HMRC's revised policy on the tax treatment of double cab pick-ups.
HMRC has changed its policy on double cab pick-ups (DCPUs) for direct tax purposes. From April 2025 most DCPUs will be treated as cars not vans potentially meaning increased tax bills for employers employees and businesses.
What is a DCPU?
For HMRC a DCPU has:
- two rows of seats in a front passenger cab with space for the driver and at least four passengers;
- four doors that are capable of being opened independently; and
- an uncovered pickup area behind the passenger cab.
HMRC says that references to DCPUs in its guidance include ‘variants such as extended extra king and super cab pickups’.
What’s changing?
Before April 2025 HMRC accepted that a DCPU with a payload of one tonne or more was a van for the following direct tax purposes:
- benefit-in-kind (BIK) calculations;
- capital allowances; and
- deductions from business profits for:
- hire costs...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
