Changes to the Car Tax system
Since 1921 car tax discs have been issued to UK drivers in the millions. We have displayed the small round paper disc in our windscreen’s to show we’ve paid our car tax as requested to do so by law. However, as of the 1st of October last year there was a significant change to the car tax system. The paper disk is no longer needed to sit in open display of our vehicles as the DVLA now have a digital record of your car tax payment, putting a stop to the needless use of paper. Whilst this doesn’t mean that you no longer need to tax your car, it just means that you don’t need the prominent little sign anymore. You’ll be able to drive on the roads no problem at all, and will be able to use your vehicle so long as you actually paid the tax.
For most of us, we will not notice the difference straight away as you don’t need to do anything until your current tax disk expires. When it is time to renew, for those of you who renew online, you’ll go through the same process but this time you will not receive that little paper disc that so many of us automatically collect in the tax disc holder. Plus, there is also the option to pay monthly or by instalments via direct debit for a fee of 5% of the total amount to pay. Previously, the only option to spread the payment was by either paying for six or twelve month periods. Drivers who do not have access to the Internet can pay their car tax either by phone or a Post Office.
The new process brings a little negative to the table such as the fact that cars are no longer transferred with tax when they are sold – you need to buy tax from day one with your vehicle. Buyers of used cars will now need now to purchase car tax themselves as soon as they take ownership, rather than benefiting from tax already paid for by the seller. The seller of the car can now apply for a refund for any months that remain that have been paid for when they notify the DVLA of the ownership change.
It is the seller’s responsibility to inform the DVLA of the change of ownership, otherwise they could potentially face a £1,000 fine. The new owner of the vehicle can also be fined £80 for driving an untaxed vehicle plus any back tax. It is absolutely vital to have the car taxed so that you can drive it legally. Make sure that if you won’t be taxing the vehicle that you put through a Statutory Off-Road Notification (SORN), which means you no longer need to pay tax for the vehicle but it cannot be used either.
For further information visit www.gov.uk
