Buying Motorhome On Dla - Any Recent Experience

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Motorhome since 1997 Camping since 1990
I wonder if any members have had any recent experience of buying a new motor home VAT free if so could they answer a few questions:
  • What dealer did you use
  • What evidence did you need to supply
  • How easy was the process at the moment
  • What alterations did you have done to the MH
  • How long was the process
  • Did you find many dealers willing to offer this service if so who were they
Look forward to anyone providing some information

Colin
 
We don't have a Motorhome yet but our enquiries have revealed that the Motorhome has to be adapted ( wider doorway. Cassette lift for a wheelchair, wet room) for a disabled person to enable you to get the VAT off. However, just widening the doorway and putting in the cassette lift uses up any VAT reduction and further adaptations cost you. So, as usual, it's a no win situation, for us anyway.
 
Freeborn motor homes in Guildford and Southampton do vat free as I understand it u need a letter from your doctor saying u are in a wheel chair a copy of your DLA letter saying you get the higher rate and a photo copy of your disabled blue badge . I'm think you only need to add a ramp to qualify for them
 
See bottom of page one of this document:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/389229/vat1615.pdf
There's also a helpline number on the last page.

I believe that you can get ANY product required to assist with disabilities from ANY retailer VAT-free - you simply have to declare the disability. I can't remember the exact details, but last year I bought a number of things for my father from companies that weren't specifically providers of disability equipment, just had to provide a statement (one of the larger companies took a while as they had to get their legal team to draw up a pro-forma).
https://www.gov.uk/financial-help-disabled/vat-relief

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From the 1.4.16 the govt intends to tighten up rules on the the zero vat vehicle purchase for disabled people and has been consulting on the matter.

One of the welcome reforms will be a linking of national insurance number to vat free purchase. To ensure some of the serial abuse from both purchasers and sellers currently being undertaken of the system is stopped. It is also quite likely the vat free option will only be available on one vehicle every 3 years.

So genuinely disabled people can thank the non disabled pee takers for the loss of that help.
 
I wonder if any members have had any recent experience of buying a new motor home VAT free if so could they answer a few questions:
  • What dealer did you use
Premium Motorhomes
  • What evidence did you need to supply
The declaration form downloadable from the HMRC website. From memory (it was two years ago), we backed it up with evidence of DLA Higher Rate Mobility Allowance award.
  • How easy was the process at the moment
Straightforward when we did it.
  • What alterations did you have done to the MH
An Autochair Olympian wheelchair hoist. Grab rails above the bed. Additional grab rails by the sliding door.
  • How long was the process
Plenty of time to fit it into the delivery time of a new motorhome. If buying ex-stock, allow a couple of weeks to get the installation done.
  • Did you find many dealers willing to offer this service if so who were they
I would be surprised if any reputable dealer refused to do this for a clearly genuine claimant having proper adaptations done. SMC in Newark would also have been willing to do this when we enquired.

Note the requirement for 'permanent & substantial' alteration. A folding ramp that isn't attached to the vehicle isn't likely to qualify. A fitted hoist is, especially if coupled with other aids. The idea isn't to provide a cheap vehicle - it's to compensate for the additional costs incurred to make it usable by a disabled person. Having said that, our modifications were less than the Vat, but we could & would have started with a cheaper motorhome in the first place if our choice hadn't been constrained by having to cater for disability.
 
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Brownhills refused point blank when I rang them last as did several of the larger dealerships. too much hassle for them to be bothered
 
We don't have a Motorhome yet but our enquiries have revealed that the Motorhome has to be adapted ( wider doorway. Cassette lift for a wheelchair, wet room) for a disabled person to enable you to get the VAT off. However, just widening the doorway and putting in the cassette lift uses up any VAT reduction and further adaptations cost you. So, as usual, it's a no win situation, for us anyway.

Surely the "win" is that you get a motorhome with adaptations enabling the disabled person to use it?

D.
 
Brownhills refused point blank when I rang them last as did several of the larger dealerships. too much hassle for them to be bothered
.... which may mean that a lot of other things that you might want from your dealer might be too much hassle for them too! (n)

Of course, if a dealer has a history of zero rating vehicles in somewhat dubious circumstances, I would expect them to get a lot of hassle from HMRC - who wouldn't be doing their job if they didn't. There appears little doubt that the scheme has been seriously exploited.

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From the 1.4.16 the govt intends to tighten up rules on the the zero vat vehicle purchase for disabled people and has been consulting on the matter.

One of the welcome reforms will be a linking of national insurance number to vat free purchase. To ensure some of the serial abuse from both purchasers and sellers currently being undertaken of the system is stopped. It is also quite likely the vat free option will only be available on one vehicle every 3 years.

So genuinely disabled people can thank the non disabled pee takers for the loss of that help.
I have checked through the minutes of the Disability Customers Consultation Group which HMRC are members of and find no mention of discussions or minutes relating to this issue. I am fairly sure that they would have been party to consultation if it had taken place. Interested to know the source of the information regarding the proposed changes in April next year that campacola refers to. Was it one of the chancellors wish list type statements that emerge in budget or question time answers?
 
I have checked through the minutes of the Disability Customers Consultation Group which HMRC are members of and find no mention of discussions or minutes relating to this issue. I am fairly sure that they would have been party to consultation if it had taken place. Interested to know the source of the information regarding the proposed changes in April next year that campacola refers to. Was it one of the chancellors wish list type statements that emerge in budget or question time answers?
Clearly somebody in that organisation needs to get their ass into gear.....pardon the pun :doh:
https://www.accountancylive.com/vat-relief-adapted-motor-vehicles-review
 
Subject to any one meeting the HMRC requirements, we are quite happy to suply VAT Free to qualifying customers, speak to Andy and ask him.

Peter
 
Still following this consultation and this summary of responses was added by AAT an accountancy organisation.
VAT relief on substantially and permanently adapted motor vehicles for disabled wheelchair users

BY AAT ⋅ 12 JANUARY 2015

HMRC published a consultation document “VAT relief on substantially and permanently adapted motor vehicles for disabled wheelchair users” published in June 2014 and a summary of responses to the consultation in December 2014. HMRC received 70 written responses from a range of interested parties, including disabled individuals, motor dealers, finance houses, representative bodies, charities, the AAT and other professional bodies.

Most vehicles are subject to the standard rate of VAT (currently 20%) but the zero rate of VAT applies to substantially and permanently adapted motor vehicles for disabled wheelchair users. HMRC indicated in the consultation that it had evidence from auditing suppliers that almost all of the zero-rated vehicles purchased privately are luxury cars and motorhomes and that many of them are sold with minor, low-cost and easily removable adaptations. HMRC stated that “The relief is being targeted and abused by individuals and organisations that purchase vehicles at the zero rate of VAT in order to sell them on for profit.”

Most respondents, including the AAT, agreed that:

  • Reform of the zero rate of VAT for adapted motor vehicles for disabled wheelchair users was needed.
  • Subject to provision for exceptional circumstances such as, for example, if a vehicle is stolen or written off, a general rule restricting the relief to the purchase of one vehicle in a three year period would be appropriate.
Most respondents, including the AAT, did not agree with the suggested minimum cost of adaption rule in order to determine if a vehicle had been substantially and permanently adapted.

The summary of responses document published by HMRC in December 2014 set out the following next steps:

  1. The Government will proceed with reform of the relief.
  2. Legislative changes will be made to limit VAT relief to one adapted motor vehicle, purchased for the personal use of a disabled wheelchair user, in any three year period. However, provision will also be made to allow more than one vehicle in exceptional circumstances.
  3. The Government will define ‘substantially’ and ‘permanently’ in the legislation but there will be no minimum cost of adaptation rule.
  4. Motor vehicle suppliers will be required to submit details of zero-rated sales to HMRC. HMRC will work with the sector to establish the easiest method for suppliers to provide this information.
  5. Use of eligibility declarations will be mandatory and penalties will be introduced for the provision of false declarations.
  6. References to ‘stretcher users’ will remain in the legislation.
  7. Further informal discussions will be held to work through some of the details of the changes.
  8. Issues regarding boats will be explored with the sector to see if the same legislative concepts that apply to both motor vehicles and boats can be aligned without detriment to disabled people and boat suppliers.
  9. Legislative changes will be taken forward in Finance Bill 2016.
  10. New guidance and procedures will be introduced alongside the legislation. The guidance will clarify that users of lower limb prosthetics are entitled to relief, explain the new procedures and provide further information about what constitutes a ‘substantially and permanently’ adapted motor vehicle
 

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