Mike Humble:

Drivers will no longer have to display a tax disc in their vehicle from this October as the DVLA is changing the law to get rid of the need to display a paper tax disc, but you will still need to tax your vehicle.

With a new electronic system being put in its place, the tax disc will cease to exist in paper form. From October 1, Motorists will have to register their car online to pay their road tax. They can do this via Direct Debit on the Driver and Vehicle Licensing Agency (DVLA) website or at a Post Office branch.

New tax disc rules:

Drivers are being warned to learn about the new rules, which were announced in last year’s Autumn Statement, or face possible fines. Number plate recognition cameras will track each vehicle on the road and those who do not register for the tax will be caught out by the cameras.

The change mainly affects those who are buying or selling a used car as vehicle tax will no longer be transferred with the car.

Unlike before, motorists who buy a used car will not benefit if there are months left on the tax disc. As a result of this, buyers will have to renew their tax disc instantly, or risk being caught out on the road in an untaxed car.

As well as this, 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.

It is important for all vehicle owners and motorists to find out whether their vehicle was taxed or SORN’d (declared off the road) before driving their new car. This can be done by visiting http://www.vehicleenquiry.service.gov.uk

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

The move aims to streamline services and has been claimed to save British businesses millions of pounds a year in administrative costs.

So… the main questions are:

1.Who will this apply to?

Everyone who needs to tax their vehicle.

2.Will the police continue to check the tax status of vehicles?

Yes. With no visual check available the police can look up a registration number on the Police National Computer (PNC) system. Automatic Number Plate Recognition (ANPR) cameras will also recognize untaxed vehicles.

3.What happens if the police recognise an untaxed vehicle?

The police will inform DVLA, which will issue an enforcement notice to the registered keeper of the vehicle.

4.Will the lack of a tax disc hinder the police in checking the tax status of vehicles?

No. Enhanced IT capabilities more than make up for the loss of the visual check.

5.Will this lead to more people not paying their vehicle tax?

DVLA takes enforcement action directly from the vehicle register. The use of tools like Automatic Number Plate Recognition (ANPR) cameras and wheelclamping also enforce more effectively against those who fail to pay their vehicle tax. These enforcement measures have helped to improve compliance and vehicle tax evasion is at a historic low. The latest estimate of vehicle excise duty evasion is just 0.6%. There is no evidence to suggest that getting rid of the paper tax disc will make this increase

6.Will DVLA or the police allow any grace period after buying a vehicle in which to get it taxed?

No. From 1 October it will no longer be possible to transfer the benefit of vehicle tax to the new keeper when a vehicle is sold and the person buying a vehicle will always need to license it immediately. This provides protection and clarity to motorists of what their responsibility is as it will prevent the new keeper of a vehicle from unknowingly keeping an unlicensed vehicle. There will not be any grace period

7.How does this work for vehicles that are exempt from payment of vehicle tax, e.g. Disabled tax class?

The requirement to apply for vehicle tax will not change for any individual including those in the Disabled 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.How will I know if a vehicle is taxed?

Any person may check the tax status of any vehicle by using DVLAs Vehicle Enquiry System. The vehicle enquiry system can be accessed by visiting http://www.vehicleenquiry.service.gov.uk/

10.What if I need a tax disc to get a parking permit/car parking space?

All Local Authorities will be made aware of the change to law where tax discs will no longer be available.

For more information visit: http://www.gov.uk/dvla/nomoretaxdisc