Car tax reduction

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Because i have been awarded standard rate mobility im told i can apply for 50% of my husbands car tax as he is my carer.

Would they take this off my payment if i apply for it

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  • Posted

    No, you are entitled to 50% off the Vehicle Tax if you are on PIP Standard Rate.

    You can also apply for a Blue Badge if you are disabled enough as well, this is not affected by PIP either. The Enhanced Rate just means you would be automatically entitled to a Blue Badge.

    Vehicle tax reduction


    You can get a 50% reduction in vehicle tax if you get the PIP standard rate mobility component.

    (Source: Government Website October 2015)

    • Posted

      Just a quick note here...

      VAT Exemption with an EU Blue Badge

      All Blue Badge owners are also EXEMPT from paying VAT (Value Added Tax) for any equipment that is for use by the Disabled person. If you are ever asked for your VAT Exemption number (this is a quite long number), it is also on your EU Blue Badge - you will be asked for this if buying let us say, for example; a Riser/Recliner Chair - the company will ask you to partially fill in a VAT Exemption Form. So, having the Blue Badge at hand, makes it a lot easier than making many phone calls just to find out your VAT Exemption Number.

      Motability Vehicles (via Motability Finance Ltd)

      If you are on the PIP Mobility Enhanced Rate, you are eligible for a vehicle from Motability. The condition of this is you must surrender your PIP Mobility Enhanced Rate to Motability Finance. The payment covers your car over a 3 year lease, but if you only opt for a small vehicle then you will find that you will recieve a partial payment back. If however, you require a larger vehicle than what your Enhanced Rate covers per month, then you will be required to pay a non-refundable deposit, to cover the additional price of the vehicle. You can apply for a grant for this under special circumstances, either through Motability itself or a charity. This deposit maybe required before a car dealer accepts your order, or on the day of release - this is at the discretion of the dealer, not Motability Finance.

      Lease Period

      The Vehicle is leased to you for 3 years, you are fully covered for breakdowns and full Vehicle Tax Exemption.


      You can allocate upto two named drivers on the Insurance, but there are conditions on this.

      Your Age, if under 25 you are not allowed to drive a vehicle with an engine capacity of 2.0 litres or higher.

      How long have you been driving?

      Depending on your age and experience, will depend on the Insurance Excess, make sure you read this, if you are involved in an accident and it was your own fault.

      If a repair is required, you will be asked to take the vehicle to either the dealer or a registered Motability Finance Service Centre.

      Other Benefits included with hiring a Motability Vehicle

      Many customers do not know these additional benefits, but they are available to you. A full detailed listed can be found on Motability's website.

      50% off any Haven Holiday Park holiday - further details are available on the main Motability website.

      3 year Incentive Vehicle Bonus

      On returning your Motability Vehicle at the end of the 3 year lease, you may qualify for the £250 bonus, which depends on the condition of the vehicle on return. It is standard practice if you purchase a new vehicle on the scheme, for the dealer to check your returning vehicle before releasing the new vehicle to you. Normally, you will receive a cheque within 14 days, if you have qualified for this bonus.

      For more details please contact Motability, just google their name.

  • Posted

    As Les63 has said, you can apply to the council for a Blue Badge. However you will have to prove that the applicant has great difficulty in walking. Only the Enhanced rate of Mobility - PIP guarantees a Blue Badge.

    As for the 50% reduction in road tax, this is quite a palava. The computer system that DVLA use is not able to deal with these applications. It has to be done through the post in sending all of the car documents off to them with a cheque.

    I would mention that having  'disabled tax' for the car does mean that the vehicle can ONLY be used for the benefit of the disabled applicant. Otherwise you would have to tax it at the normal rate. Likewise, the Blue Badge can only be used for the benefit of the applicant - the rules of use are quite strict - and rightly so. 

  • Posted

    Passported benefit or scheme PIP component or rate you need to benefit from passporting

    Blue badge parking concessions without further assessment 8 points for mobility activities to get the standard rate of the mobility component, or 12 points to get the enhanced rate and each rate entitles you to the badge

    Carer's allowance for your carer Either rate daily living component

    Carer's National Insurance credits for your carer Either rate daily living component

    Carer's premium for your carer in income-related benefits and the additional amount for carer's in Pension Credit Either rate daily living component

    Child tax credit – disabled child element Any rate or component (payable to your child aged 16 or over)

    Child tax credit – severely disabled child element Enhanced rate daily living component (payable to your child aged 16 or over)

    Christmas Bonus Any rate or component

    Concessionary bus travel pass without further assessment Any rate or component

    Concessionary bus companion card Either rate daily living component

    Council tax discount disregard for severe mental impairment Either rate daily living component

    Council tax discount disregard for live in care worker to allow the disabled resident to claim the discount Only the enhanced rate of daily living component

    Disability premium in Housing Benefit (HB), Income Support, Jobseeker's Allowance (JSA), Council Tax Reduction (CTR) Any rate or component

    Enhanced disability premium in HB, Employment and Support Allowance (ESA), Income Support, Jobseeker's Allowance (JSA), Council Tax Reduction (CTR) Enhanced rate daily living component

    Severe disability premium in HB, ESA, Income Support, JSA, CTR, and additional amount for severe disability in Pension Credit Either rate daily living component

    Disabled child premium in HB Any rate or component (payable to your child aged 16 and over)

    Motability Enhanced rate mobility component

    No non-dependant deductions in HB, ESA, Income Support and JSA Either rate daily living component

    Student eligibility for income-related ESA Any rate or component

    Vehicle Excise Duty (road tax) exemption Enhanced rate mobility component

    Vehicle Excise Duty (road tax) 50% discount Standard rate mobility component

    Working Tax Credit disability element Any rate or component

    Working Tax Credit severe disability element Enhanced rate daily living component

    Working Tax Credit – defining an adult as incapacitated and a child as disabled for the childcare element Any rate or component

    • Posted

      i've put the list of all benefits and what they entitle you to once you got the qualifiying points, the only other thing is you can apply for a consessionary plus bus pass( travel anytime through out the uk) if you are unable to drive. (local bus department)



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