If you receive certain benefits, you might be eligible for free vehicle tax. Here’s what you need to know about the requirements and process.
Wales: The Department for Work and Pensions (DWP) has some good news for certain drivers. If you’re receiving one of six specific benefits, you might not have to pay vehicle excise duty. This is a great way to save some cash!
So, what benefits are we talking about? Well, if you get the higher rate mobility component of disability living allowance (DLA), enhanced rate mobility component of personal independence payment (PIP), or the enhanced rate mobility component of adult disability payment (ADP), you could be in luck.
There are a few more benefits that qualify too, like the higher rate mobility component of child disability payment, war pensioners’ mobility supplement, and armed forces independence payment. Just remember, the vehicle needs to be registered in your name or your nominated driver’s name.
But there are some rules. The vehicle can only be used for your personal needs, not for the nominated driver’s personal use. Plus, you can only have one vehicle exempt from tax at a time. If you have multiple vehicles, you’ll need to pick which one gets the exemption.
When you’re ready to register for vehicle tax, you’ll need to apply for the exemption. First-time claims can be processed at a Post Office, and you’ll need to do this every time you change vehicles. If you’re on the standard rate mobility component of PIP or ADP, you can get a 50% discount on your vehicle tax.
Just a heads up, the vehicle must be registered in the name of the disabled person or their nominated driver. If you’re getting the lower rate mobility component of DLA, unfortunately, you won’t qualify for any reduction.
When applying, make sure to include a few important documents. You’ll need a letter from the DWP showing your PIP rate, an ADP decision letter, the vehicle log book, a V10 form, and proof of a current MOT if needed. Don’t forget to include a cheque for 50% of the full car tax rate and an insurance certificate if you’re in Northern Ireland.
