BIK (Benefit in Kind) Study
In the Autumn Budget, the UK Government announced it will treat double cab pick-ups with a payload of one tonne or more as cars for certain tax purposes. This will be conducted based on emissions, not the current flat rate for commercial vehicles.
From 1 April 2025 for Corporation Tax, and 6 April 2025 for income tax, double cabs will be treated as cars for the purposes of capital allowances, benefits in kind (BIK), and some deductions from business profits.
Put into perspective, a Ranger Wildtrak Double Cab (2.0l EcoBlue) is currently subject to a flat commercial BiK monthly rate of £66 for a 20 per cent taxpayer and £132 for a 40 per cent taxpayer. From 6th April, the same vehicle will cost circa £300 and £600 per month, respectively. Ranger PHEV will be considerably cheaper than diesel variants, however this will also carry a higher monthly cost than the current flat rate.