posted 1 year ago

Millions of Motorists Missing a Trick with Unused Tax

It turns out that more than five million drivers last year had car tax refunded to them, that’s over £360 million. It’s not some sort of scam, or loophole either. They just sold their car.

Since the tax disc went virtual the DVLA have been struggling to get people to remember they actually need car tax. Millions of motorists totally forget, ending up driving around for months with no tax.

It seems as soon as motorists realise they can get the DVLA to give their money back, they’re suddenly more interested.

It turns out that more than five million drivers last year had car tax refunded to them, that’s over £360 million. It’s not some sort of scam, or loophole either. They just sold their car.

That’s right, since the rule change in 2014 you actually get the unused tax back, rather than it being sold on with the vehicle. Motorists still need to pay more attention though.

The normal way you’d get a refund is to tell the DVLA you’ve sold your car, by sending off the ‘New Owner’ part of the V5C in the post. But there’s a much quicker way, you can now do that online. Which means you’ll be refunded far quicker, possibly saving you a few quid in the process.

If you sell your car at the end of the month and then send off the details in the post the DVLA are more likely to process the refunds in the new month. Meaning you could possibly miss out on clawing back a month’s worth of road tax.

Going online also means you disassociate yourself with the vehicle faster, that’s a good thing. If you’ve just sold your motor and the new owner clocks 105 MPH on the M40, you could be liable for the points...even if you’ve sent off the right paperwork.

The change of ownership only happens when the DVLA receive your documents, what if it gets lost in the post, or delayed?

You’d have to fight those fines and prove you weren’t the one driving at the time, which can be especially hard if it’s a parking offence.

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Figures released by the DVLA this week show that only 40% of motorists are aware and currently use the system. Since launching the site has been used over 12 million times.

Rohan Gye from the DVLA mentioned that “some of our digital services have over 90% take-up” but there are “millions of motorists who tell us they’ve sold their vehicle by post”. The new website also means you’re refunded in just three to five days, while a new logbook will be sent out within the week.

All of this can take up to six weeks doing it the old fashioned way.

A word of warning though, you can’t use the service if you’ve already sent off your V5C in the post, so make sure you remember you can do it online going forward.

If you have no idea when your car tax or MOT is due Regit has a reminder service available. Simply pop your registration number in and we’ll keep you informed, it could even save you a month’s car tax if you end up selling. You can also check out the MOT history of a car you’re looking to buy.

Whatever your car needs just Regit