Why This Still Matters — Even If You’ve Already “Dealt With It”
Many businesses believe they’ve already addressed the 2025 pick-up truck tax changes. Vehicles were ordered early, accountants were consulted, and decisions were made ahead of April.
However, as we move deeper into 2025, we’re seeing a second wave of issues emerging — particularly for fleets that tow trailers.
The reclassification of many double-cab and extended-cab pick-ups as company cars for tax purposes hasn’t just affected Benefit-in-Kind (BIK). It’s also increasing scrutiny around:
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payload,
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towing modifications,
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vehicle use,
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and driver compliance.
For organisations that tow plant, welfare units, traffic management trailers, horse trailers, or specialist conversions, this is where problems can quietly build.
Quick Recap: What Changed in April 2025?
From 6 April 2025, most double-cab and extended-cab pick-ups are treated as company cars (not vans) for:
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Benefit-in-Kind (BIK)
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Capital Allowances
This follows a Court of Appeal ruling which found that many of these vehicles are used for mixed passenger and load purposes, rather than being primarily goods vehicles.
🔹 Single-cab pick-ups remain unaffected
🔹 VED (road tax) remains at the commercial rate
🔹 VAT reclaim may still apply if payload exceeds 1 tonne and business use conditions are met
👉 HMRC reference:
GOV.UK – Company cars and vans: tax and reporting obligations
Where Towing Fleets Are Now Getting Caught Out
1. Payload erosion after modifications
Many pick-ups passed the 1-tonne payload test when they left the factory — but not necessarily after:
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heavy-duty tow bars,
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reinforced rear suspension,
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additional electrics,
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toolboxes or racks,
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trailer braking systems.
In real-world use, we’re seeing vehicles that are:
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still towing legally,
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but no longer clearly compliant for VAT or classification purposes.
This creates tax risk, not just safety risk.
2. BIK is now emissions-led — and towing doesn’t help
BIK rates now follow car-style CO₂ bands, from 3% up to 37%.
Pick-ups used for towing:
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are typically heavier,
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often diesel,
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and sit in higher emission brackets.
That means:
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higher taxable benefit for drivers,
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increased employer costs,
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and closer HMRC attention on “is this really a car or a work vehicle?”
3. Capital allowance expectations haven’t caught up
Some businesses are still assuming towing-related upgrades can be written off quickly.
Under the new rules:
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capital allowances are more restrictive,
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deductions may need to be spread over longer periods,
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and post-April modifications may not receive the same treatment as the base vehicle.
👉 HMRC reference:
GOV.UK – Capital allowances: cars
4. Vehicle classification ≠ towing compliance
A key point that often gets missed:
Tax classification does not override towing law.
Even if a pick-up is now taxed as a car, drivers must still comply with:
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maximum towing capacity,
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Gross Train Weight (GTW),
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trailer braking requirements,
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correct licence entitlement (B+E),
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and roadworthiness standards.
This is where enforcement action often starts — at the roadside, not the tax office.
Transitional Rules: Helpful, But Not a Free Pass
Vehicles ordered or purchased before 6 April 2025 can retain the old commercial tax treatment until:
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disposal,
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lease end,
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or 5 April 2029 (whichever comes first).
However, transitional protection:
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does not remove responsibility for safe towing,
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does not protect against payload breaches,
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does not excuse untrained drivers.
We’re already seeing cases where fleets assumed “grandfathering” covered everything — and it doesn’t.
Is a Pick-Up Still the Right Towing Tool?
For some businesses, yes — but not automatically.
If towing is occasional, a double-cab pick-up may still make sense.
If towing is core to your operation, it may now be worth reviewing:
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dedicated commercial vans,
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chassis cabs,
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purpose-built tow vehicles,
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or commercial derivatives designed to retain van classification.
This is both a financial and a risk-management decision.
What Fleet Managers Should Be Doing Now
As we move through 2025, this checklist is becoming increasingly important:
✅ Review payload after all modifications
✅ Confirm actual towing weights in real use
✅ Check driver licence entitlements
✅ Audit who tows what — and how often
✅ Update towing risk assessments
✅ Ensure drivers have recent towing training
✅ Align tax advice with operational reality
Why Training Matters More Than Ever
With pick-ups now under greater scrutiny, poorly trained drivers are a liability — financially and legally.
At Towing Solutions, we’re seeing increased demand from:
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utilities,
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construction,
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highways,
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traffic management,
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and fleet operators
who recognise that towing competence is no longer optional.
Training provides:
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documented evidence of due diligence,
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reduced incident risk,
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better compliance outcomes,
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and stronger defence if something goes wrong.
Final Thoughts: Tax Changes Expose Weak Towing Practices
The pick-up truck tax changes of 2025 didn’t create towing risk — they exposed it.
For businesses that tow:
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heavy trailers,
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specialist equipment,
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or operate across multiple sites,
now is the time to ensure your vehicles, drivers, and procedures all stand up to scrutiny — not just from HMRC, but from DVSA and insurers too.
Need support reviewing towing risk or driver competence?
Towing Solutions delivers professional, compliant training across the UK, including:
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Trailer Safety & Awareness
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Loading & Securing
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Fleet towing assessments
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On-site and mobile training
🔗 Explore our Trailer Safety & Awareness courses:
https://www.towing-solutions.co.uk/industry-courses/trailer-safety-awareness