The UK government is making changes to the way double cab pickup trucks, a type of commercial vehicle are taxed, and there’s a lot of confusion about what’s actually happening. If you run a business and rely on a pickup truck for work, here’s everything you need to know – plus how to lock in tax savings before the rules change.
No Changes to VAT – Business as Usual
One of the biggest misconceptions floating around is that VAT rules are changing. That’s not the case. If you’re a VAT-registered business, you can still reclaim VAT on double cab pickups as usual. The way VAT works for pickups is completely unaffected by these changes.
BIK Tax – The Key Change from April 2025
Where things are changing is in Benefit-in-Kind (BIK) tax. Currently, double cab pickups with a payload of over one tonne are taxed as light commercial vehicles, making them far more tax-efficient than pickup truck lease deals when used privately.
What’s Changing?
📅 From 6th April 2025, all double cab pickups (over one tonne payload) will be classed as cars for BIK tax purposes – but only if they are used for private journeys.
So, what does this mean for you?
✔ If you use your pickup for business only – No change. BIK tax won’t apply.
✔ If you use your pickup for personal journeys – BIK tax will apply, based on CO2 emissions and P11D value (similar to a company car).
BIK Tax – How Much Will You Pay?
For those using their pickup truck privately, the BIK tax calculation is based on:
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The P11D value of the vehicle (list price including VAT, delivery, and extras).
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The CO2 emissions of the vehicle, which determines the percentage applied.
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Your income tax band (20%, 40%, or 45%).
Example BIK Calculation for a Pickup Truck Lease
A Ford Ranger with a P11D value of £40,000 and CO2 emissions of 200g/km would fall into a 37% tax band. If you’re in the 40% tax bracket, you’d pay:
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£40,000 x 37% = £14,800 taxable benefit
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£14,800 x 40% = £5,920 BIK tax per year
Previously, the fixed rate for commercial vehicles was much lower, making pickups a tax-efficient option. This change means a significant increase in tax costs for those using them privately, making pickup truck lease deals a more attractive option.
4-Year Grace Period – A Big Opportunity
If you buy or lease a pickup truck before 6th April 2025, you won’t be affected by the new tax rules until April 2029, even if you use it privately.
That’s four years of lower tax liability before the changes apply. If a pickup lease is on your radar, it’s worth exploring our pickup truck lease offers to avoid extra costs down the line.
Who Will Be Affected by the New Rules?
If you are a business owner, self-employed, or a fleet manager who uses a pickup truck lease, these changes could significantly impact you. Company pickups used for private use will be the most affected, while vehicles used solely for business purposes remain unchanged.
Benefits of Leasing a Pickup Truck
Leasing a pickup truck can provide numerous benefits for individuals and businesses alike. One of the primary advantages is the ability to drive a brand new pickup truck every few years, allowing you to enjoy the latest models and technological advancements. Additionally, leasing a pickup truck can offer lower monthly payments compared to financing a purchase, making it a more affordable option for many.
Leasing a pickup truck also provides the opportunity to drive a vehicle that is well-maintained and reliable, reducing the risk of breakdowns and costly repairs. Furthermore, leasing agreements often include warranties and maintenance packages, which can help to minimize downtime and reduce financial burdens.
Another benefit of leasing a pickup truck is the flexibility it offers. Leasing agreements can be tailored to suit individual needs, with options for varying contract lengths, mileage limits, and upfront payments. This flexibility makes leasing an attractive option for those who require a pickup truck for business or personal use.
How Pickup Leasing Works
Leasing a pickup truck is a straightforward process that involves several steps. Firstly, you will need to choose the pickup truck model that suits your needs, taking into account factors such as payload capacity, towing ability, and fuel efficiency.
Once you have selected your desired pickup truck, you will need to decide on the lease terms, including the contract length, mileage limit, and upfront payment. You will then need to apply for finance, which will involve a credit check and verification of your income and employment status.
Once your application is approved, you will be able to take delivery of your brand new pickup truck. Throughout the lease term, you will be required to make monthly payments, which will cover the depreciation of the vehicle, interest charges, and any applicable fees.
At the end of the lease term, you will have the option to return the pickup truck to the leasing company, potentially purchase the vehicle or extend the lease agreement.
Popular Pickup Truck Models
There are several popular pickup truck models available in the market, each offering unique features and benefits. Some of the most popular models include:
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Ford Ranger: Known for its ruggedness and reliability, the Ford Ranger is a popular choice among pickup truck enthusiasts.
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Toyota Hilux: With its impressive towing capacity and off-road capabilities, the Toyota Hilux is a favorite among those who require a pickup truck for heavy-duty tasks.
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Volkswagen Amarok: Offering a comfortable ride and impressive payload capacity, the Volkswagen Amarok is a popular choice among those who require a pickup truck for business or personal use.
These are just a few examples of the many pickup truck models available in the market. When choosing a pickup truck, it’s essential to consider factors such as payload capacity, towing ability, and fuel efficiency to ensure that you select a model that meets your needs.
How to Stay Ahead of the Tax Changes
With these changes approaching, businesses that need a pickup lease for both work and personal use should consider acting before April 2025.
Best Pickup Lease Deals to Consider
We’ve got some great business lease deals on brand new pickup trucks that lock in the current tax benefits for four more years, including attractive pickup leasing deals:
🚙 Ford Ranger Lease Deals – The UK’s best-selling pickup lease, perfect for work and play.
🔋 Maxus T90 EV Lease Deals – The UK’s first fully electric pickup, ideal for businesses looking to cut fuel type costs and emissions.
🛻 Toyota Hilux Lease Deals – A brand new van, built to handle the toughest jobs on uneven terrain.
FAQs – Common Questions Answered
Yes, if you use the pickup truck privately, you’ll be taxed under the new rules. If it’s strictly for business, you won’t be affected.
Yes, capital allowances remain unchanged. You can still claim tax relief on the cost of a lease vehicle.
If you can prove 100% business use, there will be no BIK tax to pay under the new rules.
What’s the Best Move for You?
If your business relies on double cab pickups and you also use one privately, now is the time to act. Whether you’re looking to secure a pickup before the tax changes or explore other leasing deals, we’re here to help.
Lease a Pickup Truck Today
Finding the best pickup lease deals is essential to managing your business costs effectively. With comprehensive range options from leading manufacturers, we provide great range selections suited for family life and contract hire agreements.
Leasing a modern pickup allows you to enjoy luxury and comfort features typically found in high-end cars, such as cruise control, air conditioning, and advanced technology like Sat Nav and Bluetooth.
Conclusion
With these upcoming tax changes, securing a pickup lease now can save you thousands in tax over the next four years. If you need a brand new pickup truck for business, whether for road tax savings, cruise control features, or leather seats, now is the time to act!
Get in Touch
Need more info on how these changes affect you? Want to discuss your best options for leasing your dream pickup before April 2025? Reach out to us today, or check out our latest lease deals.