Motorists have been warned owning certain vehicles will become “untenable” under new car tax changes set to be introduced in just months.

Double-cap pick-up trucks will be classified as company cars from July 1, 2024. This means owners will be charged a lot more in benefit-in-kind (BiK) rates with fees set to skyrocket.

Mike Hawes, President of the Society of Motor Manufacturers and Traders (SMMT) warned the changes would “raise costs significantly”.

But, in a further warning, he stressed that the updates would mean owning a double pick-up truck could become “untenable” for many.

He explained: “Double cab pick-ups are critical business tools for many companies and sole operators across Britain, particularly in rural areas and in the construction sector.

“HMRC’s decision to tax them as cars rather than commercial vehicles for benefit-in-kind (BIK) purposes will raise costs significantly, and make them an untenable choice for many.

“The move risks stalling the overall market and its decarbonisation, as businesses will be likely to hold on to older vehicles for longer.”

John Messore, joint owner of Innovation Tax and Mileage Consulting Group suggested the new tax rules could “discourage” take-up of vehicles going forward.

He revealed some owners could be paying more than £13,000 extra per year under the scheme.

Speaking to Fleet News, he said owners with the common Ford Ranger could be forced to splash out £1,000 every month,

He claims the model will fit inside the 37 percent BiK tax bracket meaning fees would stand at £22,200 a year.

A total of 40 percent taxpayers would therefore pay £8,880 a year while those in the 60 percent taxpayer threshold will be charged over £13,320 a year or £1,110 a month.

According to Autocar, fees will be slightly lower but still a major increase in current rates.

They report that a 20 percent taxpayer in England will pay £291 per month for a Ford Ranger while 40 percent of taxpayers will pay £582 per month.

In comparison, a standard charge currently stands at just £60 per month for 20 percent taxpayers or £120 per month for 40 percent taxpayers.

Calling out the new rules, Mike suggested the industry would have no time to react to the news. He commented: “With the new rules due in July, there is insufficient time for industry to adapt to such a major policy change, and the sector believes that it would remain fairer and simpler to use a vehicle’s type approval as the basis for all tax purposes.”

HMRC said the new rules were being introduced as a “pragmatic way of resolving the primary suitability and classification of double cab pickups”.

HMRC added: “It therefore follows that from July 1, 2024, most if not all double-cab pickups will be classified as cars when calculating the benefit charge.

“This is because typically these vehicles are equally suited to convey passengers and goods and have no predominant suitability.”

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Post source: Express