The UK car tax disc will disappear from our cars forever on October 1st 2014 and in its place comes a new system for paying your Vehicle Excise Duty.
The change in the process is aimed at making the purchase easier for the driver and a cheaper system for the government to run. It will also make things tougher for those vehicle owners who try to avoid paying the tax. Paper Tax discs are being ditched because the DVLA now has a digital record of payments. Rather than the visual check that the tax disc made possible, the authorities will now rely on numberplate recognition cameras to determine that a vehicle has been taxed.
Also from Wednesday 1 October the transfer of the tax from buyer to seller when you sell a vehicle is being scrapped. Instead anyone selling their vehicle will get a refund of any tax they’ve paid in advance, although only for full calendar months left outstanding. Even if a vehicle owner is not due a refund, you must tell the DVLA if you sell your car. Failure to do so means facing a fine of up to £1,000. You’ll also remain responsible for taxing the vehicle you no longer own and will have to pay any fines the buyer may clock up.
On the other hand anyone buying a car will need to tax their new vehicle before driving it home.
The way you pay for vehicle tax is also due to change from 1 November. At present you need to buy either six months’ or 12 months tax up-front, but under new laws car owners will be able to pay by monthly direct debit over 12 months.