Glossary · UK
What is Double-Cab Pickup Benefit in Kind?
Since 6 April 2025, most double-cab pickup trucks provided to employees for private use are taxed as company cars, based on CO2 emissions and list price, rather than at the flat rate that applies to vans.
Full Definition
For many years, HMRC treated double-cab pickup trucks with a payload of one tonne or more as vans for both benefit-in-kind and capital allowances purposes, meaning employees with private use of one paid the flat-rate van benefit charge (£3,960 for 2026/27) rather than the far higher percentage-of-list-price charge that applies to company cars. Following a Court of Appeal ruling in 2020 involving Coca-Cola's double-cab pickups, which cast doubt on that long-standing approach, the government confirmed in February 2024 that from 6 April 2025 most double-cab pickups would instead be classified as cars for both income tax benefit-in-kind and capital allowances purposes, reflecting HMRC's view that these vehicles are, in substance, suitable for both goods transport and passenger use. Under the new treatment, the taxable benefit is calculated in the same way as for any other company car: a percentage of the vehicle's list price, set according to its CO2 emissions (and, for the many double-cab pickups powered by diesel, subject to the diesel supplement), multiplied by the employee's marginal income tax rate -- typically resulting in a materially higher tax bill than the flat van rate, especially for higher-rate taxpayers and higher list-price vehicles. Transitional arrangements protect vehicles that were purchased, leased, or ordered before 6 April 2025: these can continue to be taxed under the previous van rules until the earlier of disposal, lease expiry, or 5 April 2029. Employers providing double-cab pickups to staff going forward need to budget for materially higher Class 1A National Insurance costs as well, since employer NI is calculated on the same higher car benefit value.