posted 4 years ago

Don't Fall Foul to New 'Car Tax' Rules

New regulations cause fines for Motorists

The new DVLA changes to the vehicle tax rules is causing total confusion to motorists, the understanding of the new regulations is not as clear cut as first reported. Drivers are being caught out daily over used car sales due to the vehicles tax being automatically cancelled when it is sold even if the tax disc is in date.

Before the changes came into place those selling used cars would advertise with vehicle tax included until a certain date, now the tax automatically expires on a sale. Sellers will get a road tax refund from the DVLA for any remaining months. The DVLA will automatically send the tax refund on a sold car when they receive notification that the car has been sold, scrapped, exported or taken off the road with a Statutory Off Road Notification (SORN). New owners have to tax the car and many are being caught out and receiving a hefty fine or even clamping. A couple returned from their holiday to find their car had been towed away to a pound for non payment of car tax and were charged £822 for return of the vehicle, this was due to the couple deciding to inform the DVLA they had swapped ownership of their cars without realising it meant the tax for both of their cars would be cancelled. Another motorist was issued a fine of £650 when he was given a car by an emigrating motorist, again he was unaware the tax automatically expired.

Reports show that since the paper discs were phased out clampings have risen dramatically, previously at around 5,000 vehicles a month figures show now at a massive 8,000. The DVLA have no sympathy and say that the new rules have been publicised widely. A letter is sent to all new car owners to inform them to tax their new car before they use it, but it is looking quite obvious that confusion is the state of play as motorists obviously think if the tax has not expired then there is no need to renew. 


I agree with Dennis Tate. Spot on!

If you think it's bad now with tax 'trickery' , just wait until Ed and his band of M@rxists set up 'government'. They and Nikki Splurgeon will be splashing your cash , lifted from your very own pockets, to help their cronies in Scotland.

Brought new car on 1st of the month but was unable to tax it on the last day of the previous month for the next month - would have had to pay for the whole of the previous month even though didn't have the car. Old car was part exchanged, so the tax for that wouldn't be cancelled until the 1st of the month. Whichever way you play it, we pay the DVLA will get one months tax when we don't have the vehicle. Nice little earner!

The DVLA should revise the rule where if a vehicle is sold with remaining days on the tax disc up to that month let the new owner have them,this would give that person some freedom and that bit extra time for tax renewal.Why should the DVLA benefit twice for that part used month.Give us motorist some fairness and leniency, we get ripped off right left and centre by pure greed.

I agree, its not rocket science!

I'm surprised this issue is creating such polarised views. Surely DVLA should exercise a bit of leniency as advocated by Robin Owen. Perhaps this should be in one of the election manifestos

And yet ive been waiting over 3 months for my car tax refund from the DVLA

If they were not in it to rip us off, then they should have an initial period of a few months to just warn offenders, so everyone could get used to the rules. Bob Savage, if you are going to call people "stupid", make sure you can spell..."banded"?

Another case of government white collar workers trying to justify their existence, and imbiceles making rules without thinking them through.The government have publicised the new laws, but i havent seen them advertise the phone no enabling you to tax a vehicle when you purchase. They hide that so they can fine us more.

If you are that stupid you can't understand the new tax rules, you should not only get a fine, you should have your driving licence away. Unbelievable article. How stupid is our country? They are also the kind of stupid and annoying driver that just sits in the middle or outside lane of the motorway as they can see a car half a mile away that they might catch up to over take. They never look in their mirrors or if they do they can't work out approaching speeds of vehicles behind them and just pull out. Let's get these drivers banded from using the roads and make our roads safer.

Anyone who cannot understand the law should not be driving to begin with.

So let me get this straight.If I buy a car I cannot move it until I have taxed it. Meanwhile if it parked outside the sellers house they can come along and impound it. So what am I supposed to do?

the car is taxed to be on the road till the end of the month so how can they clamp the car it should go to is robbery

I think it's rip off another scam way of ripping of the public. As if we're not being robbed with being a owner of car? Car tax. Car insurance, mot etc etc

who has given all this power to the DVLA Its not a criminal offence not to tax your car its civil offence so it looks like the mps in westminister have given the DVLA the right to be judge and jury and charge a motorist what they like which must be illegal it needs somone to right to the court of human rights in the EC to stop them once and for all as its discuting what is happening

A few months ago I was going to sell my deceased father's car which I had taxed a month beforehand to a friend of my wife. Because of the car tax changes, I phoned DVLA for clarification. They told me that if I sold the car to my wife's friend, the tax would be valid until the expiry date on the disc. - It looks like even the DVLA are confused by the new rules.

The answer is simple and really, not a lot has changed, so most people's calculations of the amount the Government is making are largely inaccurate. Under the previous system, if you bought an untaxed/new car before the end of the month, you still had to pay the whole month. And you never got a refund for a part month if you sold the car. Having bought an untaxed car last week and sold a taxed one in part-ex, we taxed the new car on the spot. The old tax for April is being refunded due to a fiddle that any car dealer will advise you on. So no double payment with dealers. If you buy privately, just do not action the V5 change until the end of the month but get the buyer to sign a receipt to show they took ownership on that date in case any parking fines etc. come through in the meantime. I've recently done this and drove home knowing that the new car would not show up on any ANPR cameras as untaxed, because it was taxed and DVLA do not know of the change. If you don't want to take the very small/insignificant risk involved, then lose (not 'loose') part of a month. My new car cost £20 per year to tax, so when it comes time to sell it, I can't be bothered to worry about the less than £2 lost. With modern cars it's hard to lose (not loose) more than £10 that you would have lost anyway. A friendly policeman told me that they show flexibility for at least a month and they accept the dealers' fiddle as totally legit. "Just don't tell people otherwise that loophole will be closed."

It's another government tax scam! They must be making £millions from the part months of tax they don't refund you for. In my opinion they should at least give you the benefit of the doubt up to the end of the first month, after all they have had the revenue for it. If you buy a car on 30/31st month then it is a bit tough I guess, but the majority of the time it will give drivers the few days needed to sort the tax out.

Makes sense to only buy or swop etc at the end of the month, there does not appear to be any way of buying privately and getting the vehicle back to your home because its untaxed apparently as soon as you take ownership.

I got a letter from DVLA saying my tax ran out in january and I had to tax it the tax on my car is zero but still had to do it so be careful even if nil payment is your tax levy

politicians and civil servants have not got a clue when it comes to new rules and new laws they could not organise a party in a brewery!!!!!!!!

£10 is not much??? If the 8000 motorists a month is correct and the average fine is £500 that's somewhere in the region of £480 million a year in fines !! Disgusting DVLA, sort it out

yeah sounds like the dvla..up to its old tricks again..however direct debits are supposed to fee gas waster why do we pay an extra bit when i pay monthly??? the excuse that its not a direct debit fee is hogwash..if someone can afford to pay road tax in one hit(i cant minimum wage) thats extra bit to pay..but why do those who cant do it be penalised by a fiver? like thousands of workers i try hard to budget for everything..even bus passes for my son at college..yet im penalised for needing to pay monthly!!!!

I wont take issue with the fact the government are making extra money out of this, however I dispute that it was widely advertised. If it wasn't for columns like we are reading I wouldn't have known tax discs were disappearing, and a dealer told me that I had to tax a vehicle that had 5 months tax on the disc when my mother in law handed my wife a spare car. I don't remember seeing any TV advertising campaign or newspaper spreads, there were no reminders or updates in the tax reminders over the last 12-18 months either.

Regarding vehicle road tax if a vehicle is sold in the middle of the month we would only recieve the road tax refund from the start of the new month to include the remaining months tax If the new owner puts tax on the vehicle straight away he starts paying from the beginning of the month and so looses half a month This new tax system is another way to get at motorist it is very badly thought out and the instigators need to be disciplined over it

read robert uscroft 20/4/15 a idea very good

This is a rip-off by DVLA/Government! Double-taxing any vehicle is effectively illegal, and must be addressed

Sending a letter from DVLA to new owners is obviously going to be too late, the new owner will have started driving before they get the letter. What was wrong with the old system of the tax carrying on.

There's a lot of moaning here , it's simple and if you sell a car in the middle of the month you've lost half a month so you've lost what ' £10 big deal !! if the new owner doesn't want to pay for the previous two weeks park it off road until the start of the month or leave a deposit with the current owner and collect it at the end of the month it's not rocket science .and if you think the tories are ripping you off you have a short memory remember the fuel escalator and who filled the UK with speed cameras and encouraged us all to go diesel and then put the cost of derv through the roof ,and what about the scrapage scheme what a crock that was if your a motorists your more likely to have you pockets emptied by labour and the SNP !!!!

nothing but a big was not advertised widely as they state and it was not explained properly. just another way of fleecing you yet again. how are you supposed to drive the vehicle home if you cannot even get on their site to tax it at that moment. ive heard of lots of times where the vehicle was taxed on line only to be told at a later date that the payment didn't go through,usually because of the dvla. as I said,its just a money making con on behalf of the dvla .

The method of changing ownership is cumbersome. What you can do is get the car don't send the V5 to the DVLA instead take it straight to a post office with all the change of ownership details completed and signed by both parties the road tax it still current until you hand over the V5 at the post office You tax the car at the post office, they keep the V5 and send it to the DVLA. I have just done this with my 'new' car I wanted to change the Vehicle Class to Disabled as well which they did immediately at the post Office rather than wait a month for the changes to be registered.

Another draconian cash cow law preying on the vulnerable motorist - again.

Someone should take DVLA to court over this and file a class action. It is blatant theft. They must be stopped from doing this. A car doesn't need to be taxed twice at the same time ever. And Chris Rapley is right - if it's paperless and electronic, the tax can be switched over at any time of any day and rounded down to the penny.

Only partially agree with Nigel R regarding his comments about DVLA. I am a Civil Servant and certainly not overpaid. However, I too have been caught out by DVLA and they are very ruthless in hanging onto every bit of revenue they get. Big John has the better idea which just about everyone agrees with and that is 'road tax' should be added to fuel. Like John says if you are exempt for whatever reason then some form of repayment method (swipe card or proof of exemption should be available). This must be the easiest way of ensuring that you pay your way and cannot dodge the tax. It will also reduce the DVLA workforce and the clamping contractors and that can't be a bad thing.

If someone buys a car from a private owner how are they supposed to drive it away on that day? It will be immediately untaxed for the new owner! Have the DVLA thought about the practicalities? Why not give at least a weeks grace in order to complete and send the forms to the DVLA?

I sold my car two months after taxing it so should have got 4 months pro rata back but only got 1 month I complained via email was was told to put it in writing with reason why I thought I should get more money !!

The best thing to do is only sell the vehicle at the end of the month and pay by direct debit then when you sell the car the new owner must tax that vehicle asap , Then the buyer should tax it using direct debit that way its easy to cancel the road tax at the end of any month and easy to sorn the vehicle when not being used.

This new system was brought in for the sole purpose of letting the Government collect two months' road tax in the month the car changes hands. The previous owner does not get refunded the part month, whilst the new owner has to pay for the whole month over again. This is what you get if you vote for the "CON" servatives, remember that on May 7th!

No surprise that DVLA think they have done a good job at publicizing this change to years old ways of doing things! Once again they are wrong. Like most civil servants they have done a lousy job. Over paid and under performing.

They should do away with the tax altogether and instead put a heavier tax on fuel that way you pay for what you use and can not avoid paying. Those who are tax exempt for disability or other reasons should be issued with a photo identification card showing their vehicle details which would allow them to get fuel at a discounted rate.

Another stealth tax. As only full months are refunded the tax should be valid until the end of the month now it is not obligatory to display a tax disc.

The government does not keep any money. All that comes in immediately goes out, spent on something else. At the moment there is more going out than is coming in - that's called a deficit.

@roy Williams You seem to have a strange idea of what is right. The new tax rules are grossly unfair an are nothing more than a rip off. A lot of car owners do not really have a choice about owning a car, and even if they did it's still no excuse for the government to have complicated and unfair rules.

I see that car ownership and the vagaries of the car tax system is sufficient to fire up the political commentators! Our Scottish friend has got himself moderated over his comments about Tories and Scotland. It's a shame they failed to vote themselves out of the union. Would have saved a lot of the current rubbish going on with the SNP. And then we are encouraged to 'express our views' at the forthcoming election! For God's sake, is this the most important issue in a General Election?! Maybe the DVLA making a few million quid on the back of used car sales is the most important political issue for you guys but it's not for me!

With no displaying of any disc now, there is no reason why the taxation cannot stop and start on any date, thus there would be no double payment for any parts of a month.

This is hardly news. All the comments being made now were made then. Yes, the DVLA is raking in an extra months VED for every second hand car sold, plus they save the cost of printing the discs. Apparently over 7 million secondhand cars change hands each year. Even assuming a modest £10 as the value of a months VED (which is about the minimum), that's an astounding £70m+ extra revenue. Thats without the considerable inconvenience for most people. On the bright side, you have the opportunity to express your views on the way we motorist are treated in 3 weeks - make it count!

You would think that owning a car was rocket science! It's just a matter of taking responsibility and finding out what is expected of you - and paying up for the freedom and flexablity car ownership gives you. You would also think that if someone is going to post a response to an article, they would first read the article to see if their question is answered (eg Peter Willis). The unused tax is is refunded to the seller (full months only). DVLA keeps any money for part months. 'so the Government is winning again'. Yeh that wicked Government that keeps all that money for itself and does nothing for it or with it! The answer, if you object to spending money to run a car, is to not have one. You can then spend all your time moaning about the buses, trains or the state of the pavements. My neighbour bought a car in mid-October. Car had a tax disc on it showing expiry at end of December. I was not surprised that he drove that car until 31st December without taxing it. Not because he was 'confused' but because he is a chancer and tries any trick in the book to avoid doing what's right. Maybe a lot more like him about as I can't believe the suggestion that all these people are 'confused'.

It's abother tory scam to get money from you. I bought a car 1/4/15 so I taxed it from that day bit when the dvla received the v5 they cancelled the tax and wanted me to start another direct debit total tory scam. VOTE SNP FREE SCOTLAND

It does - but if you sell half way through a month - you will lose the whole of that month - and the new buyer will have to tax it from the start of the month - no pro rataing - so the Government are winning again!

Yes Peter, it does!