Being a driver with a disability means you could be eligible for a 50% road tax reduction if you receive the PIP standard rate mobility component. But that’s not all – you might also qualify for a blue badge, offering parking concessions if you don’t already have one. And there are numerous mobility schemes in place to support both abled and disabled motorists lease a new car, too.
In this guide we’ll walk you through all the steps required when applying for a road tax reduction and explain the eligibility criteria.
How do I claim a 50% discount on my road tax?
Eligibility
You may be eligible to claim a 50% reduction on the cost of your road tax for your vehicle, if you receive either the PIP standard rate mobility component or ADP standard rate component (If you live in Scotland). However, it’s important to remember that the vehicle must be registered in the disabled person’s name of the nominated driver’s name.
You unfortunately won’t be eligible for the reduction if you receive the DLA lower rate mobility component.
Steps to claiming your tax reduction
Before you start the application process, it’s worth noting that the only way you can obtain your road tax reduction is by sending the relevant paperwork to the DVLA, Swansea, SA99 1BF.
- You must have a letter or statement from the Department for Work and Pensions that shows you’re PIP rates and the dates your receiving it, with your name and address. Similarly, If you live in Scotland you will need your ADP decision letter from Social Security Scotland that highlights your mobility component rate and dates your receiving it.
- Have your log book (V5C) to hand
- Evidence of a current MOT, a copy of your vehicles MOT history or a MOT certificate will be both be accepted, if you have one.
- A V10 from
- A cheque or payable order (made out to the ‘DVLA, Swansea’) for 50% of the full rate of car tax for the vehicle
Don’t include a copy of your PIP assessment or any other medical information with your application.
In the instance that you have just bought the vehicle and it is not yet registered in your name, you’ll need to download and complete a V62 form and include the green V5C/2 new keeper slip from the logbook with your application.
What to do if the vehicle is not registered to you or the nominated driver
When making your application, you’ll need to include a signed letter from the registered keeper. This letter is crucial as it should specify how the registered keeper knows you and how the intended vehicle will be used, such as for picking up shopping or collecting a prescription.
If you’re concerned that your application might not be processed quickly enough to keep your car taxed, you have the option to pay upfront and apply for a refund later. In this case, you’d still need to provide the same information as mentioned above. Instead of a cheque, you can send proof of payment or include a covering letter stating when you paid.
What is PIP road tax exemption?
The PIP road tax exemption is the discount you receive by providing your Personal Independence Payment documentation as proof of eligibility.
Unlike the 50% road tax reduction, where vehicles remain in the standard taxation class, those that are 100% exempt will be classified under the disabled tax class. However, being exempt from road tax does come with slightly different requirements compared to applying for a tax reduction.
Eligibility
To be eligible for a road tax exemption, the vehicle must be registered in the disabled person’s name or their nominated driver’s name. The vehicle can only be used for the disabled persons needs, so nominated drivers can’t use the vehicle for personal use.
You can apply for the disabled car tax if you already receive the following:
- Higher rate mobility component of Disability Living Allowance (DLA)
- Enhanced rate mobility component of Personal Independence Payment (PIP)
- War Pensioners Mobility Supplement (WPMS)
- Armed Forces Independence Payment (AFIP)
Steps to claiming your road tax exemption
If your applying for you’re road tax exemption for the first time or if you change your vehicle you will need to head down to a local post office that offers vehicle tax services. It’s also worth noting, that if your vehicle is new you should bring your ‘Certificate of Entitlement’ to the car dealership to claim free tax.
If your vehicle is used and this is your first time applying, you must also change the vehicle’s tax class at the post office. You will need to bring the following paperwork:
- Certificate of entitlement to DLA, PIP, AFIP or WPMS
- Vehicle registration certificate (VC5 logbook) or the nominated drivers details (VC5/2)
- A completed application for a vehicle registration certificate (V62)
The good news is that after your initial trip to the post office, you can renew your vehicle the following year for tax exemption from the comfort of your home, either online via the government website or by phone.
Can blue badge holders get reduced road tax?
Yes, most Blue Badge holders are eligible for a reduction/exemption of road tax. However, when applying for a reduction, you must include evidence for example, a letter from the Department for Work and Pensions that shows your PIP rates and the dates you receive it. Unfortunately, using just a Blue Badge alone to apply for either reduced road tax or exemption won’t be enough evidence to be eligible.
FAQs
What benefits can I claim if I have a Blue Badge?
If you or your passenger has severe mobility problems, the Blue Badge scheme allows you to park closer to your destination than you might be able to.
- Parking concession: Blue Badge holders can park in designated disabled parking spaces, often free of charge and with extended time limits.
- Exemption from specific restrictions: exemption from some parking restrictions, such as time-limited parking bays and access to certain pedestrian zones.
- Accessible facilities: access to facilities like wider parking bays, closer to amenities, to accommodate their needs.
Its important to note that specific benefits can vary depending on the local council regulations and Individual circumstances.
Can you get cheaper car insurance if you have a blue badge?
Generally, having a Blue Badge shouldn’t impact your car insurance. However, some insurers may offer discounts since a Blue Badge holder has access to safer and more secure parking, potentially reducing the risk of theft or damage.
Can I get access to a disabled accessible vehicle if I claim PIP?
Yes, if you receive the enhanced rate mobility component of Personal Independence Payment (PIP), you are eligible to join the Motability Scheme. This scheme allows you to lease a new car, scooter, or powered wheelchair, and it covers insurance, maintenance, and breakdown assistance, too, making it a comprehensive solution for your mobility needs.
