DVLA warns motorists to brush up on new rules or face £1,000 fines
The car tax disc was first issued in 1921, but from October 2014 it will disappear from car windscreens for ever thanks to a combination of technology and government claiming it will save motorists around £10 million a year. Even though you won’t physically have a tax disc anymore, the DVLA will still continue to send you a renewal reminder when your vehicle tax is due to expire. The reminders will still apply to all types of vehicles, including those that are exempt from payment of vehicle tax.
The biggest change from the 1st October 2014, is when you buy a second-hand vehicle because the vehicle tax will no longer be transferred with the vehicle. With 2.73 million used cars changing hands every year this will cause inconvenience for the new owner who technically cannot drive off in their new purchase until they have registered and paid for the vehicles road tax.
You can tax the vehicle using the New Keeper Supplement (V5C/2) part of the vehicle registration certificate (V5C) online or by phone – 24 hours a day, 7 days a week ensuring you can purchase a vehicle any time of the day or week.
Paul Watters, head of AA public affairs, said: ”Millions of motorists are familiar with the tax disc and having months to run it can sometimes be a deal maker or breaker for someone looking to buy or sell a car privately.
Shane Teskey, senior consumer services manager at hpicheck.com, said: ‘Sellers who fail to inform the DVLA, could be fined and they will still be liable for any speeding or parking fines and vehicle tax for a car they don’t even own any more.
Vehicle tax refunds
You will no longer need to make a separate application for a refund of vehicle tax. DVLA will automatically issue a refund when a notification is received from the person named on DVLA vehicle register that the:
- vehicle has been sold or transferred
- vehicle has been scrapped at an Automated Treatment Facility
- vehicle has been exported
- vehicle has been removed from the road and the person on the vehicle register has made a Statutory Off Road Notification (SORN)
- person on the vehicle register has changed the tax class on the vehicle to an exempt duty tax class
Paying vehicle tax by Direct Debit
From 1 October 2014 (5 October if setting up at a Post Office®), Direct Debit will be offered as an additional way to pay for vehicle tax. This will be available for customers who need to tax their vehicle from 1 November 2014:
- 6 monthly
- monthly (12 months tax paid for on a monthly basis)
Provided an MOT remains valid, the payments will continue automatically until you tell DVLA to stop taking them or you cancel the Direct Debit with your bank. Valid insurance should also be in place for vehicles registered in Northern Ireland.
The Direct Debit will be cancelled and payments automatically stopped when you tell DVLA that you no longer have the vehicle, or the vehicle has been taken off the road and a Statutory Off Road Notification (SORN) has been made.
When the Direct Debit scheme can’t be used
Paying by Direct Debit will not be available to:
- first registration vehicles
- fleet schemes
- HGVs (paying the Road User Levy)
An issue which should raise concerns is you will be liable if caught driving an untaxed vehicle you don’t own. Currently if you are driving a vehicle which does not belong to you at least have peace of mind the vehicle is taxed because the tax disc is on the windscreen.
These new changes will mean there is no tax disc, so how do you know if the vehicle is taxed? The DVLA has created an online checker ( https://www.vehicleenquiry.service.gov.uk/) which enables you within a few clicks to check the vehicle is taxed.