Businesses urged to secure pick-ups before tax hike

AM100 dealership group Hendy is advising businesses and fleet operators considering buying or leasing a double-cab pick-up to act swiftly before a substantial increase in Benefit-In-Kind (BIK) charges takes effect on 6 April.

In the 2024 Autumn Budget, HMRC announced that from 1 April 2025, double cab pick-ups with a payload over one tonne will be classified the same as company cars for corporation tax purposes. For income tax purposes, this change will take effect from 6 April 2025.

A key example of a vehicle impacted by the new regulation is the Ford Ranger, the UK’s most popular double cab pick-up. Currently, it incurs a fixed BIK rate of £3,960 per year. Under the new tax rules, these costs will increase to £4,400 for lower rate taxpayers (20%) and £8,880 for higher rate taxpayers (40%).

To meet the anticipated surge in demand before the tax changes take effect, Hendy Group has secured additional stock of the Ford Ranger across its locations in the south of England.

Businesses that place an order for a double-cab pick-up before 6 April will benefit from transitional BIK arrangements, allowing them to maintain existing BIK terms until 5 April 2029. BIK calculations are based on the P11D value, CO2 emissions, and the employee’s tax band. This tax applies only if the vehicle is used privately, as is common for many users.

Hendy’s BIK campaign will be running throughout March, with promotions featured on its website and social media channels.

David Graham, head of LCV Sales at Hendy, said: “This campaign underscores our dedication to supporting the commercial vehicle sector by helping customers keep their ownership costs as low as possible. We understand the financial pressures businesses face and aim to raise awareness of these tax changes so they can plan accordingly.”

Across its 18 outlets, Hendy sells and services a diverse range of new and used commercial vehicles from Ford, Renault, Nissan, Vauxhall, Land Rover, and Iveco.