Double cab pick-ups – a van or car for tax purposes?

The commentary on this can be found here.

What does this mean for company DCPU drivers?

This is good news for those with DCPUs with a payload over a tonne as these company vehicles will now remain as vans for P11D and capital allowance purposes.

However, for those with DCPUs of less than a tonne in payload weight, it is important to be aware that these have always been classed as cars and will remain classed as cars for P11D purposes.

Does the initial announcement and repeal of the announcement indicate a change of HMRC focus generally?

As we know, the government are seeking to raise tax revenues through various means and are investing again in HMRC resource to carry out reviews into tax compliance.

Vehicle definitions have been a particular focus for some time, as highlighted through the success HMRC had with the Coca-Cola case. The events we have seen where the classification of DCPUs has been updated then repealed, transforming from a van to a car and back again, highlight this focus on vehicle classification is here to stay and HMRC challenges should be expected.

Areas to watch out for include:

• How has the payload weight been measured on the DCPU? Does it align with HMRC’s approach and is there evidence to confirm this?
• New “vans” – HMRC is increasing the scrutiny regarding whether vehicles are “primarily constructed” to carry goods and / or a burden, or may have a dual purpose, and therefore be defined as cars for benefit in kind purposes. With technology improving and vehicles being more “comfortable” for passengers, there is a risk of newer versions of more traditional “vans” being considered as having a dual purpose and therefore being recategorized as cars.
• Pool vehicles – vans only have a benefit in kind when being made available and used for personal reasons outside of ordinary commuting. However, cars have less protection here and where employers have pool vehicles that have been classed as vans with no benefit in kind arising, HMRC may seek to challenge by reclassifying the vehicle for benefit in kind purposes.

It is therefore recommended that a review of vehicle fleets takes place as a matter of priority, particularly with P11D season around the corner. Our previous article provides more background on this.

More widely, it was also announced that HMRC is looking to payroll benefits from April 2026. Our FAQs can be found here.

Payrolling benefits is not something to rush into. It will be important to consider how this interacts with current benefits offered and internal governance systems in place before making any changes.

How can we help?

First and foremost, employers need to consider whether DCPUs will be taxable in 2023/24 and in future tax years, paying close attention to whether the vehicle meets the current van definition used and how it will be defined in the future. Again, please bear in mind that HMRC’s definition of payload may vary from that of the car manufacturer, making this even more complicated in the short term.

The “fog” surrounding overall vehicle definitions remains an area of concern and one that HMRC will continue to use to challenge van definition and seek to recategorize as cars.

We can help with reviewing your vehicle fleets and helping to support governance, compliance and strategy here. 

Alongside this, we will also be happy to support with the preparation and submission of the forms P11D and employer P11D(b) to ensure any taxable benefit is being calculated correctly.

As a starting point, feel free to fill in our questionnaire and we can then arrange a call to discuss this further with you. Should you have any questions following this article, please get in touch and we would be happy to discuss.

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