A major car brand has clarified new car tax changes for motorists following several crucial changes in April that could see many drivers slapped with new charges.
Chancellor Rachel Reeves oversaw new Vehicle Excise Duty (VED) changes being introduced earlier this year, including the requirement for electric vehicles to pay car tax for the first time.
On April 6, 2025, double and extended cab pick-up trucks were classed as company cars for Benefit-in-Kind tax and Capital Allowance purposes.
This was seen as a controversial move as people who purchased new cars could face paying thousands of pounds in additional tax costs.
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Drivers could end up paying thousands of pounds in extra car tax charges after April
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Newly registered double cab pick-up trucks are now subject to company car BiK rates, which depend on the emissions output of the vehicle. Previously, there was a flat rate for commercial vehicles of £4,020 (2025/26).
This ranges from three per cent to 37 per cent, meaning any zero emission vehicles with payloads of more than one tonne will pay just three per cent, although it will increase by one per cent every year until 2028.
Despite the changes, a transitional period is in place for motorists who ordered, purchased or leased before April 6, meaning they can retain their previous classification.
This benefit will remain in place until the vehicle is disposed of, the lease expires, or April 5, 2029.
With the new changes, drivers are required to pay more for their company car tax liability, in addition to reduced tax efficiency for business asset write-offs through Capital Allowances.
Vehicle Excise Duty rates for double cab pick-ups will remain at £345 per year for a commercial vehicle, which Isuzu described as a "cost-effective annual road tax".
VAT is still fully reclaimable if the payload is more than one tonne and VAT registered, with no changes being introduced in April 2025.
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.
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"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.
The same can be said for 68 per cent of accountants and 59 per cent of non-Isuzu dealers, which has led to "unnecessary concerns" from motorists who rely on pick-up trucks for work.
Oliver Garner, Head of Tax at Isuzu UK, added: "We understand these changes are complex.
Isuzu found that the majority of people buying pick-up trucks were confused by the new tax rules
ISUZU
"Our priority is helping customers navigate this evolving landscape with clear, factual guidance, particularly around order dates, payloads, and eligibility for transitional relief."
The changes were originally meant to be introduced in 2024, although this was quietly amended following backlash from businesses.
A Court of Appeal ruling found that double cab pick-up vehicles do not demonstrate "a predominant suitability for transporting goods over passengers", leading to HM Revenue and Customs reclassifying them as dual-purpose vehicles for BiK.
Single cab pick-up trucks are not affected by these changes, meaning they are still considered to be commercial vehicles for taxation purposes.
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