End of the road for paper tax disc

Papers and trade journals are full of the fact that it is the end of the road for the paper tax disc, as the Driver and Vehicle Licensing Centre (DVLA) will replace it with digital tax records later this year.

From 1 October, a paper tax disc will not be issued or required to be displayed on a vehicle windscreen when vehicle excise duty, commonly called road tax, is paid. Anyone paying road tax from this date must do so online via Direct Debit on the DVLA’s website or at a Post Office branch.

In addition, when a vehicle is sold from 1 October, any outstanding tax on it will be refunded to the vendor, leaving the vehicle untaxed. The new owner is responsible for taxing the vehicle immediately or could face a £1,000 fine. The DVLA will retain digital records of taxed and untaxed vehicles, which the police will be able to access. The seller will get an automatic refund for any full calendar months left on the vehicle tax.

Meanwhile, as far as car dealers are concerned, they will no longer be able to purchase vehicles with a tax disc in force and tax discs will not be transferable when a vehicle is sold.

They can use trade plates on a vehicle, provided that it is used with the conditions for use of trade plates, or obtain new vehicle tax if it needs to be registered under the dealership’s name.

As a spokesman for the AA pointed out, this is a huge change and vehicle owners and drivers need to be aware of the new rules, as an owner can be fined £80 for using an untaxed vehicle, one which is not registered as being off the road, and can be charged any back tax.