MoneyMagpie

Aug 20

Don’t pay a £1,000 fine. Check out the new car tax rules!

From 1 October 2014 the paper tax disc, first introduced in 1921, will be a thing of the past. Don’t get too excited though, you’ll still have to pay car tax (it’s not road tax, that was abolished in 1937!), only now it will all be done through an electronic system.

 

What’s happening with car tax discs?

Over 17 billion tax discs have been issued since 1921, enough to go around the world three times, but now automatic number plate recognition will be catching those who have not registered their car to pay Vehicle Excise Duty (car tax.)

You can tax your vehicle via Direct Debit on the DVLA website, ringing their automated phone service or visiting a Post Office Branch.

Automatic number plate recognition will catch out any drivers without tax. The police will immediately inform the DVLA and they will send an enforcement notice to the registered keeper of the car.

This is set to make it much harder for tax dodging motorists, putting an end to ‘my tax disc is in the post’ excuses and saving the taxpayer an estimated £10 million every year.

 

the moneymagpie car insurance comparison tool

 

How do the new car tax rules affect buyers and sellers?

The biggest impact of the new changes will be on the buying and selling of used cars.

  • The vehicle tax is no longer transferred with the car, so used car buyers will lose out on the nice moneymagpie_roadlittle perk of getting the left over months on the car’s tax disk.
  • Instead you will need to get new car tax straight away, and you’ll be unable to use the vehicle until it is taxed.
  • Sellers are responsible for notifying the DVLA that there has been a change of ownership.
  • If they do not do so they risk a fine of up to £1,000.
  • Any full months left on the car tax will be refunded to the seller by the DVLA.

 

 

Make sure you’re prepared for the upcoming changes.

If you’re in any doubt about the tax status of your vehicle check it out using the DVLA’s Vehicle Enquiry System.

 

 

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