Isuzu UK, The Pick-Up Professionals, are raising awareness of the forthcoming changes, dispelling myths circulating on social media, and providing customers with accurate details to make better-informed decisions about when to order a new pick-up in 2025. A new campaign called BIK will spotlight this pivotal change. The Isuzu D-Max we be featured with a playful thought bubble stating: “From 6th April 2025, I’ll identify as a car!” The campaign serves as a reminder for businesses and buyers to act now and take advantage of the current tax benefits before the new rules come into force.
Under HMRC’s updated legislation announced in the Autumn Budget 2024, double cab pick-ups will no longer be classified as commercial vehicles for Benefit in Kind (BIK) and Capital Allowances (CA) purposes. Instead, they will be treated as cars, leading to increased tax liabilities for buyers and businesses alike.
Alan Able, Managing Director of Isuzu UK, commented: "The BIK campaign reflects our commitment to keeping our customers informed and empowered. We recognise that HMRC’s decision represents a fundamental shift in how double cab pick-ups are taxed. With this campaign, we aim to ensure our customers understand the implications and encourage them to act now to avoid higher costs later. The Isuzu D-Max has always been the backbone of businesses, and this campaign underscores the value it offers ahead of the upcoming changes."
UNDERSTANDING THE LEGISLATION CHANGES: FAQ
What are the new changes, and how does this affect double cab pick-ups?
- Benefit in Kind (BIK): From 6th April 2025, double cab pick-ups will be treated as cars for BIK purposes, shifting from the current flat rate of £3,960 to a variable rate based on CO2 emissions.
- Capital Allowances (CA): From 1st April 2025, these vehicles will also be classified as cars for CA purposes, moving away from their prior status as ’plant and machinery.’
Will there be a transitional period before the cut-off date?
Yes. Double cab pick-ups purchased or ordered before 6th April 2025 for BIK purposes (and 1st April 2025 for CA purposes) will retain their commercial vehicle classification until the earlier of disposal, lease expiry, or 5th April 2029.
Why have these changes been made?
The Court of Appeal concluded that double cab pick-ups serve dual purposes, both passenger and cargo transport, necessitating their reclassification as cars for tax purposes.
Are single and extended cab pick-ups affected?
No. Single and extended cab pick-ups remain classified as commercial vehicles.
Does this impact VAT reclaim eligibility?
No. VAT treatment for double cab pick-ups remains unchanged.
Does this impact road tax?
No. Vehicle Excise Duty (VED), also known as road tax or car tax, remains unchanged for double cab pick-ups.
What happens if I purchase a double cab pick-up after April 2025?
Vehicles purchased after this date will be subject to the new tax treatment, leading to higher costs for buyers and businesses.
WHY ACT NOW?
Isuzu UK is encouraging prospective buyers to consider the significant financial implications of delaying their purchase until after April 2025. By acting before the deadline, customers can benefit from the existing flat-rate BIK taxation structure, avoiding potentially steep increases, take advantage of current capital allowances for commercial vehicles, which offer more favourable tax deductions, and lock in their purchase under the transitional rules, ensuring they retain the commercial classification until at least April 2029.
Don’t wait until it’s too late. Take advantage of the existing tax framework by ordering your Isuzu D-Max before 6th April 2025. For more details speak to Argyll’s local dealer S&S Services on 01292 880080.
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