Motability Scheme, very impressive car choices.

[stuartmmcfc]

I didn't think there was a cost to the taxpayer from the scheme?

[Oojermaflip]

That would normally be true, but the government has included Motability in the VAT legislation which means that cars leased through the Motability Scheme also enjoy full tax relief. You can read full details here: https://www.gov.uk/hmrc-internal-manuals/vat-relie...

[BlackLabel]

stuartmmcfc said:

I didn't think there was a cost to the taxpayer from the scheme?

Well the DLA/PIP payments do come from somewhere.

[mph1977]

BlackLabel said:

stuartmmcfc said:

I didn't think there was a cost to the taxpayer from the scheme?

Well the DLA/PIP payments do come from somewhere.

and whether people take the cash or get a motability lease the cost to the tax payer is exactly the same .

[Oojermaflip]

The Motability Scheme enjoys unique VAT reliefs which means that it is 42% cheaper than an equivalent lease available to a retail customer. Without this concession the scheme would be c.20% cheaper so in reality it does cost the tax payer more if they take a car than the equivalent in cash due to the lost VAT revenue. This VAT concession means that the company that operates the Motability Scheme (Motability Operations) makes more than £200m profit per year. Removing this VAT concession would return c£1.5bn over the life of a parliament to the Treasury which could be spent on the NHS or other welfare benefits.

[Oojermaflip]

In addition, Motability Operations and their customers don't pay Insurance Premium Tax, so with VAT and IPT, taking a car through the Motability Scheme costs the tax payer considerably more than just paying the PIP or DLA allowance - particularly if you take a more expensive premium brand car where the VAT saving is even greater.

[CoolHands]

4 Greggs shareholders get some bird for fraud

http://www.dailymail.co.uk/news/article-4697866/Fr...

[South tdf]

CoolHands said:

4 Greggs shareholders get some bird for fraud

http://www.dailymail.co.uk/news/article-4697866/Fr...

Something very different as this was VAT fraud rather than direct abuse of the Motability scheme. Amazing it is still going on as it has been happening for years.