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Are we about to move to a situation where there’s at least 2 different Schemes running concurrently?
We all know what’s coming for England and Wales. Scotland is currently expecting the same prices as us but with the current rules until an agreement between the Scottish government and Motability is reached.
So, at the very least, some customers will face 10,000 mile annual allowance and all the rest of the cuts while those on ADP in Scotland will have the same price but old terms.
Motability agents are currently settling the concerns of Scottish customers by confirming there’s no plan to inflict VAT on their pricing, which puts us at a disadvantage.
Then there’s the mysterious exemptions that are supposed to be announced before July 1st, which I’m sure is now known within the company. Could that add Tier 3?
Could the coronation of Andy Burnham throw all of this in the air again by reversing the VAT and exclusions of certain brands? Is this the wildcard that could really cause chaos?
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
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Scottish customers will still have VAT on AP everything else remains the old contract terms
I just had this confirmed on Friday, so I need to order but Tuesday eve to avoid VAT in Scotland
but I completely agreed its a disgrace, I’m in Scotland so exempt from all most all the changes, but it does seem very unfair and no doubt it will be complex to administer
are there going to be 2 sets of AP prices on the website on Wednesday etc
Could a customer in England purchase their motability vehicle from a Scottish dealership and get Scottish terms.
I still don’t see anything on the Motability website, that say’s that ADP claimant’s in Scotland will start paying VAT on AP’s come the 1st July 2026.
I think that we are all looking at it the wrong way and it should be PIP claimant’s that should have their current AP’s and conditions, kept and not the ADP that should change to match PIP Motability’s AP and conditions.
I am confused as to what the purpose of AVE is and what it does, as it’s only supplier is Motability, which we already had.
If you get your allowance from Social Security Scotland
Key details
Your lease package will not change while we continue discussions with the Scottish Government
You can continue to order a new vehicle as normal, in the last three months of your lease
VAT and Insurance Premium Tax (IPT) will still apply to most new leases from 1 July 2026
We will contact you if anything changesAre we about to move to a situation where there’s at least 2 different Schemes running concurrently? We all know what’s coming for England and Wales. Scotland is currently expecting the same prices as us but with the current rules until an agreement between the Scottish government and Motability is reached. So, at the very least, some customers will face 10,000 mile annual allowance and all the rest of the cuts while those on ADP in Scotland will have the same price but old terms. Motability agents are currently settling the concerns of Scottish customers by confirming there’s no plan to inflict VAT on their pricing, which puts us at a disadvantage. Then there’s the mysterious exemptions that are supposed to be announced before July 1st, which I’m sure is now known within the company. Could that add Tier 3? Could the coronation of Andy Burnham throw all of this in the air again by reversing the VAT and exclusions of certain brands? Is this the wildcard that could really cause chaos?
I very much doubt that the final agreement will have a different agreement for the U.K. Government and the Scottish Government.
As far as having a new PM and Chancellor, we can only hope that they reverse most of the proposed changes for Motability.
The one change they will keep is the exclusion of the so called “Premium” makes, as it is vote pleaser for Joe Public, never mind the Far Right.
It’s always been two tier, with tte standard users prices and Armed forces prices.
You could, being Devils Advocate, that the whole scheme us two tier as those on standard mobility rate can’t join the scgeme
As far as I know, VAT has never been devolved into a local policy.
It’s operated by HMRC and Westminster.
I have ASD and thus have difficulty with social and understanding information, written and verbal. I process information in logical blocks, before I reply. Sometimes I'm right and sometimes I'm wrong.
I also have a corneal visual condition, which makes me visually impaired without daytime, or daytime bulbs, among other disabilities/conditions.I still don’t see anything on the Motability website, that say’s that ADP claimant’s in Scotland will start paying VAT on AP’s come the 1st July 2026. I think that we are all looking at it the wrong way and it should be PIP claimant’s that should have their current AP’s and conditions, kept and not the ADP that should change to match PIP Motability’s AP and conditions. I am confused as to what the purpose of AVE is and what it does, as it’s only supplier is Motability, which we already had.
Unfortunately very little is published, I was only told by me case manager there is VAT now too for the AVE scheme users from Wednesday
Could a customer in England purchase their motability vehicle from a Scottish dealership and get Scottish terms.
The issue is not the dealership location, but who pays your benefit
Just to clarify the VAT and IPT situation for Scottish Social Security allowance recipients from 1st July 26, this is from Motability’s dealer website:
So it would appear Q3 pricing will be inclusive of VAT/IPT UK-wide.
The exceptions mentioned being the usual wheelchair user/adapted vehicles concession so those who qualify will probably have to deduct VAT from the listed pricing as it would appear they are including the VAT on their website.
So, whilst ‘pricing’ should be universal all over the UK (with the usual WPMS caveat), the difference for claimants of Scottish Social Security allowances (ADP, CDP and Scottish DLA) will be the non-implimentation of the reduced mileage, reduced tyres, VE103 etc (for now anyway)!
I think it is a piece of nonsense by SS Scotland, the Scottish Government and Motability, that the they all knew that there was going to be a problem . since budget in November 2025 and Big Dave is able to produce information dated the 11th June, stating from Motability the VAT/IPT situation for SSS/ADP/Motability customers in Scotland that VAT/IPT would go live from the `1st July 2026.
jamie1c, got confirmation and Disinformation from the Scottish Government as recently as 23rd June, stating that as of now SSS/ADP customers in Scotland would not be affected by the VAT/IPT changes on 1st July, as they were still in consultation with Motability about the subject
I said on June 25th that “VAT was mostly the responsibility of the U.K. Government, not the Scottish Government”, which all bodies concerned knew.
Only on the 27th June, GreenM was able to tell us, that he was told directly by Motability that VAT/IPT would definitely go live for most SSS/ADP Motability customer’s on the 1st July 2026. Still there was no information of that, made public on the subject to most of us.
Motability customers in Scotland could have had more preparation time, based on the full facts, for the option of ordering their next car, in Q2 or Q3.
Were all these bodies, SSS, the Scottish Government and Motability sitting on their hands and withholding information, knowing fine well, at least as far back as the 11th of June about the VAT/IPT go live date without telling their Scottish claimant’s/customer’s.
I do not see any problem what so ever with Motability showing two AP prices concerning VAT and VAT exception for medical and adaption needs, rather than their customer’s having to sit with a calculator, working out each car with minus VAT AP prices, based on medical and adaption needs.
I think this demonstrates the absolute lack of clarity around this whole transition.
Either all prices include VAT and are the same despite there being no agreement in Scotland to cover the allowance reductions or there will be a SSS AP and a PIP one as well as the War Pension one. Where SSS will be a rate including the current terms PIP will be reduced for the new terms and WPMS reduced again for the different payment.
Oh @Southamman War Pension is a higher weekly payment. If you add 3 years of payment and the AP together both Schemes pay the same total amount, it’s just that the total extra weekly payments are around £1,500 extra over the 3 years and the AP are accordingly reduced.
@BigDave that does confirm conditions but is a lot less clear on the requested payment. As I understand it (which isn’t much) the new prices will be reflected something like this:Agreed Advanced Payment between Motability and Manufacturer
+
Additional taxes
–
Reduction in costs for reduced provision
So, if the agreed AP was £1,000 the taxes are supposed to add £1,100 – so let’s add that (even if it’s a BS number) less the savings that are supposed to cover the increases £1,100 leaves the AP at £1,000.
However if SSS isn’t reducing the costs, does that mean Motability cover the loss, add the taxes to the AP or come up with some mishmash that ends up costing all of us a bit more?
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
I’m expecting that, as with the change of DLA to PIP, tgey will add drop down lijjs to Scottish prices
How much is the increase going to be on AP with VAT and IPT added? Whats the ball park figure for a car with a current AP of £5200
How much is the increase going to be on AP with VAT and IPT added? Whats the ball park figure for a car with a current AP of £5200
Almost impossible to answer until we see Q3 prices, and even then there will be smoke and mirrors.
Technically, the VAT would add £1,040 to the AP, making it £6,240. IPT will only add around £50 a lease so isn’t really a factor, but let’s say £6,300 ball park.
However, I don’t see this happening. The changes already announced (mileage reduction, excess mileage charge etc) will help offset some of that hike.
Furthermore, things will be further muddled by the fact that APs go up and down each quarter anyway, depending on manufacturer deals with Motability.
All in, my prediction is that we will see a continuation of the upward trend in APs, but not to the degree that many are expecting and, as is often the case, there may even be some decreases. Wednesday will be very interesting!
Out of curiosity, when is it expected that – the Scotland Act 2016 allows for the devolution of certain taxes, including “VAT”, to the Scottish Government, which is planned to be assigned to Scotland in the future.
Out of curiosity, when is it expected that – the Scotland Act 2016 allows for the devolution of certain taxes, including “VAT”, to the Scottish Government, which is planned to be assigned to Scotland in the future.
Looking around there are currently no plans to devolve VAT. It’s one of those “you’ll get it when we’re good and ready” things.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
@kezo A good Question, just don’t expect a good answer.
Apparently the Scottish Government is allegedly getting the first 10% of Vat and 2.5 % of the reduced rate. Totaling 4.48% of total U.K. Vat receipts, for Scotland. As the BBC and other bodies would say. I accept no responsibility for the accuracy of these figures.
The SNP is a party and currently a Scottish Government who claimed in 2014that they were ready and able to run Scotland, as an Independent country , but kept postponing taking over PIP and DLA and replacing it with ADP by SS Scotland.
So you are as well answering your own question. You have as much chance of being accurate, as the Scottish Government.
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