Understanding Benefit in Kind Changes for 2025
This article explains recent changes to the UK’s Benefit in Kind (BiK) tax for Double Cab Pickups (DCPUs). In 2024, the government proposed taxing DCPUs with a payload over one tonne as cars, leading to a sharp increase in BiK tax. Though initially reversed, the Labour government revived the proposal in late 2024.
BiK tax applies to personal use of a company vehicle and is calculated based on factors like price and CO2 emissions. Under the new rules, DCPUs like the Toyota Hilux would face much higher taxes compared to zero-emission EVs. The article also covers transitional periods, clarifies that no BiK is due for strictly business use, and mentions changes to capital allowances and VAT treatment.