UK tradespeople, farmers, and small business owners are facing a dramatic increase in their annual tax bills due to a significant change in vehicle classification rules.
What is the tax change for double-cab pick-ups?
The root of the issue is a reclassification by HM Revenue and Customs (HMRC), which came into force from 5 April 2025. Following a Court of Appeal judgement, vehicles like the popular Ford Ranger and Toyota Hilux are no longer considered vans for tax purposes.
These double-cab pick-ups, defined by having a second row of seats to carry up to five people, have been reclassified as cars. The government's rationale is that because they are equally suited to carrying passengers and equipment, they should be taxed in line with a family SUV.
How much will vehicle tax bills increase?
The financial impact for owners is severe. Under the previous system, these vehicles benefited from favourable van tax rates.
A basic rate taxpayer (20%) paid just £804 per year, while a higher rate taxpayer (40%) paid £1,608.
Now, taxed as a car, the bill is set to rocket. Analysis reported by The Sun suggests that a basic rate taxpayer with a standard Ford Ranger Wildtrak will see their annual bill surge from £804 to a staggering £3,552 – effectively a quadrupling of their tax cost.
Consequences for the self-employed and small businesses
This change strikes at the heart of many small enterprises and self-employed workers who relied on these vehicles as a tax-efficient solution for both work and family use.
Sarah Coles, head of personal finance at Hargreaves Lansdown, warned of the consequences. "Where companies have flexibility to change their fleet, it could restrict choice," she said. "But where they are stuck with a particular model for a period it could quadruple their tax bill."
A Treasury spokesperson stated: "Following a judgement by the Court of Appeal, Double Cab Pick-ups should now be treated as cars for certain tax purposes, and we have put in place rules to help businesses transition to the new system."
The move is likely to force a rethink for many businesses regarding their commercial vehicle choices, with potential knock-on effects for vehicle suppliers and the second-hand market for these previously popular models.
