25p per mile charges for drivers over 10,000 miles | Tech News

Thousands of drivers will face new charges from Wednesday, July 1 in the event that they drive more than 10,000 miles a 12 months.

From Wednesday, the Motability Scheme is being modified, with greater vehicle prices from new VAT and insurance coverage charges being put in place in addition to a lowered mileage allowance.

Under the newest modifications, new Motability Scheme Advance Payments will now embrace 20% VAT, whereas insurance coverage prices are additionally growing for some prospects. Wheelchair Accessible Vehicles (WAVs) stay exempt from the VAT change.

Leases will now have an average yearly mileage allowance of 10,000 miles per 12 months, and you’ll have to pay 25p per mile extra charges for any mileage over your annual restrict on the finish of your lease, Motability confirmed, with a whole allowance of 30,000 miles throughout a three-year lease, cut down from the earlier 50,000.

It says the mileage modifications are in response to the new tax prices imposed by the federal government.

Motability Scheme set out in a assertion: “From 1 July 2026, when you order a new vehicle on the Motability Scheme the standard mileage included will be reduced.

“We’re making this change as half of wider steps to handle rising prices, together with tax modifications from the UK Government.”

With millions of families preparing for summer holidays and school breaks, Majid Ismailzada, Director at GM Direct Hire, says it’s another reminder that many drivers are facing rising motoring costs before they’ve even filled up the tank.

Majid says: “July is already an costly month for many households as a result of of summer season journey, greater fuel spend and getting ready for household holidays. For disabled motorists who need to exchange or order a vehicle via the Motability Scheme, these modifications may add one other sudden value.

“Anyone affected should make sure they fully understand how the changes apply to their specific vehicle before ordering. Not every customer will see the same increase, and Wheelchair Accessible Vehicles remain exempt from the VAT changes.”

But Motability burdened that the modifications don’t but cowl these in Scotland.

It added: “Customers who get their allowance from Social Security Scotland will not be impacted by these changes from 1 July. We’ll be in touch when we’ve confirmed a date with the Scottish Government.”