Changes to BIK and VAT rules

DOUBLE CAB PICKUP TRUCKS – NO CHANGE TO RECLAIMING VAT. There has been some confusion regarding the upcoming changes to double cab pickup truck tax regulations. To clarify: NO CHANGE TO VAT RULES: There is no change to the VAT rules on all pickup trucks. VAT can still be reclaimed as previously. BIK BENEFIT-IN-KIND CHANGES: The change only affects the Benefit in Kind (BIK) tax for double cab pickup trucks which are used for some element of private purposes. Zero private use equals no change. From 6th April 2025, double cab pickup trucks with a payload over one tonne will be classified as cars for BIK tax purposes. This means BIK is applied BUT only for those vehicles which are used for some private use. 3-YEAR GRACE PERIOD: If you buy or lease a pickup truck before 6th April 2025, the new BIK rules will not apply for 3 years (until 6th April 2028) even if you do use it for private use. NO IMPACT IF NO PRIVATE USE: If a double cab pickup truck is used solely for business, there are no changes to the BIK rules and you will not pay the tax.

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