New car tax changes 'will harm’ motorists as calls emerge for U-turn
Car tax updates are set to be introduced in Spring 2025 with many motorists set to feel the sting.
New car tax changes set to be introduced in a matter of months are likely to “harm” motorists across the country, campaigners have claimed.
From April 2025, double cab pick-ups with a payload capacity of one tonne or more will have their Benefit-in-Kind classification updated.
After the changes, vehicles will be classified as passenger vehicles meaning owners will not be able to benefit from more affordable rates.
Under the current rules, vehicles are classified as light commercial vehicles and receive favourable tax treatment.
It means double cab pick-up owners must pay a flat BIK rate of approximately £3,960 annually.
However, the new rules will see charges issued on a sliding scale depending on vehicle emissions.
This will likely result in higher fees for those running petrol and diesel models with heavier emission rates.
A new Parliament Petition is now demanding that officials reconsider the updates as they warn of major disruption to road users.
It reads: “We call on the Government to reverse the recent decision announced in the 2024 Autumn Budget to reclassify double cab pickup vehicles with a payload of one tonne or more as cars for certain tax purposes.
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"We think this change will harm many businesses, farmers, tradespeople, and individuals relying on double cab pickups for work, making work vehicles costly.
“We think reclassifying them as cars drastically raises costs by increasing Benefit in Kind tax and lowering their capital allowances.
“Essential to rural operations, they carry heavy loads and handle rough terrain, yet we think this tax reclassification ignores their commercial use. Reconsider the change and engage affected industries.”
The petition was started by campaigner Tim Snowden and is expected to run until the end of May 2025. A total of 10,000 signatures are required for an official Government response to the petition.
Meanwhile, 100,000 signatures are needed for the topic to be officially debated in Parliament.
However, those purchasing double cab pick-ups in the next few months can take advantage of a loophole to avoid the rises.
The Autumn Budget states that orders before April 2025 will continue to use the previous system until at least 2029.
The document reads: “The existing capital allowances treatment will apply to those who purchase DCPUs before April 2025. Transitional benefit-in-kind arrangements will apply for employers that have purchased, leased, or ordered a DCPU before April 6, 2025.
"They will be able to use the previous treatment, until the earlier of disposal, lease expiry, or April 5, 2029."
