Cabbie uncovers potential taxi vehicle tax flaw that could save each UK driver over £1,600
A taxi driver from Edinburgh has uncovered a potential taxi vehicle tax flaw that could save cabbies across the UK over £1,600.
The news comes as Greig Cockburn, a licensed taxi driver with Central Taxis in Edinburgh, successfully negotiated with the DVLA an adjustment to the list price of his Mercedes Vito taxi to take it below the ‘luxury car’ tax bracket.
The cabbie argued that because the vehicle was modified, with mobility features such as a wheelchair ramp, the taxi list price should reflect the pre-modified price.
Mr Cockburn purchased the 2018 Mercedes-Benz Vito taxi in 2019 for a price over the £40,000 ‘luxury car’ tax limit. However, when the frustrated cabbie pressured Mercedes-Benz and the DVLA to segregate the cost of mobility features, it pushed down the list price down by over £10,000 and below the ‘luxury car’ threshold.
The cabbie has now been refunded all excess payments and has been issued with a new V5C detailing the changes.
According to DVLA sources, the ‘list price’ is the published price of the vehicle, the day before it’s registered. This price includes the manufacturer’s retail price, any non-standard options, VAT, delivery charges and the battery for electric vehicles, if this is leased.
The driving authority confirmed that the vehicle’s list price may not always be what you actually pay for it, as it’s the published price before any discounts or incentives.
The DVLA also stated that modifications for disabled people should NOT be included in a vehicle list price provided to DVLA.
Mr Cockburn told TaxiPoint that another Edinburgh taxi driver has successfully adjusted their VED as a direct result of his complaint.
Vehicles with a list price of more than £40,000 have to pay an extra £325 a year in tax. Drivers of Zero-Emission Capable (ZEC) Vehicles are exempt from the charge, other drivers have to pay this rate for 5 years, from the second time the vehicle is taxed.
As a result, Mr Cockburn says that his findings will result in hundreds, if not thousands of taxi owners across the UK saving over £1,600 per owner, as vehicles are removed from the 'luxury car tax' bracket.
Mr Cockburn said: “This has been a lengthy 16-month battle between myself, the DVLA and Mercedes-Benz and a groundbreaking win for the trade. From the outset, I was told that I was wrong, misinformed and not entitled to the information that I craved regarding the costs of mobility modifications to my vehicle.
“I am thrilled that my sustained efforts have not just paid off for myself, but will put a large amount of cash back into taxi drivers pockets across the UK as a direct result. I deeply encourage anyone affected by the ‘luxury vehicle tax’ to query this status with the DVLA if your vehicle was fitted with mobility modifications prior to its first registration.”
