HMRC confirms drivers of certain vehicles will | Tech News

HMRC tax guidance initially seemed to suggest that reallocating a pick-up truck to another employee would change its status.

But officials have now stressed this is not the case with transitional arrangements remaining in place for vehicles reallocated to a new driver.

Speaking to Fleet News, HMRC said: “If an employer transfers a double cab pick-up to another employee between April 6, 2025, and April 5, 2029, they may continue treating it as a van for tax purposes, provided there is no disposal, and the lease has not ended.”

HMRC has already accepted that transitional BiK arrangements will apply for employers that purchase, lease or order a vehicle before April 6.

However, those buying brand-new double cabs after April will still be hit with hefty costs.

Under current rules, pick-ups have a fixed benefit-in-kind charge of £3,960. But, road users could pay thousands more when models are reclassified.

Previous FleetNews analysis said Ford Ranger owners would pay up to £7,110 per year with models pushed into the 37% BiK bracket.

Andy Wood, spokesperson for TaxNatives, previously said “big changes” were coming for owners with individuals set to pay more.

He explained: “Costs could climb significantly for those who use these vehicles as part of their job perks.

“These pickups have long been a go-to choice for businesses and sole traders thanks to their tax benefits, but that advantage is about to disappear.

“If this affects you, it’s time to crunch the numbers and see if your vehicle still makes financial sense.”