Car taxes could see drivers fork out thousands in extra costs with road users who own petrol and diesel pick-ups potentially seeing costs skyrocket. Labour Party Chancellor Rachel Reeves has brought in a Vehicle Excise Duty (VED) change which has seen double and extended cab pick-up trucks classed as company cars for Benefit-in-Kind tax and Capital Allowance purposes. It means double cab pick-up trucks are now subject to company car BiK rates, which depend on the emissions output of the vehicle. READ MORE Future of major UK high street chain with 281 shops in doubt Alan Able, managing director of Isuzu UK, commented : “As the Pick-Up Professionals, we and our dealer network are having the same conversations daily. We want to reassure the public and business owners that VAT remains reclaimable, and VED is still at the commercial rate. “These benefits continue to support tradespeople, farmers, and fleet operators across the UK.” Research from Isuzu found that 71 per cent of people who opt to purchase a double cab pick-up truck are still uncertain about how the changes affect VED and VAT. Oliver Garner, Head of Tax at Isuzu UK, added: “We understand these changes are complex. “Our priority is helping customers navigate this evolving landscape with clear, factual guidance, particularly around order dates, payloads, and eligibility for transitional relief.” A Court of Appeal ruling found that double cab pick-up vehicles do not demonstrate “a predominant suitability for transporting goods over passengers”. This led to HM Revenue and Customs reclassifying them as dual-purpose vehicles for BiK. Transitional arrangements will apply for employers that have purchased, leased, or ordered a double cab pickup before 6 April 2025, whereby they will be able to rely upon the previous treatment until the earlier of disposal, lease expiry, or 5 April 2029. The position prior to 6 April 2025 remains unchanged. Where an employer transfers a double cab pickup between their own employees between 6 April 2025 and 5 April 2029 and the transitional arrangements already apply, they may continue treating it as a van for tax purposes, provided there is no disposal or the lease has not expired.