End of the Tax Disc – What you need to know

TODAY marks the end of the paper Tax Disc after being in existence for 93 years. This has left many people confused as to what they should do when selling/taxing their cars. With many members contacting the Club for guidance we have compiled a list of the ten most popular questions/answers to assist you in understanding how the system will work. 

 

1. If I buy a second hand car after the October 1 2014, how am I meant to drive this away, as the tax will cease at the point of sale?
You can tax the vehicle using the New Keeper Supplement (V5C/2) part of the Vehicle Registration Certificate (V5C) online or by using the DVLA automated phone service available 24 hours a day, 7 days a week. Alternatively, you may wish to visit a Post Office® branch that deals with vehicle tax.

We are unable to check the vehicle road tax insurance details for new keepers in Northern Ireland (NI) online or by phone. So new keepers should tax at a Post Office® branch that deals with vehicle tax.

 

2. Will there be a grace period at the point of sale to allow me to drive to a Post Office to tax the car or to drive the vehicle home?
There will be no period of grace. In order to use a vehicle on the road, the buyer must always obtain new vehicle tax immediately upon the point of sale.

DVLA always advise that vehicles should not be purchased without sight of the Vehicle Registration Certificate (V5C). Any person buying a vehicle should insist on having the New Keeper Supplement (V5C/2) which allows the buyer to obtain a new vehicle tax immediately.

 

3. Why has the decision been made to not allow the transfer of remaining periods of car tax to be passed to new owners?
This is a customer protection measure. As there is no paper tax disc to check, the vehicle tax will end immediately when a vehicle is sold. This will remove any doubt for the person buying the vehicle, as it will mean that buyers (customers) will always be certain that they need to obtain new vehicle tax.

 

4. Why should motorists miss out on saving hundreds of pounds on remaining ‘road tax’ which can range from £20-£490 a year depending on CO2 emissions?
As the tax is not transferable, when selling a vehicle on or after the October 1 2014, the person named on the DVLA register will get an automatic refund of any full calendar months’ tax remaining when a notification is received from them advising that the:

– vehicle has been sold or transferred
– vehicle has been scrapped at an Automated Treatment Facility
– vehicle has been exported
– vehicle has been removed from the road and the person on the vehicle register has made a Statutory Off Road Notification (SORN)
– vehicle has changed to a nil rate of duty tax class

(Sadly the net effect of these changes is the seller will not be reimbursed for the remaining road tax in the month of the sale and the buyer has to buy road tax for that month, so the DVLA is paid twice for the month of sale!)

 

5. If I drive a friend’s, relative’s or rental car, how can I check if it’s taxed?
You can check the licensing status of a vehicle by going to www.gov.uk/check-vehicle-tax

 

6. Will a motor trader still be able to tax the vehicle for me?
Yes. A motor trader will still be able to tax a vehicle on behalf of a customer using a V5C/2 before the customer drives it away. From October 1 2014, motor traders will be able to do this online or over the phone. Motor Traders in Northern Ireland (NI) will need to continue to tax at the Post Office, as we are unable to check the vehicle insurance details for new keepers in Northern Ireland (NI) online or by phone.

 

7. How does this work for vehicles that are exempt from payment of vehicle tax e.g. Historic Tax Class?
The requirement to apply for vehicle tax will not change for any individual including those in the Historic Tax Class. The only change will be that the paper tax disc will no longer be issued and required to be displayed on a vehicle windscreen.

 

8. Will motorists still get a reminder when the vehicle tax runs out?
Yes. There will be no change to the issue of the Renewal Reminder (V11s and V85/1s).

 

9. If I buy a car, I can see immediately how much the tax costs. How else can I find out straight away, if there is no disc on show?
The cost of vehicle tax can be found at website www.gov.uk/check-vehicle-tax

 

10. How can I check if a vehicle is exempt from tax such as disabled?
From October 1 2014, you will be able to check the vehicle tax class and status of any vehicle online at www.gov.uk/check-vehicle-tax. You just need to provide the vehicle number plate and the make of the vehicle. If the customer is in attendance, request sight of either the Vehicle Registration Certificate (V5C) or the confirmation of eligibility issued by DWP.

 

With no doubt more questions arising as the new system is introduced, we will keep you updated in future issues of Safety Fast!.