We hereby call on the Government to reverse the recent decision announced in the 2024 Autumn Budget to reclassify Double Cab Pickup Vehicles (DCPUs) with a payload of one tonne or more as cars for tax purposes. This change will have a significant and adverse impact on many businesses, farmers, tradespeople, and individuals who rely on these vehicles for commercial use.

Reasons for Petition:

1. Increased Tax Burden: The reclassification of DCPUs as cars will result in significant increases in Benefit in Kind (BiK) tax, Class 1A National Insurance contributions, and corporation tax, making it more expensive for individuals and businesses to own and operate these vehicles. These vehicles are essential for the smooth operation of many businesses, particularly in rural areas, where access to specialized equipment and tools is required. The additional tax burden could lead to businesses incurring unmanageable costs or even having to scale back operations.
2. Impact on Rural Communities: Double cab pickups are a vital resource for people living in rural areas, especially farmers, tradespeople, and small business owners. These vehicles are designed to handle heavy loads and tough terrains, making them indispensable for those working in agriculture, construction, and other industries that require a robust and versatile vehicle. The decision to treat DCPUs as cars for tax purposes ignores the practical needs of these sectors.
3. Commercial Vehicles: The new tax treatment is unfair as it overlooks the specific nature of DCPUs. These vehicles are used primarily for work, not as private cars, and are often essential for transporting goods, equipment, or materials. By classifying them as cars, the government is effectively penalising businesses for choosing practical and cost-effective vehicles to meet their operational needs.
4. Small Businesses: The new tax changes will disproportionately affect small businesses that rely on DCPUs for daily operations. These businesses, many of which are already struggling with rising costs, will be burdened with higher taxes that could lead to difficult financial choices. This move could also undermine the viability of small businesses in industries such as construction, farming, and logistics.
5. Transitional Period Insufficient: While the government has provided a transitional arrangement for those who have purchased, leased, or ordered a DCPU before April 2025, the transition period is not long enough to ease the burden of the new rules. Additionally, businesses and individuals who rely on these vehicles to meet immediate and ongoing needs could still face significant disruptions.

This example of a popular model highlights the financial impact: The Toyota Hilux 2.8 D-4D Invincible, priced at £41,960 with CO2 emissions of 233g/km, would be in the 37% bracket, meaning BiK would rise from £3,960 to £15,525 annually. This would lead to employee tax of £6,210 a year for a 40% taxpayer or £3,105 a year for a 20% taxpayer. Such dramatic increases will have significant financial consequences, especially for small businesses and rural workers who depend on these vehicles daily. The pickup tax will hit working people the hardest, from farmers and gamekeepers to builders and plumbers.

We urge the Government to reconsider, and take into account the practical and economic implications of this change, and work with stakeholders in affected industries to find a fairer and more equitable solution.

We request that:

• The Government reverse the decision to classify DCPUs as cars for tax purposes.
• DCPUs remain classified as commercial vehicles for tax purposes.
• Support is given to rural and small businesses that rely on these vehicles for their operations.