HMRC confirms major car tax changes as popular vehicles given 'extremely important' update

1 sources1 storiesFirst seen 7/21/2026Score24Mixed Progress

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HMRC has confirmed that the rules on VAT refunds and Vehicle Excise Duty for double cab pick-ups have not changed, in a welcome relief for drivers.The clarification comes more than a year after most double cab pick-ups were reclassified as cars for company car tax purposes.HMRC updated its Employment Income Manual after businesses and fleet operators raised questions about how the changes introduced in April 2025 affected other taxes.

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The key message is that VAT-registered businesses can still reclaim input VAT on eligible double cab pick-ups under the existing rules.

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TRENDING Stories Videos Your Say VED is also unaffected by the change in company car tax treatment, marking a positive move for manufacturers and businesses.In response, Isuzu UK has confirmed that its entire D-Max range qualifies for a full VAT reclaim for VAT-registered businesses, as well as a zero per cent APR finance offer on its new electric pick-up.The tax changes introduced in April 2025 followed an HMRC decision...

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A: HMRC has confirmed that the rules on VAT refunds and Vehicle Excise Duty for double cab pick-ups have not changed, in a welcome relief for drivers.The clarification comes more than a year after most double cab pick-ups were reclassified as cars for company car tax purposes.HMRC updated its Employment Income Manual after businesses and fleet operators raised questions about how the changes introduced in April 2025 affected other taxes.

B: The key message is that VAT-registered businesses can still reclaim input VAT on eligible double cab pick-ups under the existing rules.