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Understanding Car Tax Discounts for Disabled People in the UK
Written by
Georgina, Founder of Purpl
Published on
December 17, 2024
Hi, I’m Georgina, founder of Purpl Disabled Discounts. I am passionate about helping the disabled community as I understand the financial challenges that come with living with a disability.
There are many areas of support available to you when you claim Personal Independence Payments (PIP) that lots of people are unaware of, and one of those is Car Tax discounts for disabled people. This is part of our series of guides for disabled people in the UK to explain how to make the most out of the available support.
In This Article
- Car Tax Savings for Disabled People
- What is Car Tax?
- What Are Car Tax Discounts?
- Who Qualifies for a Car Tax Discount or Exemption?
- What Kind of Vehicles Qualify?
- How To Apply for a Car Tax Exemption or Discount
- What If You Buy a New Car?
- What Else Should You Know?
- Check Which Vehicles are Exempt from Car Tax
- Final Thoughts
- Frequently Asked Questions
Car Tax Savings for Disabled People
If you’re a disabled driver or you use a vehicle for the benefit of a disabled person, you may be eligible for a car tax discount, or even exemption. The UK government provides these discounts to help reduce the cost of motoring for those who need it most. However, understanding who qualifies and how to apply can sometimes feel confusing.
You can save from 50% up to 100% on your car tax!
Georgina’s Top Disability Savings Tips
Let’s break it down in a way that makes sense, so you can figure out what you’re entitled to and how to claim it.
What is Car Tax?
In the United Kingdom, Vehicle Excise Duty (VED), commonly known as car tax or road tax, is a mandatory annual tax for most vehicles used or parked on public roads. The amount payable is determined by factors such as the vehicle’s registration date, CO₂ emissions, fuel type, and list price. You can find these details on your V5C document (Vehicle Log Book)
For the most accurate and personalised information, it’s worth consulting the official GOV.UK vehicle tax rate tables or use an online tool like the Car Tax Calculator.
What are Car Tax Discounts?
When you live with mobility disabilities you often have no choice but to drive to places, like me, I am sure many of us would swap our disability to not get these benefits and be able to walk in a heartbeat. However, the reality is that we do have these challenges and the government put schemes like this in place to help make life a little easier for us. For disabled people, the cost of Vehicle Excise Duty (VED) or Car Tax can be reduced or completely waived if certain conditions are met.
There are two main levels of support:
- Full Exemption: You pay no car tax at all.
- 50% Discount: You pay half the usual car tax rate.
Who Qualifies for a Car Tax Discount or Exemption?
To be eligible, the vehicle must be registered in the name of the disabled person or someone who uses it for their benefit (such as a carer). You’ll also need to meet at least one of the following criteria:
Full Exemption: You may qualify for free car tax if you receive:
- Disability Living Allowance (DLA): you must receive the higher rate mobility component
- Personal Independence Payment (PIP): you must receive the enhanced mobility component
- Armed Forces Independence Payment (AFIP)
- War Pensioners’ Mobility Supplement
50% Discount: You can get a 50% discount on your car tax if you receive the standard rate mobility component of Personal Independence Payment (PIP).
What Kind of Vehicles Qualify?
Not every car is eligible for a discount or exemption. To qualify, the vehicle must:
- Be used only for the disabled person’s benefit, such as traveling to work, medical appointments, or social activities.
- Be adapted for the disabled driver or passenger if necessary.
- Not be used for non-eligible purposes, such as being lent to a friend or family member for unrelated tasks.
You can only apply for one car at a time under the scheme, so if you have multiple vehicles, choose the one you use most frequently.
How To Apply for a Car Tax Exemption or Discount
First-Time Application
You cannot apply for the first time online. Instead, you must apply at a Post Office that deals with vehicle tax. Follow these steps:
You must include the following with your application:
- a letter or statement from the Department for Work and Pensions that shows your PIP rate and the dates you’re getting it – if you’re getting PIP.
- an ADP decision letter from Social Security Scotland that shows your mobility component rate and the dates you’re getting it – if you’re getting ADP.
- the vehicle log book (V5C).
- a V10 form.
- evidence of a current MOT, if you need one – for example, a copy of your vehicle’s MOT history or your MOT certificate, if you have one.
- an original goods vehicle testing (GVT) certificate, if you need one.
- a cheque or payable order (made out to ‘DVLA, Swansea’) for 50% of the full rate of car tax for the vehicle.
- an insurance certificate or cover note (if you live in Northern Ireland).
Visit the Post Office:
Take the documents to a Post Office that handles car tax. To find a Post Office branch, you can either:
- use the Post Office branch finder – choose ‘Vehicle tax’ from the menu.
- call the Post Office – ask for your nearest branch that deals with vehicle tax.
Inform them you’re applying for car tax exemption or discount due to disability.
Renewals
Once your exemption or discount has been processed for the first time, you can renew your vehicle tax exemption online or by phone.
- Post: If you receive a tax reminder (V11), return the form with your updated documents
- Online: Use the GOV.UK Vehicle Tax Service
- Phone: Call DVLA at 0300 123 4321
Plan Ahead: If your circumstances are about to change, such as switching from DLA to PIP, update your application accordingly.
Georgina’s Top Disability Savings Tips
What If You Buy a New Car?
If you’re purchasing a new vehicle, let the dealer know you’re eligible for a car tax exemption or discount. They can often help with the paperwork to register the car correctly.
If you’re buying a used car, make sure to update the V5C logbook and inform the DVLA about your eligibility.
Stay Organised: Keep copies of all your benefit letters and any other relevant paperwork.
Georgina’s Top Disability Savings Tips
What Else Should You Know?
Blue Badge and Car Tax: Having a Blue Badge does not automatically make you eligible for car tax discounts; eligibility is based on your benefits.
Parking Rules Still Apply: Even with free car tax, you still need to follow standard parking rules unless you have a Blue Badge.
Refunds Are Possible: If you become eligible partway through the year, you’ll automatically get a refund for any full remaining months of vehicle tax when you apply for exemption. The refund will be sent to the address the DVLA have on their records.
Check Which Vehicles are Exempt from Car Tax
You do not have to pay tax on some types of vehicle, for example:
- disabled passenger vehicles.
- mobility vehicles and powered wheelchairs.
Check which types of vehicles are exempt from vehicle tax.
Final Thoughts
Car tax discounts and exemptions are designed to ease the financial burden of driving for disabled people and their families. Whether you’re applying for the first time or renewing an existing exemption, the process is relatively simple and well worth the effort. Have you applied for the Car Tax Discount? Do you have any hints or tips for other Purpl Members? Join the private Purpl members group on Facebook and share your thoughts with the community.
Frequently Asked Questions
I went to the Post Office and they didn’t know anything about it!
For first time applications, you need to go to the Post Office, but it needs to be one that deals with Car Tax. Use the Post Office branch finder – choose ‘Vehicle tax’ from the menu.
What do I need to send to the DVLA?
A letter or statement from the Department for Work and Pensions that shows your PIP rate and the dates you’re getting it – if you’re getting PIP.
An ADP decision letter from Social Security Scotland that shows your mobility component rate and the dates you’re getting it – if you’re getting ADP.
Your vehicle log book (V5C).
A completed V10 form.
Evidence of a current MOT, if you need one – for example, a copy of your vehicle’s MOT history or your MOT certificate, if you have one.
An original goods vehicle testing (GVT) certificate, if you need one.
A cheque or payable order (made out to ‘DVLA, Swansea’) for 50% of the full rate of car tax for the vehicle.
An insurance certificate or cover note (if you live in Northern Ireland).
Can I get this with lower or middle rate DLA?
No, you need to be on the Higher Rate.
Where do I apply online?
Use the GOV.UK Vehicle Tax Service website.
Do I still need to go through taxing my vehicle even if I know I am exempt?
You must tax your vehicle even if you do not have to pay anything, for example if you’re exempt because you’re disabled.
What if I don’t drive? My partner drives me everywhere!
To be eligible, the vehicle must be registered in the name of the disabled person or someone who uses it for their benefit (such as a carer).
Can I transfer my disabled car tax?
No, you are unable to transfer disabled car tax status from one vehicle to another. When you get a new vehicle, or if the registered keeper changes, you’ll need to apply for free tax at a participating Post Office.
How do I get a refund if I’ve only just realised I am exempt from 50%?
If you are eligible for a refund on your car tax you will need to apply first via the V10 form. Once that has been approved you can request a refund for any overpaid car tax by sending a letter to the DVLA, Swansea, SA99 1DZ, with your details and car registration number, your PIP award letter and evidence of the date you became eligible for exemption. If you need help please call the DVLA on 0300 790 6802.
It is worth noting that refunds are only issued for whole months of unused tax, so you won’t get a refund for part of a month.
Related Disability Guides and Advice
How to Apply for a Disabled Person’s Railcard
Breaking Down the Accessibility Barriers for Disabled People
How to Apply for a Disabled ID (DID) Card
