Motorists living in this type of area ‘hammered’ | Tech News
Petrol and diesel motorists living and dealing in countryside areas could possibly be caught out by Labour’s new April car tax hike, in response to campaigners. Experts at Countryside Alliance have careworn the principles round benefit-in-kind double cab pick-up charges would come to chunk many in rural areas.
HM Revenue and Customs (HMRC) reclassified double cab pick-up truck autos from April 6, 2025 with the choice rising charges for highway customers. The resolution means homeowners no longer obtain beneficial benefit-in-kind charges for proudly owning a double cab pick-up with many charges skyrocketing. BiK is a tax on workers who obtain advantages or perks on high of their wage. Usually they apply on a wage sacrifice car scheme.
Tim Bonner, chief government of the Countryside Alliance, warned the choice would “hit working people hard” in a main blow.
He stated: “Rachel Reeves’ pick-up truck tax will hammer thousands of working people in the countryside and beyond.
“From farmers and gamekeepers to plumbers and builders, the dual cab pick-up has change into the nation’s favorite workhorse. The resolution to reclassify them as vehicles will hit working people exhausting.”
From April 6, double cab pick-up trucks with a payload of at least one metric tonne are no longer classified as vans.
Instead, these vehicles will be treated as cars and will pay a hefty increase to stay on the roads.
According to a previous analysis from Haines Watt, owners of a double cab pick-up would have likely paid around £1,887 in tax fees under the previous system.
However, from April 2025 the same vehicle will be taxed as a car which is based on CO2 emissions and the vehicle’s list price.
However, most pick-ups are heavy vehicles which are likely to fall into the highest pollution band.
This will see road users pay an eye-watering £10,094 to use the roads in a whopping 432% rise.
HMRC explained: “It therefore follows that from 6 April 2025, most double cab pickups are expected to be classified as cars when calculating the benefit charge.
“This is because typically these vehicles are equally suited to convey passengers and goods and have no predominant suitability.”
However, many firms are likely to have benefited from the Government’s transitional preparations.
This ensured employers who bought, leased, or ordered a double cab pick-up earlier than 6 April 2025 might comply with the previous tax guidelines till 2029.
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