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The UK Government has announced tax changes that affect the Motability Scheme.
From Wednesday 1 July 2026, VAT and Insurance Premium Tax will apply to most new leases. This means it will cost more to deliver the Scheme.
We’re making careful changes to protect customers and keep the Scheme sustainable for the long term.
Last updated: 26 March 2026
These updates apply to new orders on or after Wednesday 1 July 2026.
If you get your allowance from Social Security Scotland, find out how these changes affect you.
Orders placed on or after 1 July 2026 will include:
If you already have a lease, nothing changes right now
Mileage is one of the biggest factors in the cost of running the Scheme.
When we know how many miles a vehicle will travel, we can plan costs more accurately.
Our aim is to:
If you need to drive more than the allowance, you can pay for extra mileage.
For orders placed on or after 1 July 2026, excess mileage will be charged at:
This cost covers the:
We understand that, in some circumstances, you may need to drive more than the mileage allowance included in your lease.
We will be introducing an exceptions process for very limited situations and will share an update before 1 July.
On average customers replace two or fewer tyres during a three-year lease.
We’ll refresh our fair usage policy based on how tyres are being used today.
On average, customers replace two tyres or fewer over a three-year lease. The new limits are designed to cover what most people need.
We’re also reducing the number of miles included in the lease. So it makes sense to update tyre replacement at the same time.
If you reach the limit, we’ll explain your options clearly. We’ll always focus on helping you stay mobile, and we’ll make sure you understand any costs before you decide.
Nothing is changing for you right now.
These updates only apply to new applications on or after 1 July 2026.
We’re working with the Scottish Government to understand how these changes might affect the Accessible Vehicle and Equipment Scheme (AVES).
You can still order as normal. We’ll contact you as soon as we have more information.
We’ll keep this page updated as soon as anything changes, so you always have the latest information.
Your lease will still include:
We stay committed to offering an all-inclusive package that gives you confidence and peace of mind.
If you’re unsure how these changes affect you, we’re here to help.
Whatever your question or feedback we are here to help. So please feel free to contact us.
Immerse yourself even deeper. Visit our social channels.
Johnsons Cars Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486) and which is permitted to advise on and arrange general insurance contracts as an intermediary.
Johnsons Cars Limited is authorised and regulated by the Financial Conduct Authority for consumer credit activity and our registration number is 688450. Permitted activities include acting as a credit broker not a lender. We can introduce you to a limited number of finance providers. We do not charge a fee for our Consumer Credit services. We do not act as a financial adviser, or fiduciary. We act in our own interest, whichever lender we introduce you to, we will typically receive commission from them based on either a fixed fee or a fixed percentage of the amount you borrow. Any and all commission amounts will be fully disclosed to you as part of your sales journey. You will be required to give your fully informed consent to our receipt of this commission. By doing this, you acknowledge that you understand our role as a credit broker, and that we will receive a financial incentive if you take out a loan from a lender that we introduce you to.
All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over, Guarantees may be required. View our full finance disclosure.