The death of the tax disc has been well documented. According to some sources the government had been planning its demise since 2012, and it was formally announced in the Autumn statement last year. The effect is that from 1 October 2014, the DVLA will stop issuing paper tax discs. This move is predominantly a cost-saving measure - reportedly to the tune of £10 million per annum for the taxpayer. Payment of road tax (or Vehicle Excise Duty to give its proper name) has been recorded by a computerised database for some time. This is linked to registration plate recognition cameras which check that cars passing the camera have valid road tax. The days of plod (or your busy-body neighbour!) visually checking a car’s tax disc in the windscreen are now long gone. But as such, there are some things you need to watch out for. . . .
Firstly, road tax will no longer be transferable and you will not be able to sell a car with several months tax left on it. The new owner of the car must tax the car as soon as he or she takes ownership of it. The seller can then claw back unused tax by filling in a form. It is still the responsibility of the seller to ensure that the V5 is sent away to notify of change of ownership.
If you buy a car and do not tax it straight away, you are liable for a £1,000 fine.
For cars that are already tax exempt, no form needs to be filled in to declare the tax situation, and the V5 can be sent off as normal to notify change of ownership.
Further details of this process and form is yet to be released but we will keep you abreast of the changes as they come into effect in October. Thankfully, the number of P6s requiring taxation is becoming smaller and smaller with each year as the rolling exemption comes into effect, and all P6s will be free of tax on 1 April 2018.