Six things you need to know about the new road tax changes.
When do the road tax (or Vehicle Excise Duty) changes take effect?
From the October 1st 2014 you will no longer need to display a tax disc in the windscreen of your vehicle, even if the disc is still valid. There are also changes to how road tax is purchased and its transfer when a car is sold.
- How will anyone know whether or not I have paid my tax?
The DVLA keeps a record of everybody who has paid their road tax. This database, combined with automatic number plate recognition, means that if you’re driving around without tax, the DVLA will find out and take action, with the possibility of fines up to £1,000 and vehicle confiscation.
- What happens if my road tax has not expired yet?
You do not have to do anything. Your existing road tax will remain valid until the expiry date, at which point it can be renewed using the new system.
- How will I know when it’s time to pay my tax?
The DVLA will send you a V11 renewal letter a few weeks before your renewal date is due.
- If I buy a second hand car, how will I know how much tax it still has left?
Selling a vehicle with tax included will no longer be possible. If there is road tax remaining on a vehicle, the DVLA will automatically refund the previous owner as soon as they have been informed of a change of ownership. This means that the seller of the vehicle will no longer have to make a separate application for the refund of road tax. The new owner will have to buy their own road tax before they can use the vehicle. Note that the DVLA will only calculate rebates based on complete months of "unused" road tax rather than on partial months.
How do I pay for my tax?
You can tax your vehicle using the New Keeper Supplement (V5C/2) part of the vehicle registration certificate (V5C) or the 16 digit reference number from your vehicle tax renewal reminder (V11) online. You can also use the DVLA’s automated phone service or you can still use the Post Office to buy road tax over-the-counter.
Furthermore, from November 1st you will have the option of setting up a direct debit mandate. You will be able to set this up annually, 6 monthly or monthly. It’s worth noting however, that if you choose the monthly or 6 monthly option you will be subject to a 5% or 10% surcharge on top of the road tax itself and there will be additional charges for using a credit card.