Changes in the Car Tax Rules

Changes in the Car Tax Rules

Many people have been left confused as to how the changes in the car tax rules affect them and what they have to do to ensure that they comply with the changes; we have decided to produce a guide to help with this.

The changes came into effect from the October 2014, in essence the change was to remove the need to display the tax disk in your car. First of all, if you have a paper disk with time left on it you can now remove it and destroy it, you are still taxed you just don’t need to display a disc.

As we know if your vehicle is not exempt you will need to pay a vehicle tax, the DVLA will still send you a renewal reminder; you will receive one of these even if your vehicle is exempt or nil rate.

But the confusion arises when you change your car, what should you do?

Buying a Vehicle

The new rules mean that the vehicle tax will no longer be transferred with the car, you will need to arrange for new tax before you can use the vehicle, you can do this in a number of ways, on-line via the government portal, via the automated phone system which is always open on 0300 123 4321, or the old fashioned way, at your post office, a word of warning that you must have motor insurance in place before taxing your new vehicle.

Selling a Vehicle

As mentioned the tax is non transferable so you will need to apply for a refund for the remaining time left on your vehicles tax, you need to notify the DVLA and they will automatically refund any full remaining months (not part months – a bit naughty in our view!), the refund will be sent to the keepers details on their records.

What is good here is that notifying the DVLA is your application for a refund, you do not need to do a separate application; they will also issue refunds automatically when your vehicle has been-

- Transferred
- Scrapped
- Exported
- Kept off the road- and registered as such
- Where the vehicle has become exempt

Other changes or points of interest

Driving in Europe- It’s the same as the UK you do not need to do anything different

You can now pay your Tax monthly in addition to the 12 or 6 months options, and all options can be paid via a direct debit for the first time, and as long as you hold valid insurance and a MOT your payment will be taken automatically upon renewal.
There are some situations where a direct debit cannot be used, but you will be advised if this is the case for you.
It’s the responsibility of a driver to ensure that a vehicle is road legal and if you want to check to see if a vehicle you are going to drive has tax you can do so on-line via the government check vehicle tax portal, but most enforcement action is, "against the registered keeper" to quote a DVLA source, but that's not to say that it is always this way.

Confusion can occur when driving a company vehicle so we recommend you do the checks.

This is designed to help the majority of drivers however there will be exceptions so if you have any concerns please contact the DVLA, different rules also apply for Northern Ireland.

Contact details for DVLA - 0300 790 6802

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