Isuzu Business and Contract Hire
As of April 2025, HMRC has updated its Benefit-in-Kind (BIK) and Capital Allowances (CA) legislation, and this change significantly affects extended and double cab pick-up trucks in the UK.
However, it’s not all change. Despite this shift, Isuzu D-Max pick-ups still qualify for key commercial vehicle benefits, provided they meet the necessary criteria
Plus, despite the change in classification for BIK and CA, VED (road tax) for double and extended cab pick-ups remains at the commercial vehicle rate of £360 per year, offering continued affordability for business users.
Capital Allowances (CA)
Capital allowances allow businesses to deduct some or all the value of the items (such as vehicles) from the profits before tax. Since 1st April 2025, extended and double cab pick-ups are also classified as company cars with regard to CA.
Double and extended cab pick-ups have moved away from the previous classification as ‘plant and machinery’ for CA purposes and instead are subjected to the company car rates, which can vary between 6%, 18% and 100%, based on the vehicle’s CO2
Benefit In Kind (BIK)
HMRC has updated its legislation regarding the classification of extended and double cab pick-ups, with regards to BIK, to be considered as cars as opposed to commercial vehicles since 6th April 2025.
To clarify the taxable benefit is based on:
P11D value
CO₂ emissions
Employee tax rate
Double and extended cab pick-ups have moved away from the previously set flat rate of £4,020 (2025/26 tax year) and instead are subjected to the car BIK rate, which can vary between 3% and 37% based on the vehicle’s CO2. Since 6th April 2025, extended and double cab pick-ups with over 1-tonne payload are subject to company car BIK rates (3%), increasing by 1% annually until 2028.
VAT Reclaim Eligibility
VAT remains fully reclaimable on all double and extended cab pick-ups with a payload over 1 tonne, provided the business is VAT-registered and making fully taxable supplies. This key advantage continues to support businesses in sectors like farming, construction, and logistics.
Also despite the change in classification for BIK and CA, VED (road tax) for double and extended cab pick-ups remains at the commercial vehicle rate of £360 per year, offering continued affordability for business users.
Business Contract Hire (BCH)
Business Contract Hire is the perfect way to hire the Isuzu D-Max of your choice, offering an initial payment, fixed monthly rentals and allowing you to hand back your vehicle at the end. Available to business customers only.
Pay an initial rental of between 1 to 12 monthly rentals. The higher the initial rental, the lower the monthly rentals will be.
Pay regular monthly rentals over the agreed term of between 2 – 5 years.
At the end of your agreement you must return the vehicle to us as there is no ownership option. If you have not exceeded your contracted mileage and have kept your vehicle in good condition in line with the ‘BVRLA Fair Wear & Tear’ guidelines you will have nothing further to pay.
