DVLA news - abolition of the tax disc & paying vehicle tax by direct debit

See the March 2014 issue of DVLA newsletter with a quarterly update for stakeholders, commercial customers and suppliers. More

Comment: being able to pay the road tax by Direct Debit will be very useful for classic car owners because when they decide to SORN the car for a seasonal lay-up, the DD payments of monthly road tax will cease automatically. The constraint of a 6 months road tax disc and the complications with claiming a refund on a 12 month disc when a car is SORNd will end. Taken with the improvement of DVLA online services and the ending of the paper tax disc that will be a welcome improvement in convenience for classic car enthusiasts.

Posted: 140313

Abolition of the tax disc
On the 5th December 2013 it was announced that the Government will change the law in 2014 to reduce tax administration costs and burdens associated with vehicle tax. This is part of the Government's "Red Tape Challenge" policy of removing unnecessary administrative costs in the public sector. From 1s October 2014, the paper tax disc will no longer be issued and required to be displayed on a vehicle windscreen. Vehicle tax will still need to be paid - of course! A paper tax disc is no longer necessary as proof that vehicle tax is paid as DVLA has a digital record. If you have any remaining months left on your current paper tax disc from 1st October 2014, you can either remove the tax disc from your vehicle or display the disc until it expires - it's your choice.

Checking the tax status of a vehicle
You can check the tax status of any vehicle online. DVLA will still notify you when your vehicle tax is due for renewal. You will still need to renew your vehicle tax if your vehicle is road tax exempt - for example a vehicle in the historic tax class.
Online vehicle check
Buying or selling a vehicle
When buying a used vehicle you will be able to use the V5C/2
- new keeper supplement to pay vehicle tax at a Post Office branch, along with the MOT certificate (if applicable) and fee. From 1st October 2014 you will also be able to pay vehicle tax using the V5C/2 online or by phone. When selling a vehicle to a new vehicle keeper, the vehicle tax will no longer be transferable. Vehicle tax will end when a vehicle is sold and the new keeper will need to get the vehicle taxed immediately before the vehicle can be used. If you have been paying your tax annually or every 6 months, you will get a refund for any full calendar months left on the tax period when you tell DVLA you no longer require tax. More

Vehicle tax payable by Direct Debit
In December 2013 the Chancellor announced that DVLA will offer motorists the ability to spread their vehicle tax payments should they wish to do so. You’ll be able to set up a Direct Debit when paying online for vehicle tax. DVLA will forward your instructions to your bank and you’ll be given the option to pay: annually, 6 monthly or monthly. Whichever option you choose, the payments will continue automatically until you tell DVLA to stop taking them or you cancel the Direct Debit with your bank. If you’ve been paying your tax annually or every 6 months, you’ll get a refund for any full calendar months left on the tax period when you tell DVLA you no longer require tax. DVLA will automatically stop taking Direct Debit payments from your bank once you declare the vehicle off-road (SORN). DVLA is still working through the practical details and will provide a further update in the May edition of the DVLA newsletter.
V8 Register - MG Car Club - the leading group for MG V8 enthusiasts at www.v8register.net