The Chancellor of the Exchequer, Rachel Reeves, announced her Spring Statement on Wednesday 28th March 2025. In this article we’re going to look at how this will affect company cars and vans, this includes the new rulings on double cab pick-up trucks.
Taxable benefits for Company Cars
The rates of tax for company cars have been amended for 2025/2026 as follows:
- Zero Emission car rises from 2% to 3%
- Other cars will increase by 1%
- The maximum benefit remains at 37%
The government has confirmed increases to the benefit in kind (bik) rates for company cars for tax years up to and including 2029/2030.
Car Fuel Benefit Charge
For those that receive fuel as part of their remuneration, the car fuel benefit charge from the 6th April 2025 is £28,200.
Company Vans
From 6th April 2025, those who use their company vans for private use, the benefit charge is £4,020. The fuel benefit for van fuel is £769.
Changes with Double Cab Pick-up Trucks
Double Cab Pick-up Trucks (DCPU) with a payload of one tonne or more as a car for certain tax purposes.
From 1st April 2025 for Corporation Tax and 6th April 2025 for Income Tax, Double Cab Pick-Up Trucks will be treated as cars for the purposes of capital allowances, benefit in kind and some deductions from business profits.
Existing capital allowances treatment will still apply to those who have purchased Double Cab Pick-up Trucks before April 2025.
Transitional benefit in kind arrangements will apply for employers that have leased, purchased or ordered a Double Cab Pick-up Truck before 6th APril 2025. They will be able to use the previous treatment until the earlier of disposal, lease expiry or 5th April 2029.
Cars and Your Business
We offer a wide range of Business Services to help with both cars and vans for your company. Whether you need 1 vehicle on a fixed basis or 100 vehicles on a flexible basis, we are able to assist. We can also help New Start-up Businesses and those with overseas parent companies or unfamiliar shareholding arrangements.
Looking at adding some employer perks without any cost or too much admin? We’re launching our new Salary Sacrifice Scheme soon in association with Ezoo, keep your eyes peeled on our blog.
