Car Tax

New Vehicle Tax Rules

As we all know, or should know, on 1st October 2014 the rules referring to that little round piece of paper we are all so “fond” of changed.That’s right if this is news to you, there’s a whole new way of how we tax our vehicles.So I’ve put together the basic rules and the odd fact on the new system so that you don’t get caught out, and slapped with a fine!!

You might be thinking that this article may be too little, too late, but recently I have seen on the news and in newspapers that people are still getting caught out and fined.Also some people are completely oblivious still to the fact changes have been made.So take a few minutes and just make sure that you understand the new system.

Do I need to display a tax disc?

Under the new rules it is no longer a legal obligation to display a vehicle tax discs.So, if you’ve still got a valid disc in your windscreen, say goodbye because it’s the last one you will have.You no longer need to display a tax disc because all your vehicle details are now held on an online database; this database contains things such as vehicle tax, MOT and insurance.So any official body i.e. the police can check any of your vehicle particulars instantly! You can even check your tax and MOT yourself just by going to

Is vehicle tax transferable?

The tax on your vehicle is not transferable in the new rules.This means you cannot buy or sell a car with tax.This is where a lot of motorists have been getting slapped with fines, because people are selling cars apparently with tax on them because the vehicle has an in date disc displayed in the windscreen, but this is not the case because the disc is no longer valid and therefore the vehicle is no longer taxed if there is a change of ownership. The new owner of the vehicle is required by law to apply for vehicle tax immediately (if you’re going to buy a new vehicle probably best to apply for tax before you go to pick it up).

Do I need to apply for a refund when selling my vehicle?

Refunds of remaining tax on a vehicle when sold or scrapped are automatic. So no need to apply to for a refund, when the vehicle is logged on the database as a new owner or has been scrapped there will be a refund sent automatically, to the name and address that is on the v5 (logbook). However, it is worth taking note that you only getting a refund for the full remaining months left on the vehicles tax, for example if you sold a car half way through the month, your refund will start from the following month, and you effectively lose the money for the remaining of the month you sold it.

How do I apply for my tax?

Well not everything is changing before our eyes, you can still take your documents to the Post Office and get your vehicle tax, just now you’ll only leave with a receipt and not a pretty coloured disc that we proudly put in our windscreen with the rest of the collection that we have paid for over the years.However, finding a Post Office that does vehicle tax these days is proving to be more of a task.There is now a phone number (0300 123 4321) that you can ring and apply and pay for your tax, you can ring this number 24 hours a day and 7 days a week.But, what seems to be the most popular and simplest way is by going on-line for your tax, you can do this by going to and following the easy instructions.

How can I pay for my tax?

The main way of paying for your tax whether by phone, on-line or at the Post Office, is probably by debit or credit card, obviously if you like to go in person to the Post Office you can still use good old fashioned cash.You still purchase your tax either 6 monthly or 12 monthly, but the government has now added that you can purchase 12 months of tax but you can pay by a direct debit.This means the price of your tax is divided by 12 and is taken automatically on a monthly basis.After the 12 months is up your tax is then automatically renewed unless you cancel the direct debit, so no more forgetting to renew your tax and realising when it’s too late.However it is worth noting that use of the direct debit service comes at an extra charge, your annual tax will be slightly higher than a one off payment, but the monthly payments make it more manageable for those watching the pennies!

So there you go the basics of the new vehicle tax rules explained, I hope that it has put you in the know and has cleared up any grey areas. Hopefully now you’ll be able to avoid breaking the law and getting any unwanted fines.If you do require any more information on the new system or how it may personally affect you further information can be found at