Changes to legislation of Dual Cab Pick-Ups

HM Revenue and Customs (HMRC) is making some changes to the guidance on the Benefit in Kind treatment of double cab pickups (DCPUs).

This new guidance (EIM23151) has been brought in to clarify these updated rules, which will come into effect from the 1st of July 2024.

It states that the classification of double cab pickups will be determined by assessing the vehicle ‘as a whole at the point that it is made available’ to determine whether the vehicle construction has a primary suitability as per the two-part test outlined at EIM23115 onwards.

In reality, this means that from the 1st of July 2024, most (if not all) double cab pickups will be classified as cars when calculating the benefit charge rather than as vans, which is currently the case. The reasoning is that they are equally suited to carry passengers and/or goods, and have no ‘predominant suitability’.

What if I already have Dual Cab Pick-Ups in my Fleet?
The good news is that HMRC has put in place some transitional arrangements which will apply when employers have alreday purchased, leased, or ordered a double cab pickup before the 1st of July 2024. If this is the case, you can carry on using the previous treatment until the disposal, end of lease, or the 5th of April 2028 (whichever comes first).