By now you would have heard that you don’t need to display a tax disc from October 2014. What does this actually mean and how does it affect how you need to do with regards to your vehicle?
What Happens When I Sell My Car?
There are no differences to what you need to do when selling your car with regards to tax as any remaining road tax you have paid for will automatically be refunded when the vehicle is sold. You will still need to send off the correct part of the V5C registration document to the DVLA to let them know that you have sold the car, or no longer own it, and this will let them know to initiate the refund rather than you having to fill out a refund form and send it off in the post. You will no longer be able to sell a car with road tax that transfers onto the new keeper.
What Happens When I Buy A Car?
When you a buy a used car it will never have remaining tax ever again. You will always have to tax it immediately before you can use it. The DVLA have made it easier to tax a vehicle using the new keepers supplement from the V5C document. You can tax your vehicle 24 hours a day, 7 days a week online or by phone on 0300 123 4321. Don’t worry though. You will still get a tax disc reminder sent through the post and you can still pay for your tax at the post office. If for some reason you don’t get a new keepers supplement, the post office can help you apply for a new V5C registration document.
Will I Have To Budget For Paying Road Tax On Top Of Buying A New Car?
In theory you will have to set aside an extra bit of cash to pay for additional road tax when you buy a car however, from the 1st November 2014 you will also be able to pay monthly via direct debit which has not been available before. This will help people who haven’t budgeted enough to pay road tax for a whole year or 6 months or people who just prefer to have their outgoings on a manageable monthly basis.
How Will I Know When My Tax Is Due?
As you will no longer be able to look at your tax disc on your windscreen to remind you how long would be left on your tax, you can check it online using the DVLA’s free vehicle enquiry service: https://www.gov.uk/check-vehicle-tax. Along with being able to pay monthly by direct debit, you will also be able to set up a direct debit for your annual or 6 monthly renewals. This means that you will never have to worry about forgetting to renew your tax. All direct debit payments will automatically stop as soon as you inform the DVLA that you no longer own the vehicle using the same methods that are currently used (sending off part of the V5C document to the DVLA).
How Will The Authorities Know If I Haven’t Paid?
All checks will now be done electronically. The ‘big brother’ of the roads will be scanning number plates as vehicles drive past and if you do not have tax you can be issued a fine of up to £1,000.