HMRC quietly announced on 12 February 2024 that it would drastically change the vehicle classification of double cab pick-ups. Under the new rules double-cab vehicles that could carry a payload over 1,000 kg would no longer be classed as a goods vehicle, and instead be considered a car.

This would have had a significant tax impact, with businesses no longer being able to reclaim VAT on the purchase of the double cab pick-ups, and individuals seeing a sharp hike in their benefit in kind, for some up to 5 times what they would have been paying.

However, just one week later, HMRC has made a U-turn, confirming that proposed changes will, in fact, no longer be introduced following feedback from the motoring and agricultural industries.  

Double cab pick-ups with a payload of less than 1,000 kg will still be classed as a car as they always have been, and remain unchanged by the recent announcements.

The Government has announced that they will consult on draft legislation to ensure that it achieves the desired outcomes before introducing it in the next available Finance Bill.

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