Warning to Workers About Significant Car Tax Increases in 2025
Employees relying on double-cab pickup trucks as part of their work perks are set to face a dramatic rise in tax payments starting in April 2025. The government’s updated benefit-in-kind (BIK) rules will see vehicles traditionally treated as light commercial vehicles reclassified as cars—leading to significant cost implications for workers across the UK.
The changes will affect company car drivers, particularly those using petrol, diesel, and electric double-cab pickups. According to Andy Wood, a spokesperson for tax specialists at Tax Natives, “Big changes are coming for double-cab pickups. From April 2025, if your pickup has a payload of at least one tonne, it’ll be taxed as a car for Benefit-in-Kind purposes. Translation? Costs could climb significantly for those who use these vehicles as part of their job perks.”
A Closer Look at the Impact
For employees driving a Ford Ranger, current tax costs stand at a flat fee of approximately £3,960 annually. This figure is expected to rise by up to £3,500 for certain models once the new regulations come into effect. Vehicles with payloads exceeding 1,000kg—or 1,045kg if equipped with a hardtop or canopy—will no longer qualify for beneficial tax treatment.
Double-cab pickup trucks have been a popular choice for businesses and sole traders due to their versatility and favourable tax classification. However, their higher CO2 output makes them less appealing under car classification rules. Drivers with vehicles carrying a payload of less than one tonne are already taxed as cars and will remain unaffected.
What Workers Should Do
The changes leave many employees and employers questioning the viability of keeping these vehicles in their fleets. Experts suggest that workers affected by the changes should assess whether their vehicle remains a cost-effective option under the new tax framework. Andy Wood advises, “If this affects you, it’s time to crunch the numbers and see if your vehicle still makes financial sense.”
For some, the transition might necessitate exploring alternative vehicles with lower emissions and tax liabilities. For others, it could mean renegotiating benefits packages or company car agreements to offset the increased costs.
Who Will Be Hit the Hardest?
Workers across industries that rely on double-cab pickups—such as construction, agriculture, and utilities—are expected to bear the brunt of the changes. The reclassification will disproportionately affect employees in these sectors, many of whom rely on their vehicles for both work and personal use.
The move by the government aims to align taxation policies with environmental goals by discouraging the use of high-CO2 vehicles. However, critics argue that the policy fails to account for the practical needs of workers and businesses who depend on these vehicles daily.
The Workers Union Says…
“With significant tax increases on the horizon for company car drivers, workers across the UK are being encouraged to plan ahead and consider their options. The looming changes to benefit-in-kind rules for double-cab pickups underscore the need for informed decision-making and proactive financial planning.”
