Big Tax Hike for Pickups in 2025 – Here’s How to Beat It

If you drive a double cab pickup for work, there’s an important change coming that could significantly increase your costs.

From April 2025, HMRC is changing the tax rules, and it could mean you end up paying a lot more to run your Pickup truck.

However, there is still time to take action and avoid the financial hit.

Here’s what’s changing and how you can stay ahead of the tax hike.

What’s Changing?

Currently, if your pickup has a payload over one tonne, it is classified as a commercial vehicle. 

This means:

• Lower Benefit-in-Kind (BIK) tax – currently a flat rate of £3,960 per year
• Better capital allowances – allowing businesses to deduct more from their tax bill

From April 2025, these rules will change. 

HMRC has announced that most double cab pickups will be reclassified as passenger cars, leading to:

• Higher BIK tax—taxed like a company car, based on CO₂ emissions (which could result in a much higher tax bill)
• Reduced tax relief for businesses—capital allowances will follow car rules, meaning less money back.

What This Means for You

If you drive a pickup for work, whether owned personally or through a business, these changes could have a major financial impact.

• Own your pickup through your business? Your tax benefits will be reduced.
• Drive a company pickup? Your BIK tax is set to increase.
• Lease your truck? It could become more expensive to run.

How to Avoid Paying More

The good news is that you can still secure the current tax benefits if you act before April 2025.

HMRC has confirmed that pickups bought, leased, or ordered before April 2025 will still be taxed under the existing rules. 

This protection will remain in place until April 2029 or until the truck is sold, whichever comes first.

This means you can lock in today’s lower tax rates for up to four more years, but only if you act before the deadline.

Why Now is the Time to Upgrade

If you have been considering upgrading your Pick-up, this is the ideal time to do so.

Both Isuzu and KGM Musso pickups still qualify for the current commercial vehicle tax treatment if ordered before April 2025.

By acting now, you can:

• Secure lower tax bills for years to come
• Maximise tax relief if purchasing through a business
• Avoid the additional costs associated with the new car tax rules

Delaying could mean being subject to higher tax rates, reduced benefits, and increased running costs.

View Isuzu Pickup Offers

View KGM Musso Offer

Next Steps—Don’t Wait Until It’s Too Late

This is not a change that may or may not happen—HMRC has confirmed the new tax rules, and they will impact your costs unless you take action.

• Review your current pickup—is it time to upgrade?
• Consult a tax advisor if your truck is part of your business fleet.
• If considering a new pickup, order before April 2025 to lock in the tax benefits.

At JT Hughes, we are an official Isuzu and KGM franchise in Shropshire and Mid Wales. Our team is here to help you find the right pickup before the tax increase takes effect.

For more information or to discuss your options, get in touch today.