UK: HMRC BIK treatment of double cab pickups

HMRC have announced that new rules are coming into effect on 1 July 2024 in relation to the tax treatment of double cab pickups provided to employees.

From 1 July 2024, HMRC will class “most if not all” double cab pickups as cars rather than vans for employment tax purposes.  This will result in higher benefit in kind (BIK) tax charges being applied on double cab pickups. 

Transitional arrangements will apply for employers who have purchased, leased or ordered a double cab pickup before 1 July 2024.   These vehicles can continue to be classed as vans under the pre 1 July 2024 tax treatment until the earlier of either 1) disposal, 2) lease expiry or 3) 5 April 2028.

The rules prior to 1 July 2024 remain unchanged.

HMRC have not amended the definition of a van for VAT purposes being a vehicle with a payload over one tonne.

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