The changes disproportionately affect self-employed tradespeople and rural workers who rely on rugged double-cabs for tools, crew transport, and family use.
The change, now in force as of January 2026, stem from HMRC aligning tax rules with a 2020 Court of Appeal judgment. This ruled that double-cab pick-ups (with rear seating plus a load bed) are equally suited to carrying passengers, lacking “primary suitability” for commercial loads. From April 6, 2025, for income tax/BIK (and April 1, 2025, for corporation tax), these vehicles no longer qualify for the flat van BIK rate of £4,020, which previously meant a basic-rate (20%) taxpayer paid around £804 annually, plus a low flat fuel benefit.
Chancellor Rachel Reeves (Image: Getty)
There are fears the changes will disproportionately impact so-called ‘white van men’ (Image: Getty)
Instead, new or newly provided double-cab pick-ups fall under car rules: BIK is calculated as a percentage of the vehicle’s list price (P11D value) based on CO2 emissions, often hitting the top 37% bracket for high-emission diesels.
For a typical £48,000–£50,000 model like a Ford Ranger Wildtrak, this can push the taxable benefit to £17,760–£18,500 or more — quadrupling the bill to £3,552+ for basic-rate taxpayers and £7,100+ for higher-rate (40%) ones.
Private fuel provision adds thousands more, with the 2025/26 fuel multiplier at £28,200 multiplied by the emissions percentage (eg, £10,434 at 37%), reports The Sun.
The Treasury maintains the reform corrects inconsistent treatment post-court ruling and includes transitional relief: vehicles purchased, leased, or ordered before April 6, 2025 continue under old van rules until disposal, lease end, or April 5, 2029 (whichever comes first), even if reassigned between employees.
VAT reclaim rules remain unchanged for payloads of one tonne or more.
However, critics — including farmers, builders, plumbers, electricians, and small business groups — argue the “stealth tax” hits the “little guy” hardest. It disproportionately affects self-employed tradespeople and rural workers who rely on rugged double-cabs for tools, crew transport, and family use.
Industry voices warn of fleet downsizing, higher costs for essential workhorses, and pressure to switch to less capable single-cab models or lower-emission alternatives.
A Treasury spokesperson said the changes help businesses transition while closing a loophole for multi-purpose vehicles.
As the full impact bites in the 2025/26 tax year, many affected drivers face sharply higher bills unless they secured transitional protection. Experts advise reviewing fleets urgently and consulting tax professionals.
