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JT Hughes
17-Aug-2025

Pickup Tax Changed - VAT Rules Didn’t

VAT on Pickups

We’ve spoken to a number of farmers and business owners recently who were unsure about the new tax rules for pickups, particularly whether VAT can still be reclaimed.

So, we thought you'd want to know:

Yes, you can still reclaim the VAT on qualifying double cab pickups like the Isuzu D-Max, provided your business is VAT-registered and the payload is over 1 tonne.

While the Capital Allowance (CA) rules have changed since April 2025, several key benefits remain.

Here’s a quick breakdown:

Capital Allowances
Before April 2025
Treated as ‘plant and machinery’ (100% or 18% relief)
After April 2025
Reclassified as company cars; CO₂ based allowances
Impact
Reduced tax efficiency on new vehicle write-offs
Vehicle Excise Duty
Before April 2025
£345 per year for a commercial vehicle
After April 2025
No change, still £345 per year
Impact
Still cost-effective
VAT Reclaim
Before April 2025
Fully reclaimable if payload > 1 tonne
After April 2025
No change, still fully reclaimable
Impact
Key benefit for VAT-registered businesses remains
Single Cab Pick-Ups
Before April 2025
Treated as vans
After April 2025
No change
Impact
Unaffected by new tax rules

 

Unsure how recent changes might impact your business—or whether it’s still the right time to upgrade your vehicle?

Our team at JT Hughes Newtown Isuzu is here to offer honest advice and help you make the right decision for your needs.

Call us on 01686 622300 to speak with a specialist or book a no-pressure test drive.

Explore our latest Isuzu Pick-up offers, designed to deliver serious value for serious work. 

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