Are Crew Vans Commercial Vehicles?

Are crew vans commercial vehicles? This guide will clarify if HMRC considers crew vans commercial vehicles. 

Picture this – you’re looking for a new vehicle for your business that can comfortably transport your kit and crew with ease.

You do your research and a crew cab van seems to fit the bill. But you’re not completely sure whether they’re considered commercial vehicles for tax purposes.

It’s a tricky topic – especially given the recently announced tax changes for double-cab pickup trucks.

But don’t worry, we’re here to finally answer the question on everyone’s mind: are crew cab vans still considered commercial vehicles?

Let’s dive in.

 

 

Are Crew Cab Vans Considered Commercial Vehicles?

Yes – if certain boxes are ticked.

At the time of writing, crew cab vans are still considered commercial vehicles – not cars –  for tax purposes as long as they meet HMRC’s criteria.

No plans have been announced yet to change this. So, anyone looking to purchase a new crew van can rest assured they aren’t affected by the April 2025 tax changes.

However, as we alluded to above, certain boxes need to be ticked to ensure a crew van is 100% considered a commercial vehicle.

Let’s dive deeper into what those boxes are.

 

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What Does HMRC Consider A Commercial Vehicle?

In the eyes of HMRC, a commercial vehicle is a vehicle used for business purposes. For example, transporting goods, providing services or carrying equipment.

If a vehicle is considered commercial, it’ll receive special treatment for three key tax types: VAT, Corporation Tax, and Benefit In Kind (BIK) – all of which have different guidelines.

In general, a commercial vehicle must fall under the following criteria provided by HMRC:

  • The vehicle must have a gross weight of 3.5 tonnes
  • It must be able to carry at least one tonne of cargo
  • It must be used for business purposes only

Most crew vans typically have a GVW of 3.5 tonnes and a payload over 1000 kg, so they meet the first two points (always double-check these figures in the vehicle specification though).

However, if a van is used outside of work, you’ll need to pay an additional tax called ‘Benefit In Kind’.

 

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What Is Benefit In Kind (BIK)?

Benefit-in-kind is a tax for employees who receive benefits or perks on top of their salary. This includes company vehicles.

There are two classifications for BIK for vehicles: one for cars and one for vans.

For company vans, BIK is a flat rate charge based on whether you use it for personal trips.

For cars, BIK uses a formula based on the vehicle’s CO2 emissions, P11D value, list price, and your tax band (i.e. 20%, 40%, 45%).

Company car tax calculators are available to work out the exact amount. Generally speaking, though, BIK for cars is higher than for vans.

BIK only applies if the van is being used outside of work. If the van is used exclusively for work – or is considered a pool van (used by more than one employee) – BIK does not apply.

But you must keep clear records to be able to prove this.

 

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Crew Cab Vans vs Crew Cab Pickups: Tax Implications From April 2025

Under the current tax regime, double-cab pick-up trucks are categorised as vans.

However, from April 2025, they will be reclassified as cars, affecting benefit-in-kind (BIK) taxation and capital allowances.

Accountants Thompson Jenner have put together the following figures as an example of what this change might look like:

 

 

For Vans (Pre-April 2025 For Double Cab Pickups):

  1. Van BIK Rate: £3,960
  2. Van Fuel BIK Rate: £757
  3. Assessable income: £3,960 + £757 = £4,717

 

Tax cost for Higher Rate Taxpayer (40%): £1,887

 

 

For Cars (From April 2025 For Double Cab Pickups)

Under the April 2025 regime, a double cab pick-up treated as a car attracts rates based on CO2 emissions and the vehicle’s list price.

Most DCPUs will attract the highest CO2 emissions rate of 37%.

  1. Car BIK Rate: £40,000 list price x 37% = £14,800
  2. Car Fuel BIK Rate: £27,800 fixed fuel multiplier x 37% = £10,286
  3. Assessable income: £14,800 + £10,286 = £25,086

 

Tax cost for Higher Rate Taxpayer (40%): £10,034

 

That’s an increase of over £8,000 in taxation per year just from a change in government policy.

Some transitional arrangements will be in place for existing supplies.

Double cab pickups purchased, leased, or ordered before April 5th 2025 will fall under old rules until the vehicle is disposed of, the lease expires, or April 5th 2029 – whichever comes first.

Crew cab vans will remain commercial vehicles for BIK and will not be affected by any of these changes.

However, these figures illustrate the importance of ensuring any vehicle used for business purposes meets HMRC’s commercial vehicle criteria.

Businesses should review their fleet to ensure compliance with these regulations, as misclassification can lead to unexpected tax liabilities.

Consulting a tax professional or referring can provide clarity specific to individual circumstances.

 

 

Summary

 

Are Crew Vans Commercial Vehicles?

 

So, are crew vans commercial vehicles?

To summarise:

  • Yes, unlike crew cab pickup trucks, most crew vans are still considered commercial vehicles by HMRC.
  • No, crew vans are not considered cars in most cases.
  • As long as your crew van has a gross vehicle weight of no more than 3.5 tonnes and a payload of 1,000+ kg, it’s considered a commercial vehicle for VAT purposes.
  • If your crew van is used outside of work, you will also have to pay Benefit In Kind tax – but this will be on a reduced rate compared to pickup trucks because they are still considered vans.

 

As we’ve already emphasised, taxation on commercial vehicles is very much a case-by-case matter.

We have given you some general guidelines published by governing bodies and tax experts, but you will need to consult a chartered accountant for a definitive answer based on your unique circumstances.

Hopefully, this guide has helped clear things up a bit. It’s a complicated topic, though, so if you have any further questions, please feel free to leave a comment below.

Take care and we’ll see you in the next one!

 

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Disclaimer: Information in this guide has been sourced from external sources and should not be considered financial advice. We recommend consulting a chartered accountant before making any commercial decisions around purchasing a vehicle for tax purposes.