Double cab pick-up tax changes 2025: What builders must know

Double cab pick-ups are a staple of the building trade. They help you move your team, tools, and materials in one go. But from 6 April 2025, new tax rules could make them a lot more expensive to run. If you're thinking about getting one, acting fast could save you a lot of money.

To break it all down, I spoke to Sam Coxhead of FMB Associate SJC Accountancy Services about what these changes mean for builders and their businesses.

Current tax situation

Right now, if a double cab pick-up has a payload of 1 tonne (1,000 kg) or more, it’s classed as a commercial vehicle. That means some big tax benefits:

Lower Benefit-in-Kind (BIK) Tax:
If you use the vehicle personally, you’re taxed at a fixed, low rate. For example, the Isuzu D-Max currently has a BIK charge of around £3,960 per year, meaning a 20% taxpayer only pays £792 per year.
Full Capital Allowances:
You can claim tax relief on the full cost of the vehicle in the year you buy it, which helps with cash flow.

What’s changing on 6 April 2025?

From this date, double cab pick-ups will be taxed as cars instead of commercial vehicles. Here’s what that means:

Higher Benefit-in-Kind Tax

BIK will no longer be fixed – instead, it will be based on the vehicle's list price and CO₂ emissions.

Sam explains:

‘Under the new rules, a vehicle like the Isuzu D-Max, with CO₂ emissions around 220g/km, would be taxed at 37%. This could mean an extra few thousand pounds per year for business owners.’

BIK example for the Isuzu D-Max

List Price: £37,500
BIK Rate: 37%
BIK Charge: £37,500 x 37% = £13,875 per year

How this affects different taxpayers:

Tax rate	Annual BIK tax cost
20% (Basic Rate)	£2,775 per year
40% (Higher Rate)	£5,550 per year
45% (Additional Rate)	£6,244 per year

Right now, a 20% taxpayer pays just £792 a year – so the increase is huge.

Reduced Capital Allowances

You’ll no longer be able to claim the full cost of the vehicle in year one. Instead, you’ll have to spread deductions over several years, which slows down tax relief and affects cash flow.

Higher employer costs – Class 1A National Insurance

Employers also need to factor in higher Class 1A National Insurance (NI) contributions.

Sam adds:

‘Class 1A NI is worked out at 15% of the taxable benefit. So, if the BIK charge for a pick-up jumps from £3,960 to £13,875, the NI cost for employers will shoot up too.’

For the Isuzu D-Max:

Current Class 1A NI: £3,960 x 15% = £594 per year

New Class 1A NI: £13,875 x 15% = £2,081 per year

That’s an extra £1,487 per year for employers.

Vehicles affected

These changes will hit most double cab pick-ups used by builders, including:

Isuzu D-Max
Ford Ranger
Toyota Hilux
Nissan Navara
Mitsubishi L200
Volkswagen Amarok

‘These vehicles are essential for tradespeople,’ says Sam. ‘Reclassifying them as cars makes no sense.’

How these tax changes will impact builders

For many builders, double cab pick-ups are essential for getting the job done – transporting teams, tools, and materials efficiently. But these tax changes will make them much more expensive to own and run. The new rules mean:

Higher running costs due to increased BIK tax.
Extra costs for employers from higher Class 1A NI contributions.
Less cash flow flexibility with reduced capital allowances.

Sam warns:

‘These changes aren’t a minor adjustment – they could have a serious financial impact on small businesses. Many builders might have to rethink their vehicle choices or find ways to absorb the extra costs.’

What you should do now

Buy before April 2025

If you’re thinking about getting a double cab pick-up, act fast. Buying before 6 April 2025 means you’ll still get the current tax benefits until 5 April 2029 (or until you sell the vehicle or end the lease).