Correct no VAT. Don’t worry Theo they do make a handsome profit.
The Motability scheme
Published
December 7, 2018
Full report
The Motability scheme
The National Audit Office (NAO) has found that the Motability scheme1 provides an excellent service to customers, but has long operated in a protected environment, supported by government, which has made maintaining high performance less challenging.
In its report, published today, the NAO states that Motability Operations – which administers the scheme on behalf of the Motability charity – has made high levels of unplanned profit and holds more in reserves than other car leasing companies. Furthermore, given its financial model, it is likely to continue to generate significant surpluses.
The Motability scheme enables eligible disabled people to exchange certain mobility allowances for the lease of a new car, powered wheelchair or scooter2. The Motability charity is responsible for strategic direction and oversight, while Motability Operations Limited is responsible for operating the scheme through an exclusive seven-year rolling contract. The scheme is the only recipient of the direct transfer of mobility allowances from government and received tax concessions worth up to £888 million in 2017. This money contributes to customers accessing lease prices that are 44% lower on average than competitors.
Joss
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