Tax disc changes: How to tax your car after October 1 2014

[dutchman]

Car tax discs are to be scrapped in six weeks time but half of all UK drivers are unaware of the changes coming into force.



The familiar paper circles which have been displayed on car windscreens since 1921 will vanish from October 1 as Vehicle Excise Duty is modernised following changes announced by the Government in 2013.

However, a survey by financial advice website money.co.uk claims 50% of drivers have no idea it's going to happen.

So here's a quick guide to everything motorists need to know to make sure they stay on the right side of the law.

When do the changes come into force?

From October 1, 2014, the paper tax disc will no longer need to be displayed on vehicle windscreens.

But I still need to tax my vehicle, yes?

Oh yes. Drivers still have to tax their vehicles - it's just the technology got cleverer. It's now all done online and via direct debit.
Will the authorities know if I don't pay my road tax?

Indeed. The police do fewer visual checks these days but regular checks to see if drivers have paid their road tax will be done electronically using databases. Remember, big brother is watching your number plate and drivers can face fines of up to £1,000 for failing to tax their vehicles.

How will it work?

To drive or keep a vehicle on the road you will still need to get vehicle tax and the DVLA will still send you a renewal reminder when your vehicle tax is due to expire, just like they currently do.

This applies to all types of vehicles including those that are exempt from payment of vehicle tax.

You can also apply online to tax or SORN your vehicle using your 16 digit reference number from your vehicle tax renewal reminder (V11) or 11 digit reference number from your log book (V5C).

How can I pay?

From 1 October 2014, 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 and will be available either annually, six-monthly or on a monthly basis.

A DVLA spokesman said: "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."

Are there any exceptions?

Yes, paying by direct debit will not be available to first registration vehicles, fleet schemes or HGVs.

How can I check the tax status of a vehicle?

You can check the tax status of any vehicle online by quoting the registration number and the make. This can also be used for rental vehicles.

What about when I buy a new car?

From 1 October, when you buy a vehicle, the vehicle tax will no longer be transferred with the vehicle. You will need to get new vehicle tax before you can use the vehicle.

You can tax the vehicle using the New Keeper Supplement (V5C/2) part of the vehicle registration certificate (V5C) online or by using our automated phone service - 24 hours a day, 7 days a week.

Alternatively, you may wish to visit a Post Office branch.

What about when I sell my car?

If you sell a vehicle after 1 October and you have notified DVLA, you will automatically get a refund for any full calendar months left on the vehicle tax.

[rebbonk]

Why not put a 'road tax' on fuel? Simpler and cheaper to apply, obviously bit too much for the morons we elect!

[dutchman]

I can think of a few reasons but chief among them is it would be electoral suicide to raise the tax on fuel immediately before a general election.

Either way I guarantee the new system will be far more costly and complex to administer than the old system was.

[rebbonk]

I don't know if it would be political suicide Dutchman.

Many support the idea as it stops those that don't pay it, and those that use the roads more pay more, which is fairer. If the amount charged was based on (say) 12,000 miles mileage (at say 30 mpg) and was no more expensive than the current disc it might actually be a vote winner?

I agree that it would be a brave politician to stick his head above the parapet, but...

[dutchman]

Scrapping car tax disc causes £200million fall in revenue

The scrapping of the paper tax disc has caused a £200million fall in tax takings in the first six months, new figures show.

An investigation using Freedom of Information (FOI) requests has revealed that the Driver and Vehicle Licensing Agency (DVLA) has seen a dramatic drop in revenue.

And the figures reveal the amount of vehicle excise duty collected from motorists fell sharply.

The change from a paper disc, first issued in 1921, to an online system in 2014, cost £1million.

The government financial watchdog claimed there would be no "material increase in lost revenue" - but official figures obtained by the Financial Times show a total of £2.7billion was collected between October 2014 and March 2015.

That is some £223million lower than the amount raised between October and March a year earlier.

Full figures for the year to March this year are expected to be published after the EU referendum on June 23.

The National Audit Office said the change-over "has likely contributed to an initial increase in reported levels of non-payment, which has led to additional compliance and enforcement activity."

[rebbonk]

Well, who'd have thunk it?