From the 1st October 2014 the DVLA will replace the traditional tax disc with an all-new electronic system. As a result, car and van owners will no longer
be required to display a paper tax disc in their windscreen and will instead tax their vehicle online, with a car’s status as taxed, untaxed or SORN
recorded on a database linked to the registration of the vehicle.
The DVLA claim that they will save more than £10million a year and making it easier for car and van owners to tax or SORN their vehicles. The road tax
bands will not change and you will still be able to choose either 6 or 12 months tax. Please take a moment to read our blog so you know what to do
with regards to taxing your vehicle under the new rules. Happy Motoring from all at ACC UK Ltd, Independent Volvo & Toyota Servicing, Repair &
MOT Specialists of Farnborough serving Hampshire, Berkshire and Surrey!
So, what does this mean for me?
You will no longer need to display a tax disc on your windscreen. Under the new rules, motorists will need to register their cars online to pay for road
tax – or VED to use its official title – and this can only be done via the DVLA website, Post Office or Direct Debit. You will still get your renewal
notice through the post though.
Can i pay for road tax via Direct Debit?
Yes, the DVLA say this will make it easier for millions of motorists to tax their vehicle. From 1 November 2014, owners will be able to pay monthly on
a 12 month basis. However, new car buyers will not be able to use Direct Debit. Instead, they will have to get six or 12 months and then set up the
Direct Debit when this ends.
Will I get charged for paying monthly?
Yes, owners paying monthly will be subject to a 5% surcharge, however this is less than the 10% surcharge that's currently applied when you take out six
months road tax.
Is there a time limit to paying via Direct Debit?
Provided your MOT remains valid, the payments will continue automatically until you tell DVLA to stop taking the money or you cancel the Direct Debit with
your bank. Valid insurance should also be in place for vehicles registered in Northern Ireland.
What should I do with my tax disc?
Should you have a tax disc with any months left to run after the 1 October, it can be removed from the vehicle windscreen and destroyed, although motorists
with a Northern Ireland address will still need to display their MOT disc.
How will the authorities know if I pay or not?
The DVLA will carry out automatic checks via its electronic database. If you have not made SORN or taxed your car, an automatic penalty of £80 will apply.
The Police will also check via number plate recognition cameras and you could face a £1000 fine if you are caught on the road without tax.
What happens when I buy a car?
The vehicle tax will no longer be transferred when you buy a vehicle. Instead you will need to get new tax before you can use the vehicle on the public
road. You can do this by using the New Keeper Supplement (V5C/2) part of the vehicle registration certificate (V5C) online or by using the DVLA’s automated
phone service, which is open 24 hours a day. Alternatively, you can visit your local Post Office.
What about when I come to selling or declaring SORN?
Simply notify the DVLA and you will get a refund for any full calendar months left on the vehicle tax. The same applies to vehicles that are scrapped or
exported. Direct Debit payments will automatically be stopped when you tell the DVLA that you no longer have the vehicle or it has been taken off the
road.
How can I check a vehicle's tax status?
You can check the tax status of any vehicle by visiting the DVLA website. This can also be used to check rental vehicles too.
