All Articles
8 min read
Understanding Car Tax Discounts for Disabled People in the UK
Written by
Georgina, Founder of Purpl
Published on
December 17, 2024
Did you know that if you receive Personal Independence Payment (PIP), you may qualify for a PIP car tax reduction or even full road tax exemption? Our founder, Georgina, is passionate about helping disabled people claim the benefits and support they are entitled to. Life with a disability can be expensive, and every saving makes a real difference — especially when it comes to running a car.
This guide is part of our series on support available to disabled people in the UK. Today, we’ll explain how you can access a road tax reduction or exemption, who qualifies, and exactly how to apply.
In This Article
- PIP Car Tax Reduction and Savings for Disabled People
- What is Car Tax?
- What Are Car Tax Discounts and Relief Options?
- Who Qualifies for a Road Tax Exemption or Reduction?
- Which Vehicles Qualify?
- How to Apply for PIP Car Tax Exemption?
- What Happens If You Buy a New Car?
- Additional Things You Should Know
- Check Which Vehicles are Exempt from Car Tax
- Final Thoughts
- Frequently Asked Questions
PIP Car Tax Reduction and Savings for Disabled People
If you’re a disabled driver or you use a vehicle for the benefit of a disabled person, you may be eligible for a If you’re a disabled driver — or someone who uses a vehicle on behalf of a disabled person — you may be eligible for a PIP car tax reduction. This could mean saving 50% or even 100% of your annual vehicle tax.
The UK government offers road tax relief for disabled people to ease the cost of driving. But understanding who qualifies, which vehicles are covered, and how to apply can feel confusing. Let’s break it down clearly.
Purpl Tip: Always check your award letter carefully. Even if you think you’re not eligible, the wording on your PIP decision letter often makes it clear whether you qualify for a discount or exemption.
What is Car Tax?
In the UK, Vehicle Excise Duty (VED), also known as road tax, is a legal requirement for most vehicles driven or parked on public roads. The cost depends on factors like CO₂ emissions, registration date, fuel type, and vehicle list price.
Purpl Tip: Use the a car tax calculator before applying. That way, you’ll know exactly what you should be paying and can spot errors straight away.
What Are Car Tax Discounts and Relief Options?
When you live with mobility disabilities you often have no choice but to drive to places, like me, I am sure many of us would swap our disability to not get these benefits and be able to walk in a heartbeat. However, the reality is that we do have these challenges and the government put schemes like this in place to help make life a little easier for us. For disabled people, the cost of Vehicle Excise Duty (VED) or Car Tax can be reduced or completely waived if certain conditions are met.
For disabled people, road tax relief comes in two main forms:
- Full road tax exemption: You pay no car tax at all.
- 50% car tax reduction: You pay half of the normal amount.
Purpl Tip: Keep in mind that the exemption or reduction applies to one vehicle only. Choose the car you use most often for essential travel to maximise your savings.
Who Qualifies for a Road Tax Exemption or Reduction?
To be eligible for a road tax exemption, the vehicle must be registered in the name of the disabled person or someone using it for their benefit.
Full Exemption: You may qualify for free car tax if you receive:
- Disability Living Allowance (DLA): you must receive the higher rate mobility component
- Personal Independence Payment (PIP): you must receive the enhanced mobility component
- Armed Forces Independence Payment (AFIP)
- War Pensioners’ Mobility Supplement
50% Discount: You can get a 50% discount on your car tax if you receive the standard rate mobility component of Personal Independence Payment (PIP).
Purpl Tip: If your mobility benefits change (for example, moving from DLA to PIP), re-check your eligibility immediately. Many people miss out on savings because they don’t update DVLA when their award changes.
Which Vehicles Qualify?
Not every car is eligible for a discount or exemption. To qualify, the vehicle must:
- Be used only for the disabled person’s benefit, such as traveling to work, medical appointments, or social activities.
- Be adapted for the disabled driver or passenger if necessary.
- Not be used for non-eligible purposes, such as being lent to a friend or family member for unrelated tasks.
You can only apply for one car at a time under the scheme, so if you have multiple vehicles, choose the one you use most frequently.
Purpl Tip: If you’re buying a new car, mention your eligibility for road tax exemption at the dealership. Many dealers will help complete the DVLA paperwork so you drive away fully registered.
How to Apply for PIP Car Tax Exemption?
First-Time Application
You cannot apply for the first time online. Instead, you must apply at a Post Office that deals with vehicle tax. Follow these steps:
You must include the following with your application:
- a letter or statement from the Department for Work and Pensions that shows your PIP rate and the dates you’re getting it – if you’re getting PIP.
- an ADP decision letter from Social Security Scotland that shows your mobility component rate and the dates you’re getting it – if you’re getting ADP.
- the vehicle log book (V5C).
- a V10 form.
- evidence of a current MOT, if you need one – for example, a copy of your vehicle’s MOT history or your MOT certificate, if you have one.
- an original goods vehicle testing (GVT) certificate, if you need one.
- a cheque or payable order (made out to ‘DVLA, Swansea’) for 50% of the full rate of car tax for the vehicle.
- an insurance certificate or cover note (if you live in Northern Ireland).
Visit the Post Office:
Take the documents to a Post Office that handles car tax. To find a Post Office branch, you can either:
- use the Post Office branch finder – choose ‘Vehicle tax’ from the menu.
- call the Post Office – ask for your nearest branch that deals with vehicle tax.
Inform them you’re applying for car tax exemption or discount due to disability.
Renewals
Once your exemption or discount has been processed for the first time, you can renew your vehicle tax exemption online or by phone.
- Post: If you receive a tax reminder (V11), return the form with your updated documents
- Online: Use the GOV.UK Vehicle Tax Service
- Phone: Call DVLA at 0300 123 4321
Purpl Tip: Not all Post Offices process road tax. Use the branch finder before you set off so you don’t waste time or travel unnecessarily.
What Happens If You Buy a New Car?
If you’re purchasing a new vehicle, let the dealer know you’re eligible for a car tax exemption or discount. They can often help with the paperwork to register the car correctly.
If you’re buying a used car, make sure to update the V5C logbook and inform the DVLA about your eligibility.
Purpl Tip: Always keep copies of your PIP or ADP award letters. Having a folder with your latest documents makes renewals or changes much easier.
Additional Things You Should Know
- Having a Blue Badge does not automatically qualify you for a road tax exemption.
- You must still “tax” your vehicle even if it’s free.
- Refunds are possible if you become eligible partway through the year.
Purpl Tip: If you become eligible mid-year, apply as soon as possible. DVLA will refund you for any full months left on your old tax. The sooner you apply, the more you’ll save.
Check Which Vehicles are Exempt from Car Tax
You do not have to pay tax on some types of vehicle, for example:
- disabled passenger vehicles.
- mobility vehicles and powered wheelchairs.
Check which types of vehicles are exempt from vehicle tax.
Final Thoughts
Accessing a PIP car tax reduction or road tax exemption can save disabled people and their families hundreds of pounds each year. The process is straightforward once you know the steps — and it’s absolutely worth claiming.
Frequently Asked Questions
I went to the Post Office and they didn’t know anything about it!
For first time applications, you need to go to the Post Office, but it needs to be one that deals with Car Tax. Use the Post Office branch finder – choose ‘Vehicle tax’ from the menu.
What do I need to send to the DVLA?
A letter or statement from the Department for Work and Pensions that shows your PIP rate and the dates you’re getting it – if you’re getting PIP.
An ADP decision letter from Social Security Scotland that shows your mobility component rate and the dates you’re getting it – if you’re getting ADP.
Your vehicle log book (V5C).
A completed V10 form.
Evidence of a current MOT, if you need one – for example, a copy of your vehicle’s MOT history or your MOT certificate, if you have one.
An original goods vehicle testing (GVT) certificate, if you need one.
A cheque or payable order (made out to ‘DVLA, Swansea’) for 50% of the full rate of car tax for the vehicle.
An insurance certificate or cover note (if you live in Northern Ireland).
Can I get this with lower or middle rate DLA?
No, you need to be on the Higher Rate.
Where do I apply online?
Use the GOV.UK Vehicle Tax Service website.
Do I still need to go through taxing my vehicle even if I know I am exempt?
You must tax your vehicle even if you do not have to pay anything, for example if you’re exempt because you’re disabled.
What if I don’t drive? My partner drives me everywhere!
To be eligible, the vehicle must be registered in the name of the disabled person or someone who uses it for their benefit (such as a carer).
Can I transfer my disabled car tax?
No, you are unable to transfer disabled car tax status from one vehicle to another. When you get a new vehicle, or if the registered keeper changes, you’ll need to apply for free tax at a participating Post Office.
How do I get a refund if I’ve only just realised I am exempt from 50%?
If you are eligible for a refund on your car tax you will need to apply first via the V10 form. Once that has been approved you can request a refund for any overpaid car tax by sending a letter to the DVLA, Swansea, SA99 1DZ, with your details and car registration number, your PIP award letter and evidence of the date you became eligible for exemption. If you need help please call the DVLA on 0300 790 6802.
It is worth noting that refunds are only issued for whole months of unused tax, so you won’t get a refund for part of a month.
How do I get a refund if I’ve only just realised I am exempt from 50%?
If you are eligible for a refund on your car tax you will need to apply first via the V10 form. Once that has been approved you can request a refund for any overpaid car tax by sending a letter to the DVLA, Swansea, SA99 1DZ, with your details and car registration number, your PIP award letter and evidence of the date you became eligible for exemption. If you need help please call the DVLA on 0300 790 6802.
It is worth noting that refunds are only issued for whole months of unused tax, so you won’t get a refund for part of a month.
About the Author
Georgina is the founder of Purpl, a platform dedicated to helping disabled people save money through exclusive discounts. Living with Multiple Sclerosis (MS) and ADHD, she understands firsthand the financial challenges of living with a disability. Her mission is to work with brands to secure discounts that ease the cost of essential products, services, and everyday expenses for the disabled community.
As an ambulatory wheelchair user, Georgina knows how it feels to lose independence due to a disability. She is passionate about holistic therapies and diet to manage inflammation and stay as healthy as possible. Her goal is to make Purpl an essential resource for disabled people, offering practical support, advice, and financial relief.
Beyond Purpl, Georgina has a long-term vision to launch a foundation providing grants for disabled people who need extra financial support.
Follow @Purpldiscounts on social media for the latest disability discounts, financial advice, and accessibility resources.
Other articles, or links, you might find useful:
Blue Badge Holders: Act Now to Avoid Paying £195 in Road Tax
PIP Discounts and Freebies 2025: Maximise Savings with your PIP Benefits
Understanding Car Tax Discounts for Disabled People in the UK
Disabled Car Services Near You: What’s Available and How to Find the Best Options
Motability in the UK: A Comprehensive Guide
