Can I Cancel and Reclaim Tax?

Depending on the condition of your vehicle, it’s likely you’ll be able to sell your car for scrap, meaning it’s out of your hands, plus you’ll have some extra money in your wallet – it’s a win-win. We’ve even developed a Scrap Car Value Calculator so you can see a range of quotes from our network of over 100 scrap dealers nationwide in moments.   

But this isn’t the only extra money you could be due after scrapping your vehicle – you could also be eligible to reclaim money on your unused car tax. 

Read on to find out more. 

Cars stacked in a scrap yard. Blue sky with clouds in the background

What reasons can I have for cancelling car tax?

If you no longer have your car, then you’re not going to need to keep taxing it – in fact in doing so you’re just giving money away for no reason. There are a number of reasons that could result in you no longer needing to have your car taxed, and therefore being cancelled, which we have listed below. It is also worth remembering that you must tell the DVLA if any of the following has occurred:

  • Car has been sold or transferred to someone else
  • Car has been taken off the road through a Statutory Off Road Notification (SORN) – such as being kept in a garage and not driven
  • Car has been written off by your insurers
  • Car has been scrapped
  • Car has been stolen
  • Car has been exported
  • Car is registered as tax exempt

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Can I Claim Tax Back If I Scrap My Car?

Yes, you can also claim tax back on your scrapped vehicle, as long as there are one or more full months of paid tax left on your account to claim back. While there’s no calculator to find out exactly how much you can expect, if you know when your tax is due, you should be able to work out how much you’ll get back. For example, if it’s halfway through January and your tax is paid until the end of March, you’ll be due a reimbursement for the whole months of February and March, but not for the half month left in January. 

If you need to check if your car has been scrapped before trying to claim back any tax, we’ve put together this guide showing you how.

How to claim your tax back when you scrap a car  

It’s important to let the DVLA know when you’ve sold your car to the scrap dealer, as otherwise they’ll still assume you’re the owner.

It’s equally important because it’s the same process to automatically have you tax refunded! When you let the DVLA know you have scrapped your car the refund will be calculated and you should receive it within approximately six weeks. For more info read our full guide on notifying the DVLA here.

How to notify the DVLA

  • Online – Alternatively, you can also inform the DVLA that you’ve sold your vehicle through their online portal – just follow the steps on the vehicle tax refund page and they will be alerted to refund any relevant tax payments.  
  • Post – You can post your yellow V5C slip to the DVLA, which will automatically inform them that you’re no longer responsible for the car, resulting in a tax refund being issued.  
A vehicle tax reminder document of a desk with car keys and money.

Can I claim for a tax refund if my car is written off?

If you’ve been involved in an accident and have had your car written off, then you’ll need to make sure you inform the DVLA of the fact – failure to do so could result in a fine of £1,000 heading your way. When telling the DVLA, you’ll need to provide your insurance company’s name and postcode, your car’s registration number and the 11 digit reference number from the yellow section of the log book. Once this has been completed, you’ll be sent both an email and a letter confirming you are no longer the keeper of the vehicle and a tax refund for any full months left when the DVLA receives the information, so it’s important to ensure you do this as soon as possible.

How do I cancel my car tax?

If you meet any of the criteria mentioned earlier in this article about no longer having your car, then you’ll need to tell the DVLA of the fact. Doing this can be done by post or online. Once the DVLA has received all of your information, your vehicle tax will be cancelled and if you pay by Direct Debit, your Direct Debit will automatically be cancelled. Any full months remaining on your tax will then be refunded back to you via cheque to the same address on the vehicle log book.

Time remaining on your tax is calculated from the time your details arrive at the DVLA, not when the vehicle was written off or sold, so it’s important to ensure you send the details as soon as possible. For example, if your tax was to run out on the 1st December and the information arrived at the DVLA on the 4th September, you would receive a refund for both October and November.

You will not be refunded for any credit card fees, the 5% surcharge on some debit card fees and the 10% surcharge on a single six-month payment.

What documents do I need to cancel my car tax?

The only documents you’ll need to cancel your car tax is your car’s V5C, otherwise known as the logbook, and a completed V11 form. The V11 can be found online or at a Post Office, and once it has been completed send it, with your car’s logbook, to the DVLA to process.

Check out our Scrap Car Collection FAQs for more information about requirements for scrapping your vehicle. Then, why not get started on scrapping your car today? We’ll help you to secure a quote and discover how much your scrap car may be worth.

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