PIP delays and Vehicle Duty Exemption

Following an MR, client has been awarded SR Mobility of PIP and therefore wants to apply for 50% reduction in her road tax. She applied for PIP in November 2013 and the award has been backdated to then.

I rang DVLA today and was told that she can only get the car tax reduction from when she applies for it, i.e. it can’t be backdated earlier than January 2015. This means that because of the length of time it has taken to decide her claim she has missed out on about 14 months of car tax reduction, around £210.

Does anyone know:

1) What regs give the 50% exemption?
2) Whether what DVLA is saying is challengeable?
3) If not, is it worth making a complaint to DWP for the length of time it has taken to arrive at a decision and try to recover the lost £210 from DWP as compensation?

Any thoughts appreciated.

I don’t know the answer but I’ve been pondering on exactly the same issues so will follow this thread with interest. It does seem most unfair doesn’t it, and logic (!) tells me that there should be some form of redress/compensation for clients in this position.

The legislation that gives the exemption is Schedule 2, para 19 of the Vehicle Excise and Registration Act here -

http://www.legislation.gov.uk/ukpga/1994/22/schedule/2

and this seems to be amended to include PIP by schedule 37 section 6 of the Finance Act 2013 here -

http://www.legislation.gov.uk/ukpga/2013/29/schedule/37/paragraph/6#schedule-37-paragraph-6-4

but I can only spot reference to the full exemption for enhanced mobility at the moment and not to the 50% exemption for standard rate though I guess it must be there somewhere.

The words used are ‘in receipt of’ so i guess you’d have to argue that they were technically ‘in receipt’ since the date of claim - just that it was paid late?

If you can’t get anywhere then definitely push for compensation.

If anyone can find the 50% exemption that I can’t find please say!

£210 was 50% of her car tax? That seems rather steep - it would make her full car tax for the 14 months £420 or £360 for the year.

Either way, good point. The law is the Vehicle Excise and Registration Act 1994, Sch 2, p.19.

I would be inclined to have a trawl for when exemption takes effect and whether there are rules on backdating. At first glance, the legislation doesn’t say either way.

Was car tax exemption ever backdated under the DLA rules? I don’t think I came across a case where it happened. It wasn’t so relevant when claims were decided in a month or two. Now they take a year, it matters much more.

EDIT: beaten to the punch by Daphne!

My memory is that you did get a refund if you’d paid tax for a period when you were covered but of course it wasn’t such long periods in the halcyon days of DLA…

You get a ‘certificate of entitlement’ for exemption which should set out the period you’re exempt for so it would be worth checking that to see what it says - whether it goes from the start of award or the date the certificate is sent out? Do you know what it says Billy?

I have a similar case, client wants his payment back having won a DLA mob tribunal. I’ve written three times to DVLA since July - client had one letter back refusing to help, referring him back to DLA as his benefit was delayed by an ‘administrative error’.

I’ve made the argument that winning an appeal re-sets entitlement from the date of the decision and so client is ‘in receipt of’ the relevant DLA from that date, hence the provisions of the Vehicle Excise etc etc Regulations should be satisfied.

I have asked if there is anything in the legislation to stop a backdate.No reply.

Maybe it’s MP time.

Daphne - 09 January 2015 10:32 AM

My memory is that you did get a refund if you’d paid tax for a period when you were covered but of course it wasn’t such long periods in the halcyon days of DLA…

Yes, she was previously in receipt of DLA HRM and says that she was given backdated exemption when awarded this (it took some time as DLA only awarded after appeal)

Daphne - 09 January 2015 10:32 AM

You get a ‘certificate of entitlement’ for exemption which should set out the period you’re exempt for so it would be worth checking that to see what it says - whether it goes from the start of award or the date the certificate is sent out? Do you know what it says Billy?

There’s just the “Your PIP Payment Decision” letter (which, incidentally, states that you can get free road tax if you get ERM but does not mention the 50% reduction for SRM at all.

The 50% reduction regs are in Schedule 37 of the Finance Act 2013 para 5 amending VERA 1994:

“In Schedule 1 (annual rates of duty), in Part 1 after paragraph 1 insert— “1ZA(1)The annual rate of vehicle excise duty applicable to a vehicle to which this paragraph applies is 50 per cent of the rate which (but for this paragraph) would be applicable. (2) This paragraph applies to a vehicle when it is being used, or kept for use, by or for the purposes of a disabled person who is in receipt of personal independence payment by virtue of entitlement to the mobility component at the standard rate if…”

I’ve spoken to the PIP helpline who say that it can’t be backdated but as usual they have no idea why (it’s just what we’re told).

I think, however, that the answer is going to be negative to backdates. I suspect that it is like when you sell a car with half a tax disc on, you get the refund for any full months remaining, or in this case half a refund. DVLA are saying that she has to buy a new 6 or 12 months tax disc at the 50% rate and then several weeks later will get refunded for the months outstanding on her previous, full price tax disc (before long referring to tax discs will be just another way of showing my age…) Will work it out properly when it’s not 6.30 on a Friday night with a curry and a pint calling.

Thanks for the help all.

Thanks for pointing out the legislation Billy - hope you had a good curry and pint (or two…)

Billy Durrant - 09 January 2015 06:28 PM

I suspect that it is like when you sell a car with half a tax disc on, you get the refund for any full months remaining, or in this case half a refund.

 

not any more we don’t.

The DVLA changed the rules effective beginning of October, and you can no longer get a refund on any time remaining….

The seller can still get a refund but you can’t transfer the tax to the buyer when you sell the vehicle

Billy Durrant - 12 January 2015 10:22 AM

The seller can still get a refund but you can’t transfer the tax to the buyer when you sell the vehicle

oh right, I’d read it otherwise…..

Claire Hodgson - 12 January 2015 10:52 AM

Billy Durrant - 12 January 2015 10:22 AM

The seller can still get a refund but you can’t transfer the tax to the buyer when you sell the vehicle

oh right, I’d read it otherwise…..

You definitely can get a refund as i have done it - however you only get the refund on any whole months left - so if you sell a vehicle on the 15th forget the rest of that month.