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As of April 2025, most Double Cab Pick-Ups (DCPU) vehicles are no longer treated as vans for direct tax purposes. This may have had implications for your corporation tax, income tax and national insurance contributions (NICs).

DCPU vehicles, such as the Ford Ranger, are now treated as cars. According to HMRC, this is ‘because typically these vehicles are equally suited to convey passengers and goods and have no predominant suitability’.

Tax liabilities may be increased and tax relief may be applied at a slower rate. The changes mean that:

- employers may need to pay more Class 1A national insurance

- employees using DCPUs for personal use may face higher benefit-in-kind (BIK) taxes

- businesses will also no longer be able to claim full expensing on DCPUs for corporation tax and income tax

- when leasing a DCPU, only 85% of leasing costs will be tax deductible

Note that all of the tax changes outlined above do not apply to Double Cab-in-Van (DCIV) vehicles, such as the Ford Transit Custom. They’ll continue to be classified as vans.

Transitional arrangements

If you purchased, leased or ordered a DCPU before 6 April 2025, you may be pleased to know that HMRC announced some transitional measures. You will enjoy the previous tax treatment until whichever of these comes first:

- 5 April 2029

- The vehicle’s disposal

- The lease’s expiry

Business owners should note that these changes have no impact on VAT treatment, which remains based on your vehicle’s payload capacity. If yours is one or more tonnes, it’ll continue to be treated as a van for VAT purposes.

If you own a DCPU and you’re unsure about how these changes may impact you, we’d advise talking to a tax professional.

Our team will also do their best to help – you can reach us by messaging our contact page, by phoning  01904 935126 or by emailing sales@demonconversions.co.uk.

Pictured: The Ford Ranger Wildtrak with Demon Diablo Conversion.

Published: 10th of April 2025

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