The Death Of The Tax Disc

Is everyone aware of the changes?

Posted on: 21/04/2015   By: Lee Rance

The tax disc, part of motoring for many years, no longer needs to be displayed on vehicles. This new rule came into force on the 1st October 2014, but vehicles still need to be taxed …

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The tax information is now held electronically by the DVLA and vehicles are checked by automatic number plate recognition cameras to ensure motorists have paid.

According to the RAC, 63% of motorists surveyed feared that scrapping the paper tax disc would result in a rise in the number of untaxed cars on the roads and a further 44% believed it would actually encourage people to break the law.

However, the Department for Transport estimates that Vehicle Excise Duty (VED) – ‘car tax’ – evasion affected only 0.6% of traffic on roads – 210,000 vehicles – in Great Britain in 2013, which equated to just £35m in lost revenue.

“VED is no longer transferable when a vehicle changes ownership!”

 

The tax is automatically cancelled, to which the DVLA will issue a refund and the new owners need to apply for tax before they can drive the vehicle. This rule is catching people out. Cars are being sold with tax discs, but the new owners are unaware that the tax disc is invalid once the vehicle changes hands.

The number of cars that have been clamped or seized has risen by 60 per cent since the new rules came into force, from about 5,000 a month before the changes to 8,630 after.

The DVLA writes to new vehicle owners to let them know that they must pay VED. If the tax is not paid, there is a chance the vehicle can be impounded. If that happens then the costs can really start escalating.

Getting the vehicle released within 24 hours:

  • Pay a £100 release fee.

  • Get vehicle tax. If vehicle tax hasn’t been purchased when the vehicle is collected then a ‘surety’ (deposit) needs to be paid. This is £160 for a car or motorcycle and up to £700 for other vehicles.

Getting the vehicle released after 24 hours:

  • Pay a £200 release fee.

  • Pay storage charges of £21 per day.

  • Get vehicle tax. If vehicle tax hasn’t been purchased when the vehicle is collected then a ‘surety’ (deposit) needs to be paid. This is £160 for a car or motorcycle and up to £700 for other vehicles.

Vehicles must be taxed within 14 days after this period or the surety fee is lost. If the car has been in the pound for seven days and the necessary release and storage fees are not paid, DVLA could dispose of the vehicle.

It is now a lot easier to purchase tax; either online, by phone (24hr, 7 days a week) or at the post office and the payments can now be spread over the year using Direct Debit.

“It certainly pays to go green!”

 

VED on cars registered after March 2001 is based on CO2 emissions with cars producing less than 100g/km being completely exempt from paying VED altogether.

Until next time …

Lee Rance