Vans are not subject to CO2 emissions banding in the same way as company cars, so there is a standard flat rate of benefit in kind company car tax applied to double cabs and vans.

The benefit in kind for a double cab pick up is:

• £3150

So the company car tax payable on a double cab is:

• £630 a year/£52.50 a month (20% tax payer)
• £1260 a year/£105 a month (40% tax payer)

These represent significant savings given the specification and performance of today’s double cabs compared to what you would pay in company car tax on, say, a diesel engined family hatchback.

Of course, there are limitations with double cab pick ups – unless you get a hard top for the flatbed section you can’t have any secure storage. But if that doesn’t bother you, then double cabs can make an interesting and low tax company car choice.

Editor’s note: Benefit in kind tax is only payable on company supplied vehicles; if you are  a sole trader, or in a partnership, there is no benefit in kind to pay.

You should always take professional advice – such as from your accountant – before making any decisions.