Warning to diesel drivers over tax increase from new DVLA system

diesel pump

Certain diesel owners could be slapped with higher tax under new DVLA rules (Image: Getty)

Certain owners could face major increases within just a matter of months with a new change just around the corner.

Under the new rules from April 2025 as company cars instead of passenger vehicles. 

This will increase the amount of benefit-in-kind contributions road users pay on their vehicles in a potentially

Under the current rules, all pick-ups are subject to a fixed car tax benefit of £3,960. 

However, the ruling means that some diesel models not complying with Real Driving Emissions Step 2 standards will pay an extra four percent. 

double cab pickup truck

Double cab pick-up trucks could be slapped with higher charges (Image: Getty)

Rates will also increase based on CO2 emissions with those emitting more pollution to be massively affected. 

Zero emission double cab pick-ups will pay three percent more while there will be a staggering 37% rise for vehicles emitting 160g/km or more of CO2.

reads: “Following a Court of Appeal judgement, the government will treat double cab pick-up vehicles (DCPUs) with a payload of one tonne or more as cars for certain tax purposes. 

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“From April 1, 2025, for Corporation Tax, and April 6, 2025, for income tax, DCPUs will be treated as cars for the purposes of capital allowances, benefits in kind, and some deductions from business profits.”

However, the existing allowances will still apply to owners who have purchased a double cab pick-up before April 2025. 

Meanwhile, officials have confirmed that transitional BIK arrangements will apply for firms that have taken orders before April 6, 2025. 

It means businesses who have purchased, leased, or ordered a double cab pick-up vehicle since the spring will not be impacted by the changes.

Updates were supposed to come into effect in July 2024 but the previous Conservative Government decided to ditch the policy ahead of its launch.

The move was such as the Society of Motor Manufacturers and Traders (SMMT) warned the move would “raise costs significantly”. 

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