Recent changes in HMRC Guidance mean that from 6th April 2025, double‑cab pick‑ups will be classified as cars for benefit‑in‑kind purposes, this shift will impact the cost of ownership for some company vehicle drivers. Order a Ford Double Cab Ranger before 6th April 2025 now to lock in lower van taxable benefit rates until disposal, lease end, or 5th April 2029* (whichever comes soonest). To find out more about the mighty Ranger or how these changes may affect you, talk to our specialist team today.
Significant changes to the Benefit-in-Kind (BIK) taxation for double-cab pickup trucks, including the Ford Ranger, are scheduled for April 2025. Currently, these vehicles are classified as light commercial vehicles (LCVs), benefiting from a fixed BIK rate. However, starting April 1, 2025, for corporation tax purposes, and April 6, 2025, for income tax purposes, double-cab pickups will be reclassified as passenger vehicles.
The reclassification means that the BIK value will be calculated based on a percentage of the vehicle's list price and CO2 emissions, similar to passenger cars. For example, a Ford Ranger with CO2 emissions around 230g/km would fall into the highest BIK tax bracket of 37%. This could result in a BIK value of approximately £22,200 annually, leading to a tax bill of £8,880 per year for a 40% taxpayer.
To mitigate the immediate impact, employers who purchase, lease, or order a double-cab pickup before the respective April 2025 deadlines can continue to apply the existing BIK treatment until of disposal, lease expiry, or April 5, 2029.
The reclassification also affects capital allowances. Double-cab pickups purchased after April 2025 will be treated as cars for capital allowance purposes, losing beneficial treatments such as full expensing or 100% Annual Investment Allowance (AIA). Careful planning is advised to ensure purchases are made before the deadline to benefit from current allowances.
The Tax updates do not come into effect until April 2025. You can purchase a Ford Ranger before April to save money on the tax bill. Contact the OMC Transit Centre today to order yours and lighten the load.