The government has done a U-turn on a plan to classify double-cab pick-ups as cars for tax purposes.

HM Revenue & Customs announced on February 12 2024 that it would close the ‘loophole’ that allowed double-cab pick-ups that can carry payloads over 1,000kg to be classed as goods vehicles for tax purposes.

Owners of these vehicles were set to face significantly higher tax bills as a result.

It meant a driver could end up spending £5,376 more on company car tax per year under the rules.

However, just seven days on from announcing the plan, the government has scrapped it and has confirmed it will not be introducing the change.

In a statement, HMRC said it had “listened carefully to views from farmers and the motoring industry on the potential impacts of the change in tax-treatment”.

It added that the plan would not be “consistent with the government’s wider aims to support businesses, including vital motoring and farming industries”.

Double-cab pick-ups will continue to be treated as goods vehicles for tax purposes.

Double-cab pick-ups that can carry a payload of less than 1,000kg – such as the Ford Ranger Raptor – will also continue to be classed as cars as before.