Top 10: UK vehicle tax disc abolition facts
Paper vehicle tax discs were first introduced in the UK back in 1921. However, from the beginning of next month, there will no longer be a requirement to display one.
Apart from that being bad news for the disc-holder industry, it also means some new rules. So, ahead of the imminent changeover date, here are ten things to know about the revised system:
1. Vehicle excise duty isn’t being abolished
While the 1st of October 2014 sees the demise of the paper disc, owners will still have to pay vehicle tax.
2. Enforcement continues
Indeed, the DVLA should find the checking process much easier. Instead of relying on people peering at windscreens, it’s going to involve automatic number plate recognition cameras and a big database.
3. Drivers of untaxed vehicles will be fined
If the DVLA or police find an untaxed vehicle on the road, then the driver – not the owner – can expect to receive a non-endorsable fixed penalty.
4. Checking a vehicle’s taxation status is now much easier
Given the driver liability outlined above, it’s perhaps just as well that the DVLA has set up a free checking web site at https://www.gov.uk/check-vehicle-tax. Anybody borrowing or hiring a vehicle (or using one of their employer’s) may want to consider using it.
5. There’s no excuse not to renew
Some people might currently rely on the paper disc to tell them when their tax is about to expire. But they needn’t worry, as the DVLA has committed to continue posting out reminders. Payment can be made online, via phone or at a post office.
6. A direct debit option is being introduced
The launch in November 2014 of a direct debit scheme is set to make vehicle tax renewal extremely simple. Available on an annual, biannual or monthly basis, the last two options are going to attract a 5% surcharge. An important point to note is that if the vehicle’s MOT lapses, then the DVLA says it’ll stop collecting the direct debits. Therefore in that situation no MOT also equals no tax.
7. Vehicle sellers must notify the DVLA
At the moment, when a vehicle is sold any outstanding tax usually gets transferred with it. Not so under the amended regime, which demands that all sellers promptly inform the DVLA. That action effectively cancels the tax and failure to do so could incur a hefty fine of up to £1,000.
8. Refunds are going to be automatic
Once the DVLA is told that a vehicle has been sold, scrapped at an approved facility, exported, swapped to a tax-exempt class or SORN declared, then a refund will be made automatically based on any full months of unused tax already paid for. Those same notifications would end a direct debit arrangement too.
9. Used vehicle buyers must buy tax
Because tax won’t be transferring when ownership switches, buyers of used vehicles will have to immediately purchase it online, via phone or at a post office. This is probably the one innovation that’s likely to cause the most problems, but the DVLA isn’t allowing a grace period.
10. There are some special rules for Northern Ireland
To make matters even more complicated for those in Northern Ireland, they’ll only be able to tax their just-bought used vehicles at a post office. Furthermore, payments via direct debit are only going to be allowed if the vehicle has valid insurance as well as an MOT. Finally, on the subject of MOTs, the Northern Ireland MOT disc isn’t being done away with, therefore the obligation to have one remains.
Related post:
London Congestion Charge increasing
Apart from that being bad news for the disc-holder industry, it also means some new rules. So, ahead of the imminent changeover date, here are ten things to know about the revised system:
1. Vehicle excise duty isn’t being abolished
While the 1st of October 2014 sees the demise of the paper disc, owners will still have to pay vehicle tax.
2. Enforcement continues
Indeed, the DVLA should find the checking process much easier. Instead of relying on people peering at windscreens, it’s going to involve automatic number plate recognition cameras and a big database.
3. Drivers of untaxed vehicles will be fined
If the DVLA or police find an untaxed vehicle on the road, then the driver – not the owner – can expect to receive a non-endorsable fixed penalty.
4. Checking a vehicle’s taxation status is now much easier
Given the driver liability outlined above, it’s perhaps just as well that the DVLA has set up a free checking web site at https://www.gov.uk/check-vehicle-tax. Anybody borrowing or hiring a vehicle (or using one of their employer’s) may want to consider using it.
5. There’s no excuse not to renew
Some people might currently rely on the paper disc to tell them when their tax is about to expire. But they needn’t worry, as the DVLA has committed to continue posting out reminders. Payment can be made online, via phone or at a post office.
6. A direct debit option is being introduced
The launch in November 2014 of a direct debit scheme is set to make vehicle tax renewal extremely simple. Available on an annual, biannual or monthly basis, the last two options are going to attract a 5% surcharge. An important point to note is that if the vehicle’s MOT lapses, then the DVLA says it’ll stop collecting the direct debits. Therefore in that situation no MOT also equals no tax.
7. Vehicle sellers must notify the DVLA
At the moment, when a vehicle is sold any outstanding tax usually gets transferred with it. Not so under the amended regime, which demands that all sellers promptly inform the DVLA. That action effectively cancels the tax and failure to do so could incur a hefty fine of up to £1,000.
8. Refunds are going to be automatic
Once the DVLA is told that a vehicle has been sold, scrapped at an approved facility, exported, swapped to a tax-exempt class or SORN declared, then a refund will be made automatically based on any full months of unused tax already paid for. Those same notifications would end a direct debit arrangement too.
9. Used vehicle buyers must buy tax
Because tax won’t be transferring when ownership switches, buyers of used vehicles will have to immediately purchase it online, via phone or at a post office. This is probably the one innovation that’s likely to cause the most problems, but the DVLA isn’t allowing a grace period.
10. There are some special rules for Northern Ireland
To make matters even more complicated for those in Northern Ireland, they’ll only be able to tax their just-bought used vehicles at a post office. Furthermore, payments via direct debit are only going to be allowed if the vehicle has valid insurance as well as an MOT. Finally, on the subject of MOTs, the Northern Ireland MOT disc isn’t being done away with, therefore the obligation to have one remains.
Related post:
London Congestion Charge increasing
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