From the 1st October 2014 there will no longer be physical tax discs issued, it will all be done electronically.
The tax disc was first introduced in 1921 and this move is probably the biggest car tax has seen since then!
Drivers will have to register their car online to be able to pay for car tax or Vehicle Excise Duty as it’s known.
Drivers can then pay by direct debit online on the DVLA website, over the phone or at a Post Office. People who don’t pay for their tax will be caught using number plate recognition cameras which are cover the roads, tracking drivers moves.
Apparently, it will save businesses millions of pounds a year in admin costs – but will it cause more trouble and money to actual vehicle owners??
It will surely save the police some time by not having to physically go round checking all the vehicles on the road!?
People who will be buying used cars will lose out with the new scheme – a new owner will no longer have a certain amount of tax on a car when they buy it as remaining tax now gets refunded to the previous owner automatically by the DVLA. This means new owners will have to pay out immediately for 6 or 12 months tax, otherwise they will be driving round without tax and will get fined £80 and even may be charged backdated tax!!
Sellers of the used vehicle will be responsible for notifying the DVLA of the sale and face a fine of £1000 if they don’t. They will be quids-in as they will have their tax refunded automatically to put towards their own newly purchased car.
Comparethemarket.com head of motor, Julie Daniels, has said that the removal of the tax disc, which will in turn eliminate tax dodgers from the road, “should have a positive impact on premiums“. Whether it will or not is another story!
People who have current tax on their cars which will expire after 1st October don’t need to worry, they should continue displaying their current tax disc until it has expired.
One does have to wonder though whether making everything electronic will only cause more headaches and problems… technology is fantastic but sometimes you just can’t beat good old fashioned methods! When technology goes wrong it usually goes wrong in a big way!
Let’s hope it all goes smoothly!