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

ashmere
ashmere Online Community Member Posts: 56 Empowering
edited November 26 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: 

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Also: 

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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: 326 Empowering

    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: 263 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: 685 Pioneering

    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: 1,195 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.

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