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New Tax Disc Rules: Avoiding a £1,000 Fine

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You may have heard many a Chinese whisper around the new tax disc rules coming into effect in October, but what you may have failed to see is these changes written in black and white. Although there’s been many a passing comment, we’re a little disappointed in the lack of action taken in informing the public of the new rules that could potentially result in many vehicle owners receiving a hefty £1000 fine.

A financial advice and comparison website found that from a recent study of 1000 people, only 60% of those surveyed were aware of the new tax disc rules, and even more worryingly only 50% of these knew when the changes were going to be brought into effect.

So, enough talk about the lack of knowledge – what exactly are the new tax disc rules coming into effect on 1st October 2014?

The eradication of Tax Discs

Take a long look at your tax disc, because as of 1st October it will be time to say your goodbyes. For some time now inspectors patrolling the roads have been using automatic number plate readers (ANPR’s) instead of looking at the tax disc on every vehicle – replacing the need to actually display it.

The DVLA has a digital record of all vehicle tax payments, so don’t think you can now get out of not paying the tax owed on your vehicle. In fact, you’re more likely to get caught and fined thanks to their state of the art electronic system.

But for those of you who don’t embrace change well, you’ll be pleased to see the DVLA have not seen off the handy tax renewal reminder (V11), whilst still being able to pay via the traditional forms – phone, post, online or Post Office.

Vehicle tax can no longer be transferred after a sale

If you’re in the market for a used vehicle, we would certainly advise you to narrow down that search before the end of the month.

Any person purchasing a second hand vehicle will have to apply for a new tax disc as of 1st October 2014. Any remaining tax on a vehicle can no longer be transferred after the vehicle has changed ownership.

Unlike previously, the seller will no longer have the need to fill in a separate form to claim back the tax remaining on a vehicle. Instead any full calendar months left of tax left on the vehicle will automatically be refunded to the seller upon notification of the transfer of ownership.

It is therefore now down to the seller to notify the DVSA of a change of ownership otherwise they can face a fine of up to £1000.

You can now pay by Direct Debit

Despite dishing out useful reminders via post, there are still a large percentage of vehicle owners at risk of being fined by forgetting to renew their tax disc. The DVLA have addressed this problem by setting up a brand new Direct Debit system available to those renewing their vehicle tax from 1st November 2014.  Providing you have a valid MOT, you will be able to opt for yearly, 6 month or 12 month instalments.

According to reports, around 1 in 3 car owners struggle to pay for their vehicle tax having to borrow money or dip into savings. Therefore, by stretching the payments over the course of the year many could find this to be a viable option to help spread the costs.

But just as with your car insurance, you’ll find that opting for the monthly instalments will incur a 5% increase in your overall spend. And for those wishing to pay via credit card, you should also expect a £2.50 surcharge.


Ultimately, we’d like to hear what you think of these new changes. For starters, were you even aware of these changes that are coming into effect at the end of the month? Are you happy with the new rules and are you pleased to see the option of paying in monthly instalments? On the other hand for a more detailed review of all the upcoming changes please visit gov.uk.


  1. Michael fox |

    Only issue I can see is it makes the sales side of secondhandcars alot harder. By the soundsofit the buyer instantlyhas no tax? Do how do you drive home? Send the seller has another responsibility to inform dvla.

    • philip Clayton-smith |

      If you buy a car, you can purchase tax electronically on line, so no excuse really, plus also you won’t get tax refund until they receive transfer of ownership, v5, so technically, it will still be taxed,

  2. Richard lowe |

    I will be expecting a full refund regardles of when the vehicle sells. Im pretty sure once the european courts are notified of this robbery. They will demand that tax is refunded for any days remaining in the month

  3. Imac Unt |

    Michael Fox, can you go back in time and buy me a supply of tax discs from 1970 as I’m running out……thanks!

  4. Brian penny |

    I complained to the minister of transport regarding particularly, the removal of ability to transfer road tax, amounting to the state being paid twice for that month.
    I basically got told tough.
    Something I’ll be bearing in mind when the conservatives come around begging for votes in a few months.
    If the system is digital and handle direct debits, then why pay by the day.

  5. Tim Reeves |

    It’s a waste of paper any way but on the down side number plate recognition systems do just that so you can get any number plate made at our local market so its that simple to copy a number plate stick it on the same model coulor car & you’ve got away with it from the NPRS systems just a thought…!

  6. Lavinia |

    I shall miss the disc, it’s a good reminder of when your tax is due. As for the new rule on non-transferable tax… it’s simple theft!!! I fear they will get away with it, but I think it’s disgusting!!!


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