Thousands of drivers who rely on double-cab pick-up trucks for their jobs are facing a sharp rise in tax bills after a rule change came into force last year. The update affects tradespeople, farmers, delivery workers and small business owners who depend on these vehicles for both work and personal use. For years, double-cab pick-ups were treated as vans for tax purposes, which meant much lower charges for those using them as company vehicles.
But that changed in April 2025, when the Government reclassified these trucks as cars for certain tax rules. The change applies to any double-cab pick-up ordered or registered on or after April 6, 2025. Under the old system, vans had a simple, flat “benefit in kind” (BiK) rate of £4,020. A basic-rate taxpayer paid £804 a year, and a higher-rate taxpayer paid £1,608. This made models like the Ford Ranger, Toyota Hilux and others a popular choice for workers who needed space for tools as well as a second row of seats for family use.
But now these same trucks are being taxed like standard passenger cars, and because of their size and higher CO2 emissions, the bill has soared.
The tax is now calculated as a percentage of the vehicle’s list price rather than the old fixed van rate.
To show the scale of the increase, we can look at calculations for a Ford Ranger Wildtrak with a list price of around £48,000.
The model falls into the top 37% emissions bracket, meaning its taxable benefit shoots up from £4,020 to £17,760.
For a basic-rate taxpayer, that means an annual tax charge jumping from £804 to £3,552. A higher-rate taxpayer would see their yearly bill rise from £1,608 to over £7,100, an increase of more than £5,000.
Fuel costs create an even bigger gap. Under the old van rules, the fuel benefit was roughly £769, meaning a basic-rate taxpayer paid £153, while a higher-rate taxpayer paid £307.
But under car rules, there is no fixed rate. Instead, the taxman applies a standard figure of about £28,200, then multiplies it by the emissions percentage, The Sun reports.
For the Wildtrak, this means a taxable fuel benefit of £10,434, resulting in more than £2,000 in fuel tax for a 20% taxpayer, far higher than the previous system.
A Treasury spokesperson said the change followed a legal ruling: “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.”
Industry experts warn that smaller firms will struggle the most. Many use these trucks as multi-purpose vehicles, carrying heavy equipment during the day and doubling as family transport in the evenings.
Matt de Prez, the editor of Fleet News, said the impact will be widespread across trades.
He added that small businesses such as plumbing firms will feel it sharply because “drivers often use work vans for personal use too”.
Sarah Coles, the head of personal finance at Hargreaves Lansdown, said the changes could leave some companies with much higher bills.
She added: “Where companies have flexibility to change their fleet, it could restrict choice. But where they are stuck with a particular model for a period it could quadruple their tax bill.”