Vehicle Tax Changes – How will the Changes Affect You?

It is thought that close to half of UK drivers are unaware of the upcoming changes to vehicle tax, are you one of these people?

The windscreens of our vehicles are set to change from 1^st October 2014 when the familiar British Tax Disc becomes obsolete.

However, the changes are greater than the abolition of the printed disc.  The Government are taking this opportunity to update the vehicle tax scheme, here is summary of the changes and importantly the new requirements when buying and selling a vehicle.

Displaying a Tax Disc

Tax discs will not need to be displayed in vehicles from 1^st October 2014. 

Does My Vehicle Still Require Taxing

If you want to drive or keep a vehicle on the road, you will still need to have tax on your vehicle. 

How Do You Know If a Vehicle is Taxed

Records of the tax status of any vehicle can be checked on the DVLA’s website by entering the registration and make.

How Will I Know When to Renew the Tax?

A reminder will be sent to the Registered Keeper advising that the tax will expire.

Paying for Vehicle Tax

From October an additional monthly payment option will be available.  Therefore, if your vehicle tax is due for renewal from November 2014 you can choose to pay for your tax either annually, 6 monthly or monthly by direct debit.

Monthly payments can be made provided you keep a valid MOT on the vehicle.  These payments will be taken until you inform the DVLA to stop taking the payments or you cancel the direct debit with your bank.

How Will Car Tax Evaders be Caught?

Cars will be tracked by automatic number plate recognition cameras, so motorists who are not up to date with their tax payments can be identified, and related fines will be issued.

Buying a Vehicle

After 1^st October 2014 the vehicle tax will no longer be transferred to the vehicle purchased.  Therefore, you will need to get new vehicle tax before you can use the vehicle.

Tax can be purchased online using the New Keeper Supplement of the Vehicle Registration Certificate or by phone using an automated service, or at a branch of the Post Office.

Selling a Vehicle

Vehicle tax refunds are available for anyone selling a car after 1^st October 2014.  If you inform the DVLA you will automatically get a refund for any full calendar months left on the vehicle tax.

Sellers should notify DVLA of any change to ownership straight away or face fines for the delay.

Vehicle Tax Refunds

Refunds will be automatic once the DVLA receive notification from the person named on the DVLA vehicle register that the vehicle has either been sold or transferred, scrapped at an Authorised Treatment Facility, exported, registered with a Statutory Off Road Notification (SORN) or if the registered keeper has changed the tax class on the vehicle to an exempt duty tax class.

Exclusions for the Direct Debit Scheme

The monthly Direct Debit scheme is not available for first registration vehicles, fleet schemes and HGV’s (paying the Road User Levy).