Double-Cab Pickups & VAT in 2025: You Can Still Reclaim It (Here’s How)

VAT on Double-Cab Pickups: Still Reclaimable.

There’s confusion about VAT on pickup trucks, but you can still claim VAT back.

For VAT on double-cab pickups, current HMRC guidance still allows recovery where the vehicle qualifies as a commercial vehicle and is used for business.

In this guide, we cut through 2025 headlines with plain-English criteria, the evidence HMRC expects (logs, invoices, job sheets), and quick examples for builders in Telford, farmers near Welshpool, and teams around Shrewsbury and Newtown.

Result: cleaner records, fair apportionment where there’s private use, fewer HMRC queries, and stronger cash flow.

Important: This is general guidance, not tax advice. Correct as of 1st September 2025.

First, what actually counts for VAT?

For VAT, the big question is whether your vehicle is a “car”. Vehicles that are not cars include those with a payload of one tonne (1,000 kg) or more — which is why many double-cab pickups qualify as commercial for VAT.

Quick pointers

• Payload = gross vehicle (design) weight − unoccupied kerb weight. Check the VIN plate or manufacturer spec.

• Under 1,000 kg payload → likely a car for VAT, so purchase VAT is normally blocked (unless used exclusively for business and not available for private use).

• 1,000 kg or more → not a car for VAT; recover input VAT under normal rules to the extent of business use.

• Heavy accessories matter: HMRC attributes 45 kg to a hard top; that can tip a 1,010 kg payload down to 965 kg — flipping the status to a car. Check before fitting.

Heads-up: if post-purchase mods mean the vehicle now meets the VAT definition of a car (for example, payload slips under one tonne), HMRC says you must account for output VAT at the point of conversion.

Can you reclaim VAT on a pickup?

Short answer: Yes, if it’s not a VAT “car” and it’s used for your business. If it is a VAT car, purchase VAT is blocked unless used exclusively for business and not available for private use. (Taxis, self-drive hire, and driving instruction are specific exceptions.)

Typical scenarios

• 100% business use (not a VAT car): reclaim 100% of VAT.

• Mixed business/private (not a VAT car): either apportion the input VAT now or reclaim in full and account for output VAT on private use each return using a fair & reasonable method. Pick one approach and apply it consistently.

• Counts as a VAT car: purchase VAT blocked unless exclusively business and not available for private use. Repairs/maintenance VAT can still be reclaimed to the extent of business use.

What changed in 2025 — and what didn’t

Timeline (plain English)

• 12 Feb 2024: HMRC said most double-cabs would be treated as cars for BIK/capital allowances (from 1 July 2024).

• 19 Feb 2024: Government withdrew that update.

• From 6 Apr 2025: For BIK, HMRC now uses a construction/suitability test (not the 1-tonne rule). Most double-cabs are expected to be “cars” for BIK. Transitional relief applies if purchased/leased/ordered before 6 Apr 2025 — until disposal/lease expiry or 5 Apr 2029. HMRC states the VAT input-tax position is unchanged.

Bottom line: BIK changed on 6 April 2025; VAT did not. Keep VAT and BIK as separate decisions.

The evidence HMRC expects (keep this simple)

Have these on file before you claim:

• VAT invoice in the business name.

• Payload/spec proof (order, brochure, or VIN-plate photo).

• Journey records (mileage log, job sheets, diary entries). And a short vehicle-use policy if claiming no private use. (HMRC’s approach is “fair & reasonable” and consistent.)

How to claim on mixed use (two clean routes)

1. Apportion now
   Claim only the business-use % of input VAT. Simple and done.

2. Reclaim 100% + charge output VAT
   Reclaim in full, then charge output VAT each return for the actual private use (a HMRC-accepted method when applied fairly). Keep workings.

The key is picking a fair & reasonable basis (e.g., mileage %) and applying it consistently.

Copy-and-use examples (20% VAT; invoice in your VAT-registered business name)

All-business use (not a VAT car)
Price £36,000 + £7,200 VAT → Reclaim £7,200.

70% business / 30% private — apportion method (not a VAT car)
Reclaim 70% × £7,200 = £5,040 now. No output VAT later for private use (you already restricted).

Vehicle is a VAT “car” (payload 950 kg) with any private availability
Price £36,000 + £7,200 VAT → Reclaim £0 on purchase (blocked), unless used exclusively for business and not available for private use. (VAT on repairs/maintenance still reclaimable to the extent of business use.)

Bought under the VAT margin scheme (used vehicle)
If the invoice shows margin scheme (no VAT stated), there’s no input VAT to reclaim on the purchase. Check the invoice wording.

If it’s leased rather than bought, the usual 50% input VAT block applies on rentals for cars with any private availability.

For drivers in Shropshire & Mid Wales

For trades, farms and rural SMEs, double-cabs remain practical workhorses. VAT on pickups still follows the 1-tonne payload rule and business-use evidence; treat BIK for employees as a separate question under the new 2025 rules.

Typical local use-cases

• Builders & roofers in Telford hauling tools and towing plant

• Farms across Powys moving feed and livestock

• Landscaping/forestry teams between Oswestry and Welshpool

• SMEs around Shrewsbury and Newtown transporting kit and stock

Decision checklist (tick these off)

• Do you have payload evidence on file (photo of VIN plate or spec)?

• Is the vehicle used for business — and can you prove it?

• Will you apportion input VAT, or reclaim 100% + output-VAT for private use?

• Employee BIK relevant? (BIK rules changed 6 Apr 2025; VAT didn’t.)

• Are your invoices, logs and a short vehicle-use policy up to date?

FAQs

Can I reclaim VAT if I sometimes use the truck privately?
If it’s not a VAT car, yes — either apportion now or reclaim 100% + output VAT on private use each period. Keep fair & reasonable records.

What evidence will HMRC expect?
A proper VAT invoice, payload/spec proof, and journey records (or another fair method) linking the vehicle to business activity.

Do hard tops or accessories affect VAT status?
They can. HMRC uses 45 kg for a hard top; that can push payload below 1,000 kg and change status to a car.

Are the April 2025 BIK changes relevant to VAT?
Not directly. HMRC says the VAT input-tax position is unchanged; the BIK test now follows construction/suitability, not payload.

Can I reclaim VAT on a used vehicle bought under the margin scheme?
Not on the purchase (no VAT shown). Check your invoice — margin scheme means no input VAT to reclaim.

Buying or selling a pickup with JT Hughes

We’ll help you pick what’s fit for purpose — no pressure, no jargon.

• Appraisals & part-exchange with clear explanations

• Flexible finance in plain English

• Servicing & MOT for rural mileage and towing

• Used stock rotates; ask what’s in or due (we often see Mitsubishi and other favourites)

Next steps
Pop in to: JT Hughes Newtown Mitsubishi or JT Hughes KGM Shrewsbury 
Call or email for a friendly chat about suitability, running costs and what to show your accountant.