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Vehicle tax changes from 01 Oct 2014: new rules & fines

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The traditional paper car tax disc will be replaced by an electronic system in October, and drivers are being urged to understand the rules

The tax disc, which was first introduced in 1921, will cease to exist in paper form from October 1, with a new electronic system being put in its place.
Under new rules announced in the Autumn Statement last year, motorists will now have to register their car online to pay Vehicle Excise Duty, otherwise known as road tax. This can be done via Direct Debit on the Driver and Vehicle Licensing Agency (DVLA) website, on the phone, or at a Post Office branch.

tax-disk-300x291.jpg


Those who don't register for the tax, will be caught out by number plate recognition cameras which track each vehicle on the road. While the move aims to streamline services and, it is claimed, save British businesses millions of pounds a year in administrative costs, motorists are being warned to brush up on the new rules or face possible fines.

The change mostly affects those buying or selling a used car.

Anyone who buys a used car will no longer benefit if there are months left on the tax disc, as the vehicle tax will no longer be transferred with the car. This means buyers will have to renew their tax disc straight away, or risk being caught out on the road in an untaxed car.

The seller of the vehicle is responsible for informing the DVLA of a change of ownership, otherwise they could face a possible £1,000 fine. This can be done by filling out a V5C form and sending it to the DVLA.

Vehicle sellers will get an automatic refund for any full calendar months left on the vehicle tax.

Paul Watters, head of roads policy at the AA, said: "This is a huge change and vehicle owners and drivers need to be aware of the rules. A driver, not registered owner, can be issued a non-endorsable fixed penalty for driving an untaxed car. An owner can be fined £80 for using an untaxed vehicle (one not registered off the road) and can be charged any back tax."
Mr Watters said it was important all vehicle owners and motorists did their utmost to establish whether their vehicle was taxed or SORN'd (declared off the road) before driving the car. This can be done here.

Julie Daniels, head of motor at comparethemarket.com, said that the removal of the tax disc, which will in turn eliminate tax dodgers from the road, "should have a positive impact on premiums". The paper element of the driving licence, which accompanies the credit card size photo-card, is also due to be axed in January 2015.

Porsche News said:
End of Tax Disc risk greater evasion problem

End of car tax disc could see evasion match problem of uninsured drivers, says RAC

The motoring organisation fears the changes next month could result in the number of motorists failing to tax their cars becoming as high as the number who drive without Insurance.

The end of tax discs in two weeks could lead to a rise in evasion on road duty. The RAC has suggested that switching to an online system could lead to the number of motorists failing to pay Vehicle Excise duty becoming as high as the number who drive without Insurance.

tax-discs.jpg


Currently 0.6 per cent of cars do not have road tax – equivalent to £35million in lost revenue from the 210,000 cars driven without a valid disc.
If the same number of drivers who do not have Insurance, estimated by the Motor Insurers' Bureau to be around one million, also fail to purchase road tax then the cost to the Exchequer could be more than £167million, including the existing uncollected dues.

The motoring organisation said it calculates the costs in tax evasion will far outweigh the savings from not having to print and distribute the discs.

The DVLA said: "There is absolutely no basis to these figures and it is nonsense to suggest that getting rid of the tax disc will lead to an increase in vehicle tax evasion."

From October 1, drivers must tax their vehicles electronically, either online or at a Post Office, with those failing to comply facing a £1,000 fine. Drivers with time left on their paper discs will have their details uploaded automatically. A survey by the RAC also found 36pc of drivers were unaware of the scrapping of the paper disc, nearly half did not know when the change was due to take effect and 63pc feared there would be a rise in the number of untaxed cars on the road.

The background: End of tax discs

The tax disc, which was first introduced in 1921, will cease to exist in paper form from October 1, with a new electronic system being put in its place.
Under new rules announced in the Autumn Statement last year, motorists will now have to register their car online to pay Vehicle Excise Duty, otherwise known as road tax. This can be done via Direct Debit on the Driver and Vehicle Licensing Agency (DVLA) website, on the phone, or at a Post Office branch.

Those who don't register for the tax, will be caught out by number plate recognition cameras which track each vehicle on the road. While the move aims to streamline services and, it is claimed, save British businesses millions of pounds a year in administrative costs, motorists are being warned to brush up on the new rules or face possible fines.
The change mostly affects those buying or selling a used car.

Anyone who buys a used car will no longer benefit if there are months left on the tax disc, as the vehicle tax will no longer be transferred with the car. This means buyers will have to renew their tax disc straight away, or risk being caught out on the road in an untaxed car.

The seller of the vehicle is responsible for informing the DVLA of a change of ownership, otherwise they could face a possible £1,000 fine. This can be done by filling out a V5C form and sending it to the DVLA.
Vehicle sellers will get an automatic refund for any full calendar months left on the vehicle tax.

The background: Why so many uninsured drivers?

The fast-rising cost of car Insurance, especially for younger drivers, has increased the temptation to break the law and drive without cover.

Drivers are facing huge increases in premiums mainly thanks to fraudsters who make money by submitting false claims. In the four years up to last year, the cost of Insurance nearly doubled, according to the AA. Measures to tackle the issue have helped bring Insurance down a little in the past year - by around 7pc - but the problem remains.
 
Vehicle tax changes from 01 Oct 2014: new rules & fines

From 1 October 2014, the paper tax disc will no longer need to be displayed on a vehicle. If you have a tax disc with any months left to run after this date, then it can be removed from the vehicle and destroyed. This includes customers with a Northern Ireland address, however they will still need to display their MoT disc.

You can apply online https://www.gov.uk/tax-disc to tax or SORN your vehicle using your 16 digit reference number from your vehicle tax renewal reminder (V11 or V85/1) or 11 digit reference number from your log book (V5C)

This video explains the changes to vehicle tax from 1 October 2014.



What this means to you

To drive or keep a vehicle on the road you will still need to get vehicle tax and DVLA will still send you a V11 or V85/1 renewal reminder when your vehicle tax is due to expire. This applies to all types of vehicles including those that are exempt from payment of vehicle tax or have a nil rate of Vehicle Excise Duty (VED).

Buying a vehicle

From 1 October, when you buy a vehicle, the vehicle tax will no longer be transferred with the vehicle. You will need to get new vehicle tax before you can use the vehicle.

You can tax the vehicle using the New Keeper Supplement (V5C/2) part of the vehicle registration certificate (V5C) online https://www.gov.uk/tax-disc or by using our 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.

DVLA are unable to check the vehicle Insurance details for new keepers in Northern Ireland online or by phone. If you're a Northern Ireland new keeper, you will need to tax at a Post Office® branch that deals with vehicle tax.

Selling a vehicle

From 1 October, vehicle tax is not transferable so you won't be able to include any remaining tax when you sell a vehicle. If you sell a vehicle after 1 October and you have notified DVLA, you will automatically get a refund for any full remaining months left on the vehicle tax. The refund will be sent to the keepers details on DVLA records so you need to make sure that these are correct.

Vehicle tax refunds

You will no longer need to make a separate application for a refund of vehicle tax. DVLA will automatically issue a refund when a notification is received from the person named on DVLA vehicle register that the:

- vehicle has been sold or transferred
- vehicle has been scrapped at an Authorised 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)
person on the vehicle register has changed the tax class on the vehicle to an exempt duty tax class

Parking permits or car parking spaces

All local authorities have been informed that no tax discs will be issued after 1 October 2014.

Driving your vehicle abroad

DVLA have informed the European Union that from 1 October 2014, UK registered vehicles that are travelling in the EU will not display tax discs.

Paying vehicle tax by Direct Debit

From 1 October 2014 (5 October if setting up at a Post Office®), Direct Debit will be offered as an additional way to pay for vehicle tax. This will be available for customers who need to tax their vehicle from 1 November 2014:

- annually
- 6 monthly
- monthly (12 months tax paid for on a monthly basis)

Tax will be automatically renewed and the Direct Debit payments will continue to be taken providing an MOT is in place at the point of tax renewal. Payments will continue automatically until you tell DVLA to stop taking them or you cancel the Direct Debit with your bank. Valid Insurance should also be in place for vehicles registered in Northern Ireland.

The Direct Debit will be cancelled and payments automatically stopped when you tell DVLA that you no longer have the vehicle, or the vehicle has been taken off the road and a Statutory Off Road Notification (SORN) has been made. The Direct Debit will also be cancelled if a vehicle is scrapped by an ATF, exported or if the tax class of the vehicle is changed to an exempt duty tax class.

When the Direct Debit scheme can't be used

Paying by Direct Debit will not be available to:

- first registration vehicles
- fleet vehicles licensed in bulk schemes - Direct Debit can be set up on fleet vehicles individually
- HGVs that pay the Road User Levy (all other HGVs can pay by Direct Debit)

Checking the tax status of a vehicle

You can check the tax status of any vehicle https://www.gov.uk/check-vehicle-tax online. This can also be used for rental vehicles.



tdiscs_200.jpg
 
I wonder if anyone at the DVLA has considered that Insurance companies do not immediately upload the Insurance cover information to the DVLA database, and indeed have 48 hours to do so; You can not obtain a road fund licence without proof of Insurance, and therefore can not ( currently anyway ) purchase a car then go immediately go to the post office and purchase a RFL for your newly purchased car as their database won't be updated immediately.
Surely they'll have thought about the delay in the system......won't they???
 
F15HAR said:
Surely they'll have thought about the delay in the system......won't they???

I seriously doubt it. :nooo:

Similarly, 'the system' relies heavily on the current owner sending the V5 off immediately. In the real world this will take a day or two at least, add postal time and DVLA processing and 'the system' won't know who the new registered keeper is for a week at best.

We'll know soon how well thought through it's been :popcorn:
 
T8 said:
Similarly, 'the system' relies heavily on the current owner sending the V5 off immediately. In the real world this will take a day or two at least, add postal time and DVLA processing and 'the system' won't know who the new registered keeper is for a week at best.:

Won't this allow sufficient time for the new onwer to get the Insurance recognised by the DVLA and then apply for the tax disc? I think this is a non-issue...
 
chimp911 said:
T8 said:
Similarly, 'the system' relies heavily on the current owner sending the V5 off immediately. In the real world this will take a day or two at least, add postal time and DVLA processing and 'the system' won't know who the new registered keeper is for a week at best.:

Won't this allow sufficient time for the new onwer to get the Insurance recognised by the DVLA and then apply for the tax disc? I think this is a non-issue...

Actually, you're right chimp'. It should be a 'non-issue' as nothing will really be changing from the current situation.

I did wonder how 'the system' would cope if somebody buys a car and attempts to tax it that day when 'the system' doesn't recognise them as the registered keeper but (after thinking about it) I suppose that's the same as now too. ie. You have to use the V5C.

Apart from not having to display a tax disc it looks like the only real change is that you can't transfer the remaining tax when you sell the car.
 
tax due end of October, so what do I do :?
 
churny said:
tax due end of October, so what do I do :?

If, like me, you already pay online via the DVLA website each year then you won't need to do anything different, other than perhaps remove the redundant tax disc holder from your windscreen... :thumb:
 
And when the DVLA send you your reminder next year that you need to pay them a few quid, book your car in for an MOT. That should give you at least 3 weeks to get your ticket and car taxed.

Your "tax disc" reminder then also serves as an MOT reminder...
 
The main difference here is that every time you buy a car now you have to buy tax. Very sneaky of the government to phase out the carry over without anyone even noticing.

So if you sell your car on the 2nd October you lose that entire month in your refund as they will only refund a full month. So for that month the car will effectively have been taxed twice. Now multiply that by how ever many cars are bought and sold every day and you have a lot of new revenue for the government to spend on their moats!
 
Above is THE major change, double income stream
 
Well if everybody sells their car on the last day of the month... we all get the correct tax back owed and the new owner get a full months tax that they paid for.. as the car would have two lots of tax paid on for that month.. money grabbing tax man !
 
jonttt said:
Above is THE major change, double income stream

:?

Under the old system you would only get full months refunded if you sent your tax disk back and if you taxed a car on eg. the 25th, you had to pay from 1st.

They've always had that double income stream.
 
T8 said:
jonttt said:
Above is THE major change, double income stream

:?

Under the old system you would only get full months refunded if you sent your tax disk back and if you taxed a car on eg. the 25th, you had to pay from 1st.

They've always had that double income stream.

Right but the difference now is when you sell your car you MUST get the reimbursement for your tax and the new owner buy a new one, hence the double taxing of the car. That was not previously the case.
 
isysman said:
Right but the difference now is when you sell your car you MUST get the reimbursement for your tax and the new owner buy a new one, hence the double taxing of the car. That was not previously the case.

True. I suppose 'the change' is actually that the DVLA now get a better chance of achieving that double tax.
 

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