Maximise Your Tax Savings Before April 2025: Double Cab Pickup Ford Ranger Tax Changes Explained​

Major Tax Changes for Ford Ranger Owners – Act Now

If your business relies on a double cab pick-up like the Ford Ranger, now is the time to pay attention. From April 2025, the government is reclassifying double cab pick-ups for tax purposes, removing the 100% first-year deduction and increasing tax costs for both businesses and employees.

Right now, businesses can fully expense a pick-up’s cost in the year of purchase, and employees benefit from lower Benefit-in-Kind (BIK) rates.

But after April 2025, these tax breaks will be replaced with higher costs, meaning more tax paid upfront and over time.

To avoid thousands in extra tax, businesses need to act now. At Group M53, we have a range of Ford Ranger models ready to secure before the deadline. Keep reading to understand the full impact and how to make the most of the current tax benefits.

Understanding the Tax Changes

Reclassification of Double Cab Pick-Ups

Currently, double cab pick-ups like the Ford Ranger are classified as light commercial vehicles (LCVs), allowing businesses to deduct 100% of the vehicle’s cost from taxable profits in the year of purchase. This favourable tax treatment has helped businesses reduce upfront tax liabilities and improve cash flow.

From April 2025, these vehicles will be reclassified as passenger vehicles, removing the 100% first-year deduction and replacing it with a much lower 6% per year capital allowance. As a result, businesses will no longer be able to fully offset the cost in year one, leading to higher tax liabilities over time.

The Financial Impact

The change means businesses will no longer be able to fully offset the cost of a new pick-up against taxable profits in the year of purchase, leading to significantly higher tax liabilities.

The biggest issue? Delaying your purchase could cost you thousands in extra tax.

Over time, businesses will still recover the vehicle cost, but at a much slower rate, making new pick-ups far less tax-efficient.​

Buying a £45,000 Ford Ranger before April 2025

• Pre-tax profit: £45,000
• Year-one deductible expense: 100% of £45,000
• Taxable profit: £0
• Corporation tax saved: £11,250 (£45,000 × 25%)

Buying the same £45,000 Ford Ranger after April 2025

• Pre-tax profit: £45,000
• Year-one deductible expense (6% of £45,000): £2,700
• Taxable profit remains: £42,300
• Corporation tax owed at 25%: £10,575 (£42,300 × 25%)

How Will This Affect Ford Ranger Owners?

The two biggest changes relate to Benefit-in-Kind (BIK) tax for company vehicle users and the capital allowances available for businesses purchasing these vehicles.

1. Increased Benefit-in-Kind (BIK) Tax

For employees using a Ford Ranger as a company vehicle, tax costs will increase dramatically.

Currently, employees using a double cab pick-up for personal and business use benefit from a low, fixed rate tax that has made pick-ups a cost-effective company vehicle option. From April 2025, this will change, leading to higher cost of providing company vehicles.

• Current BIK Tax: Fixed at £3,960 per year - a cost-effective option
• From April 2025: BIK will be based on list price and CO₂ emissions, just like company cars.
• Example Impact: A £45,000 Ford Ranger could fall into the 37% BIK tax bracket, pushing the taxable benefit to £16,650 per year - adding thousands in extra tax for employees.

2. Reduced Capital Allowances

• Now: Businesses can fully deduct the cost of a Ford Ranger in the first year, reducing tax bills by up to £11,250.
• From April 2025: Only 6% per year will be deductible, meaning higher tax bills upfront and less tax relief over time.

What This Means for Businesses and Drivers

The Ford Ranger has long been a go-to vehicle for businesses, combining rugged capability with practicality and tax efficiency. But with the way these vehicles are taxed changing, higher costs can be expected for both businesses and company vehicle users.

✔ Higher tax costs for company vehicle users
✔ More tax liabilities for businesses due to reduced capital allowances
✔ Increased fleet running costs with fewer tax incentives
✔ Reduced cash flow benefits making new pick-up purchases less tax-efficient

Act Now to Secure Your Ford Ranger at Group M53

The good news? There’s still time to avoid these extra costs - but only if you act before April 2025.

At Group M53 in Ellesmere Port and Birkenhead, we have a range of Ford Ranger models available now, along with flexible finance options to help you secure your vehicle before the tax rules change.

☎ - Contact Group M53 today to discuss your options and make sure you’re not caught out by the new tax rules!