Top News

HM Revenue and Customs (HMRC) could be "considering" new car tax rules, with one type of vehicle targeted by the updates. HMRC could adjust the VAT rules for electric pick-up trucks following concerns raised by the Society of Motor Manufacturers and Traders (SMMT).

For double-cab pick-up trucks to be considered commercial vehicles, models must have a payload of at least one tonne. A payload is the total weight a vehicle can safely carry, including passengers, cargo and trailer weight.

However, the larger size of electric car batteries has meant manufacturers have struggled to achieve this on some of their EV models. The SMMT has raised the issue with HMRC, explaining that manufacturers were facing difficulties in meeting the threshold.

HMRC has now admitted it could be open to reviewing changes, which could lead toan update sooner rather than later.

HMRC told Fleet News: "SMMT has submitted a proposal suggesting a reduced payload threshold for electric DCPUs, which would allow them to be treated as commercial vehicles and enable VAT recovery on the purchase price. We are considering this proposal."

There is also the possibility that those with the keys to lower-payload trucks could benefit from VAT reclamation. Early estimates from FleetNews suggest businesses may be able to reclaim as much as £8,000.

HMRC updated its classification of double-cab pick-up trucks back in April 2025 as part of a series of tax changes.

Under the tweaks, any double-cab pick-up trucks with a payload of under one tonne will be classified as a car, with anything over one tonne deemed to be a van.

However, transitional arrangements apply for employers who first purchased, leased, or ordered a model before 6 April 2025. Motorists in this category will be able to rely on the previous rules until April 2029.