Is a double cab pickup right for your business?

Imagine you are a sole trader or small business owner.

You rely on a double cab pickup (DCPU) for work, perhaps to transport tools, materials, or team members.

The Budget has introduced tax changes that could make owning one far more expensive from 2025. Does that mean you should act now?

What is a DCPU?

Think of a DCPU as a hybrid between a workhorse and a people carrier.

It has a front cab, a second row of seats for up to four passengers, and an uncovered pickup bed at the back.

Crucially, it boasts a payload capacity of at least one tonne, which currently qualifies it as a commercial vehicle for tax purposes.

Landscapers, builders, and tradespeople often swear by them for their practicality and versatility.

What is changing?

Right now, DCPUs enjoy tax perks typically reserved for commercial vehicles. These include:

Lower benefit-in-kind (BIK) rates for employees using them for personal mileage, which keeps costs manageable.
Generous capital allowances, allowing businesses to deduct up to 100 per cent of the purchase cost in the first year.

But starting from April 2025 (Corporation Tax) or 6 April 2025 (Income Tax), DCPUs will be taxed as cars. What does this mean?

Higher company car tax bills – If an employee uses a DCPU privately, their BIK could skyrocket. For instance, a higher-rate taxpayer currently paying around £1,800 annually might see costs exceed £10,000, depending on the vehicle’s CO2 emissions and list price.
Reduced capital allowances – Businesses will no longer be able to claim the full cost upfront. Instead, deductions may drop to as little as six per cent annually, delaying tax relief.

Should you buy or lease a DCPU now?

It is tempting to say yes, but these considerations need to be taken:

Do you need to replace an ageing vehicle? If so, buying or leasing before the April 2025 deadlines could lock in the current tax benefits until at least 2029.
Expanding your fleet? The same principle applies. Investing now could save you money in the long run.

Consider whether buying outright or leasing makes more financial sense for your situation.

Leasing offers flexibility, but avoid contracts running past 2029 when the new rules will eventually apply to all vehicles.

What about private use?

If the DCPU is used for personal journeys, the tax costs will rise sharply under the new rules.

Keeping its use strictly work-related could help mitigate BIK charges.

However, stricter controls around private use, similar to those for cars, may not be practical for every business.