The demise of the tax disc

You might have heard that from 1st October 2014 the tax disc will no longer need to be displayed on a vehicle, but unfortunately that doesn’t mean we no longer need to pay the vehicle excise duty. Mostly, the whole process is now simplified – except for buyers of used vehicles, it seems.

* Note that this information could be subject to change.

Renewals
Reminders will still arrive and tax will still need to be renewed. However, you will not get a paper disc to display, all records will be held online only. You can already use the online services at www.gov.uk/browse/driving/car-tax-discs
There will be a new option to pay via direct debit – which will allow monthly payment – with a 5% premium for paying in installments for the year (a reduction from the current 10% for buying a six-monthly renewal).

Selling a car
You will no longer be able to sell a car with tax left on it – which is unfortunate when buyers are usually keen to have as much time left as possible. After October, you will automatically receive a refund of any complete months left when DVLA receive notification that a vehicle registered to you has been sold.

Buying a car
You will no longer be able to buy a car with tax left on it, you will have to arrange that immediately after purchase of any vehicle. You will be able to do so using the V5C/2 (new owner’s green slip) at the Post Office, by phone or online.

Check a vehicle’s tax status
So, how will you know if your hire car is taxed, or the one that appears to have been dumped at the end of your road, once they don’t have a tax disc to display? If you can get online, you can check it at www.gov.uk/check-vehicle-tax.

* This post uses information available to us at June 2014 and could be subject to change.