Car road or vehicle tax is to be abolished

Friday 29th August, 2014 at 16:08 COMMENTS (0)

I'm unashamedly dated when it comes to technology even to the point of getting nervous about the idea of losing the information being held on my computer and always print out hard copies of anything important. 

So I wasn't overjoyed when I heard that the paper disc that shows you've paid your Vehicle Excise Duty (VED) - commonly referred to as car, road or vehicle tax is to be abolished. 

Car tax disc abolished
The DVLA have announced that from 1 October, 2014, the paper tax disc will no longer be issued and required to be displayed on a vehicle windscreen. 

Car tax will still need to be paid but records will be stored digitally so a paper tax disc will no longer be necessary as proof of payment. 

Personally, I liked my paper tax discs as I prefer to have something physical in exchange for my money.  A bit like a receipt. 

Oddly, the act of removing it from its backing, making sure not to tear any of the little perforations and popping it into its holder felt quite agreeable. 

Pay car tax by direct debit from October 2014
There was also great enthusiasm at the introduction of direct debit payments for vehicle tax. 

From 1 October, 2014, motorists will have the option of paying via direct debit - either annually, biannually or monthly. 

There will be no additional handling fee for annual payments, but there will be a surcharge of 5 per cent for biannual or monthly ones. 

Currently motorists pay their car tax in advance, in a yearly or six-monthly instalment, with a 10 per cent surcharge for the latter. 

However, despite two six-month tax discs costing more than buying a 12-month one, many motorists do so as they cannot afford the cost of paying for a whole year upfront. 

Does this mean cheaper road tax?
No.  Although it's predicted the DVLA will save £10 million, it's the HM Treasury that decides how much we pay. 

Motorists welcome direct debit payments
Over a quarter of motorists buy a six-month tax disc whilst two-thirds of this number said they did so because they simply couldn't afford to pay for a full year upfront. 

But 64 per cent of those who bought a six-month tax disc said they would pay by monthly direct debit if given the option. 

Ban on transferring car tax to new owner
Another change that will take place as part of the car tax reform will affect private vehicle sales. 

When a vehicle is sold, it will no longer be possible to transfer tax to the new owner. 

The previous owner will have to reclaim the unused tax, and the new one will take on responsibility for taxing the vehicle. 

So, it's goodbye to the car tax disc, nearly making it to 93 before finally reaching its expiry date. 

If you need more information:
theres plenty of info at

What do you think?
Will you miss the paper car tax disc or do you welcome the introduction of direct debit payments?


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