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The End Of The Road For Paper Tax Discs
The Tax Disc in it's paper form has been with us since 1921, but from 1st October 2014 it will no longer be used as proof that Vehicle Excise Duty (VED) has been paid in respect to that vehicle.
First announced in the Autumn Statement 2013, Chancellor George Osborne proposed the measure to reduce administration costs to the DVLA, businesses and motorists. The estimated annual savings to the DVLA are in the region of £7 million and will allow families to spread the cost and help manage their increasingly squeezed household budgets.
But what does this mean to the average motorist? What are the likely benefits or pitfalls?
Long gone is the good old excuse of “Tax is in the post, honest Officer” or skilfully crafting a beer mat or fag packet in the correct “colour de jour”, slipped into your windscreen hoping to fool your local village bobby.
Today’s technology and instant database access has rendered the use of paper tax discs obsolete. ANPR (Automatic Number Plate Recognition) cameras networks have been able to track UK vehicle movements in real time since March 2006. They are a part of our daily lives, installed on motorways, cities, town centres, filling stations and patrol vehicles, no matter what your opinions of them, they are here to stay.
To the majority of us law abiding motorists this is a welcomed reform, it gives flexibility of payment, being able to spread the cost in 6 or 12 lots of monthly instalments directly from your bank account, attracting a lower surcharge for buying bi-annually. A typical Ford Focus driver who currently pays VED bi-annually and continues to do so would be £9 better off over the year in the direct debit scheme, presuming none are bounced.
It means less stress hunting out paperwork consigned to the abyss of “somewhere safe”......... “I'm sure I put it in that folder under the bed......ahhh....this is where the hamster has been living for the past 2 months”
For the others, (you know who you are!!) buying a different “taxed and tested” vehicle every few months because you never bothered to sit your driving test, gave up after failing for the nineteenth time, or think that the rules don't apply to you, think again. In future when a vehicle is sold the tax will no longer be transferred with it, the obligation transfers to the new owner. Any remaining full months of VED will automatically be refunded to the seller, it is the buyers responsibility to purchase their own VED before they can legally use the vehicle.
A few key tips to avoid the downsides are:-
Anyone is able to check the status of Tax & MOT of a vehicle for free, simply by going to www.gov.uk/check-vehicle-tax , all you need is the vehicle registration number and the make, this is the approved UK Government site, be wary of others that may even charge a fee for doing this simple check.
Should you have any comments or concerns about the upcoming changes we would love to hear from you on this thread
The Tax Disc in it's paper form has been with us since 1921, but from 1st October 2014 it will no longer be used as proof that Vehicle Excise Duty (VED) has been paid in respect to that vehicle.
First announced in the Autumn Statement 2013, Chancellor George Osborne proposed the measure to reduce administration costs to the DVLA, businesses and motorists. The estimated annual savings to the DVLA are in the region of £7 million and will allow families to spread the cost and help manage their increasingly squeezed household budgets.
But what does this mean to the average motorist? What are the likely benefits or pitfalls?
Long gone is the good old excuse of “Tax is in the post, honest Officer” or skilfully crafting a beer mat or fag packet in the correct “colour de jour”, slipped into your windscreen hoping to fool your local village bobby.
Today’s technology and instant database access has rendered the use of paper tax discs obsolete. ANPR (Automatic Number Plate Recognition) cameras networks have been able to track UK vehicle movements in real time since March 2006. They are a part of our daily lives, installed on motorways, cities, town centres, filling stations and patrol vehicles, no matter what your opinions of them, they are here to stay.
To the majority of us law abiding motorists this is a welcomed reform, it gives flexibility of payment, being able to spread the cost in 6 or 12 lots of monthly instalments directly from your bank account, attracting a lower surcharge for buying bi-annually. A typical Ford Focus driver who currently pays VED bi-annually and continues to do so would be £9 better off over the year in the direct debit scheme, presuming none are bounced.
It means less stress hunting out paperwork consigned to the abyss of “somewhere safe”......... “I'm sure I put it in that folder under the bed......ahhh....this is where the hamster has been living for the past 2 months”
For the others, (you know who you are!!) buying a different “taxed and tested” vehicle every few months because you never bothered to sit your driving test, gave up after failing for the nineteenth time, or think that the rules don't apply to you, think again. In future when a vehicle is sold the tax will no longer be transferred with it, the obligation transfers to the new owner. Any remaining full months of VED will automatically be refunded to the seller, it is the buyers responsibility to purchase their own VED before they can legally use the vehicle.
A few key tips to avoid the downsides are:-
- Make sure the sale takes place at the beginning/end of the month to get value for money. If selling only full months VED will be refunded and if buying only complete months can be purchased.
- If paying monthly by direct debit, ensure enough funds are available to avoid missed payments, failing to do so would cancel the VED and if you continue to use your vehicle you will be doing so illegally.
- Bouncing a direct debit could also incur hefty bank charges, don't get caught out!
- ALWAYS make sure you get proof of postage when you send off your V5C (logbook), the DVLA have a nasty habit of “losing” paperwork. Ask for confirmation of receipt from the buyer with their details.
Anyone is able to check the status of Tax & MOT of a vehicle for free, simply by going to www.gov.uk/check-vehicle-tax , all you need is the vehicle registration number and the make, this is the approved UK Government site, be wary of others that may even charge a fee for doing this simple check.
Should you have any comments or concerns about the upcoming changes we would love to hear from you on this thread
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