Motorists face £1000 fine over tax disc changes

Just over a week ago the DVLA stopped issuing paper tax discs. In the build up to the transition there were worrying indications that more than 50% of drivers were unaware of the changes and how they might be affected.

Published: 16th September 2014

At the beginning of October the DVLA stopped issuing paper tax discs. In the build up to the transition there were worrying indications that more than 50% of drivers were unaware of the changes and how they might be affected.

It has also been made apparent that a majority of motor dealers are confused about the changes, leaving both themselves and their customers open to fines of up to £1000.

The government has been criticised for not making it clear when the changes take place and how that will affect motorists. This has been reflected by the findings of a money.co.uk survey, which showed over 50% of respondents were unaware of when the changes were to take place.

So how do these changes affect you? How do you make sure you avoid a huge fine? Take a look at our handy guide below  for all you need to know about the demise of the tax disc:

What is happening and when?

From 1st October 2014 paper tax discs will no longer be issued.

Will I still need to buy tax?

Yes, it just means that everything will be done online as technology advances and services are streamlined.

Why is the system changing?

The move is anticipated to save taxpayers £10 million in the search for motorists trying to dodge the system. It will also streamline the service and reduce administrative costs.

How will anyone know if I haven’t bought tax for my vehicle?

The paper system is being replaced by a computerised system and vehicle number plate recognition – which means that it will be very easy to find out if anyone has avoided paying vehicle tax.

What do I have to do?

You don’t need to do anything just yet, until your tax disc is due for renewal. You’ll then receive your renewal notice in the post as normal from the DVLA which you can use to renew online, over the phone or at a Post Office branch.

A new Direct Debit payment option is being introduced to make buying your car tax easier and more affordable. This will be available for customers who need to tax their vehicle from 1 November 2014.

Can I sell the tax disc with my car?

No, the tax will no longer be transferred with the car. If you buy or sell a used car the DVLA must be contacted and informed about the transfer of ownership. The new  owner must pay for new vehicle tax before driving away – or risk £1000 fine.

You can do this using the New Keeper Supplement (V5C/2) part of the vehicle registration certificate (V5C) online or by using the DVLA automated phone service – 24 hours a day, 7 days a week on 0300 123 4321.

Alternatively, you may wish to visit a Post Office® branch.

Can I get a refund on tax if I sell my car?

Yes, when the new owner notifies the DVLA the seller will automatically be sent a refund for the value of the full calendar months remaining.

Click here to read more: News ALA Connect.

 
Source: https://www.gov.uk/government/news/vehicle-tax-changes

Published: 16th September 2014
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