VAT exemption for people with disabilities - Page 2

Dispirited · 23rd May 2008, 08:52

There was a letter in Money Mail a couple of weeks ago... hope this helps somebody.

Q. 'I'm over 65 and have difficulty getting round the house. I understand I might be elligible for reduced VAT on work done to my house to help me. How do I claim this?

A. You are correct. Rather than pay 17.5 % VAT you only have to pay 5%.
Complete a declaration form to show you are elligible. Call the Charities and Disabled Reliefs Helpline: 0845 302 0203

buzby · 23rd May 2008, 09:37

Typical of the Mail, only telling part of the story. For a start, this isn;t some 'self declaration' that you make to the contractor doing the work - you have to obtain a certificate of disability, (usually from DHSS or whatever they're calling themselves now) the criteria for this is pretty strict, and has been known to include an assessment by one of their medical doctors (not your own GP) to support the claim.

aperson · 23rd April 2009, 17:06

Specifically regarding NEW motor vehicles (and yes that can include a caravan).
For persons who are registered disabled (No not just a blue badge holder -there is a major difference).
These may be purchased VAT free irrespective of cost of modifications, this can be as little as a steering wheel knob and auto gearbox, depending on the disabled persons ASSESSED requirement.
All further servicing and repairs are also VAT free whilst the vehical retains a customs and excise road fund classification of "disabled" and the neccesary certificate is signed and handed over at point of payment.

An auto gearbox on its own does NOT qualify as this is a standard option.

The assessed requirement is to stop someone who through e.g. natural aging, decides they need a steering wheel knob from claiming.

Caravans have to have been modified by the dealer for disabled use prior to sale.
Group 12 Schedule 8 of the VAT act 1994 is the relevant legislation.

JonCris · 23rd April 2009, 17:14

Does a disabled person on the higher rate with a certificate automatically qualify for a VAT free purchase of a vehicle even without mods

aperson · 23rd April 2009, 17:56

NO. Specifically does not. The idea is that you do not end up at to much of a disadvantage as a result of being forced to buy an adapted vehicle. If you are on higher rate and do not need adaptations then the MOTABILITY scheme is great for you - this actually saves you way more than the VAT.
If like me you need a £30,000 motor car motability do not want to know you so this VAT scheme helps a little.

JonCris · 23rd April 2009, 19:49

Thanks - Mobility! I have heard a lot of horror stories regarding substantial demands for payment after the vehicle is returned to the dealer at the end of the contract

aperson · 24th April 2009, 10:01

Not so true now. Mileage used to be big issue as limited to something very small(6000 pa I believe) and charged 10p per mile over - absolutely useless to those of us who need to drive where others walk.
Now altered to allow (I believe) 10,000 per annum.
As fully comp. insurance is provided as part of the deal all you need to remember is to get any dents etc. fixed on insurance just before car goes back. If you need more miles then you are permitted to purchase a car yourself and are exempt several of the HP laws, meaning you do not need 20% deposit and can pay back over eg 5 years instead of 5 - still worth talking to motability registered dealer as they know all about this.

JonCris · 24th April 2009, 14:01

Just to confirm are you saying that if a person, although on the highest rate & not needing any adaptations, goes into a dealer & orders a new car they WILL have to pay VAT ..........or not

aperson · 25th April 2009, 11:06

They WILL

JonCris · 25th April 2009, 16:25

What if you fit a steering knob? which is something you seem to imply might qualify your exemption for VAT

Bookworm · 25th April 2009, 16:57

Quote:

Originally Posted by aperson

As fully comp. insurance is provided as part of the deal all you need to remember is to get any dents etc. fixed on insurance just before car goes back.

I have to disagree with that, or qualify it at least. Unless the dent is a big one (as in having bashed something) then minor bumps and scrapes, chips, dents from s/one banging their door against yours (don't you love 'em?

) and such do not have to be dealt with, they will be treated as standard wear and tear. In fact, Mota specifically tells you this when it comes to change over, asking you NOT to try and fill/remove/hide them as you could do worse damage to the bodywork.

Once the car is returned to the dealership, it will get processed and then sent straight to auction, so they really don't give a toss about minor damage. My last one had 2 substantial chips on the windscreen, a good few scrapes on the back bumper and on the driver's side (walking stick etc) and conkers damage all over the bonnet and roof, the guy didn't even blink and I got my £200 bonus back within 1 week.

aperson · 27th April 2009, 10:18

Thanks Bookworm. Suspect it depends on dealer.
Re steering wheel knob.
If you are Registered disabled you are entitled to be assessed for required aids by an occupational therapist or in this area (Bristol) by a Disability Living centre assessor. If the stated requirement is a steering wheel knob then yes it does. BUT be aware that you need to inform medical Section DVLA and you will be unable to drive any vehicle not adapted as per your statement

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