Will the new tax for EV drivers affect Motability customers?published at 15:00 GMT 27 November
Nikki Fox
Disability correspondent
Image source, bbc
Robert, from Tauton, says his wife has an electric car under the Motability scheme to promote independent travel. Will the announcement of the new mileage tax on electric vehicles be a barrier to taking journeys for her, or is she exempt?
The fact EV drivers will soon have to pay 3p a mile certainly made the headlines yesterday – but there was no mention at all about whether disabled people will be exempt from that. We’ve put a call in to Motability and they confirm it just wasn’t made clear in the Budget – so we’re all trying to find out.
What you may have missed yesterday – because, indeed, the chancellor did not actually spell it out in her speech – is that she is bringing in some significant changes to the Motability scheme: Not just banning so-called ‘luxury’ cars – which she did mention – but lifting the tax exemption on the insurance included in the lease and adding VAT to the advanced payment a disabled customer may have to pay on a vehicle.
I’m sure your wife will have had to make an advanced payment, because EVs are some of the most expensive cars available on the scheme. As you know, that’s out of your own pocket.
Reducing what the chancellor called these “generous taxpayer subsidies” is the biggest change since Motability was first introduced in the 1970s.
And Motability have told us it means the scheme will need to change. They’re not going to take any steps straight away, but they’ve acknowledged that any increase in the cost of a lease “could have a significant effect on disabled people’s independence and daily life”.
So not great news for Motability customers, I’m afraid.
