Removal of premium vehicles not the worst bit to hit Motability customers

ashmere
ashmere Online Community Member Posts: 64 Empowering
edited November 2025 in Transport and travel

From MSE Forum

The removal of the premium vehicles is not the worst bit to hit Motability customers. From today's budget document: 

h9fhu6aegcbv.png


Also: 

hgr83pmwfda3.png

Source: 2025 Budget:  https://assets.publishing.service.gov.uk/media/6926eb102a37784b16ecf525/E03444720_Budget_2025_Web_Accessible.pdf
So, an 'AP Tax', Insurance Premium Tax and a lease mileage reduction!Thank you Chancellor - NOT. 

Comments

  • jonf
    jonf Online Community Member Posts: 386 Pioneering

    wow does that mean that people with Motability vehicles using them now will have to pay an increase ??

    glad that I don’t have but I was considering a Motability vehicle.

    At least with my own vehicles I can do as I please within reason

  • onlymeagain
    onlymeagain Online Community Member Posts: 265 Empowering

    20% on top of payments? So as well as our mobility element of PIP going to Motability we will also have to pay 20% VAT to Motability, which I assume will come from our Care element or other benefits we get.

  • Trevor_PIP
    Trevor_PIP Online Community Member Posts: 1,225 Championing

    I have not had a motability car. It reads to me there will be 20% VAT on Advance Payments, then your PIP Enhanced Mobility payment for the lease of the vehicle. Insurance Tax at 12% is added and a mileage limit reduction is applied.

    So obviously the differences are tax on the Advance Payment and Insurance, plus the mileage limit reduction. This reduction could be halving the original mileage limit to 10,000 miles a year like a normal leased vehicle. 5p a mile after that. I am guessing abuse of they scheme may have caused some of this...

  • rubin16
    rubin16 Scope Member Posts: 1,434 Championing

    I'm actually happy i'm not allowed to drive, although I wouldn't put it past the government to introduce a walking tax at this point or start charging us for oxygen.

  • SheffieldMan1976
    SheffieldMan1976 Posts: 291 Connected
    https://forum.scope.org.uk/discussion/comment/1086288#Comment_1086288

    Don't give them ideas mate.

  • karrine
    karrine Online Community Member Posts: 5 Contributor

    I have just signed up for my first car as my car of 10 years was written off and I could not afford to replace it. I have signed up and the changes do not apply to me as Motability have frozen them if you sign up before 1st July 2026. I did not have to pay an up front fee so no 20% advance payment tax. There are a lot of cars with zero advance payments to choose from. Its the Insurance premium tax at 20% that it might affect scheme users in the future but for now mine is frozen until my lease runs out. I can not wait to get it and get my freedome back. Ive been stuck indoors for a month so far.

  • Wibbles
    Wibbles Online Community Member Posts: 3,295 Championing
    edited March 5
    https://forum.scope.org.uk/discussion/comment/1086218#Comment_1086218

    No - its a one off - the initial downpayment will be increasing by 20% - so if you choose a car with a £1000 downpayment - it will increase to £1200 !!

    If you choose a car with zero downpayment - it will make no difference to you.

Categories