Changes to Pickup Truck Classification in 2025: What Your Fleet Needs to Know
From 2025, HMRC will reclassify all pickup trucks as company cars for tax purposes, regardless of whether they are used for personal or business activities. This significant change will increase Benefit-in-Kind (BIK) values, impacting employee tax liabilities, National Insurance Contributions (NICs), and potentially fleet insurance premiums.
Pickup trucks tend to attract higher insurance premiums due to several factors:
- Size and Weight: Their larger size and heavier weight compared to standard vehicles increase the potential for more significant damage in accidents, leading to higher claim pay-outs
- Classification as Vans: Many pickup trucks are classified as vans for insurance purposes, which often results in higher premiums, particularly for commercial use. This is especially true if the vehicle is used for carrying tools, equipment, or goods.
- Theft Risk: Pickup trucks, especially those with open cargo beds, are often targeted by thieves due to the value of tools or equipment typically stored in them. Some models are also inherently theft-prone
- Usage: Their dual-purpose nature—used for both personal and commercial activities—means insurers often see pickups as higher-risk vehicles. Those used for business may require more extensive cover, including for goods in transit or hired equipment
These factors combined make pickups a more complex risk to insure, which reflects in their premiums offered by insurer.
With these changes on the horizon, now is the time to review your fleet strategy. Clarke Williams Ltd can guide you through these challenges, helping you adapt your fleet policies, manage rising costs, and ensure compliance. Contact us today for expert advice and a free fleet review.
