not consistent with the Government’s wider aims to support businesses, including in agricultural industries.

The Government has made clear that it will be legislating to ensure that double cab pickup vehicles continue to be treated as goods vehicles for tax purposes.


Hazel Doonan

Hazel Doonan

Head of Crop Protection & Agronomy, AIC

Hazel is based at AIC Head Office, Peterborough and is responsible for management and coordination of the Crop Protection Sector.

Previous to her role with AIC Hazel was employed in the crop protection industry for 18 years as a BASIS qualified agronomist. She was also responsible for managing a regional agrochemical department with a national distributor.

[email protected]
01733 385251

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