zero rated tax when buying disabled car

chopperharris

What are the paperwork thats required for a dealer to get get a car zer rated for vat for the disabled , this is for a passenger so no driving , chair lifts or lifting mods needed?

noh

chopperharris wrote: »

What are the paperwork thats required for a dealer to get get a car zer rated for vat for the disabled , this is for a passenger so no driving , chair lifts or lifting mods needed?

The car can only be zero rated if it has had substantial and permanent modifications.

From http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/DG_10028495

"Motor vehicles
If you are a wheelchair or stretcher user, you should not have to pay VAT when you buy a motor vehicle that has been substantially and permanently adapted for your personal use. A wheelchair user is defined as anyone who has to use a wheelchair - powered or manual - in order to be mobile.
Any adaptation work that is done on an unadapted vehicle to make it suitable for a disabled person's condition, whether or not that person is a wheelchair user, is also eligible for zero-rating. However, there is no VAT relief on the purchase of an unadapted vehicle."

chopperharris

This I already know , thanks noh.Even the dealers dont know the same between them , it wont be from a motability franchised dealer.

OH is always a passenger and the only aid needed is an electrically adjusted seat , but can you even class that as a modification now that lots of cars have them as standard or an option.

Can use hands but needs a multiple memory based adjustable seat for broken back support/entry , and perhaps a swivel seat for ease of exit if she is up for the idea...ie stubborn passenger doesnt like to be classed as disabled or even use the D bays unless its V quiet I think you get the idea.

I cannot remember what paperwork is needed on purchase for the dealer end , is it only the same DWP papers for road fund?

the last car we bought a few years ago was 100 percent zero rated , I have to look out the papers or apply for new ones if they are out of date hence my question.

chopperharris

sorry double post

JasonLVC

Here's the official notice on disabled adaption of cars.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000128

The keys words are SUBSTANTIAL and PERMANENT adaptions. Have a look at section 3 first.

If all you are having done is having electric seats fitted - it may not be seen as suitably unique enough to suit a disabled person. For instance, an automatic gearbox is for 'general' use and although much easier for a disabled driver to have automatic gears, it is also a general option for anyone, not just disabled people.

Having electric seats is fairly common on mid/top range cars anyway. If the seat had some sort of swively base to allow a disabled person to sit and then swivel into position that would be seen as unique to disabled persons - perhaps combine a swivel with electric to get over any confusion.

Ultimately, you can issue a zero rating ceritificate (an example is in the Notice I've linked you to) but it is up to the car seller to accept it or not. If they do not want to accept it, go see another dealer instead as they are not obliged to accept your cert- as it is they who are liable for any VAT should they get a VAT visit and HMRC decide the works should not have been treated as adaptions and zero rated.

Last year there was a big disabled car scam involving members of the British Paralympic team who scammed a few million pounds 'adapting' ferrrari's and porsche's by putting litting knobs on the steering wheel and so getting them zero rated, then they removed the knob and then sold on at huge profit - so HMRC and dealers may be a bit twitchy about 'electric seats' as it doesn;t sound like it would make all that much difference - but I've no real view on this as these things are usually down to best guess and dealer discretion.