Don’t get caught out by the new tax disc law, dealers warned


TAX DISC: Online from 1st October – it’s Law

As of 1 October 2014, the Driving Vehicle and Licensing Agency (DVLA) will make the widely publicised move from paper tax discs to online.

Vehicle information provider, HPI, is warning dealers to ensure they don’t get caught out with fines for a car they no longer have on their forecourts.

After the paper tax disc is abolished, dealers will no longer be able to purchase vehicles with a tax disc in force; tax discs will not be transferable when a vehicle is sold.

Dealers can either use trade plates, provided that the vehicle is used within the conditions for use of trade plates, or obtain new vehicle tax, if the vehicle needs to be registered in a dealership’s name.

Dealers and vehicle testers still need to apply and pay for a new trade licence once it needs renewing, but there will no longer be a paper trade licence to display with the trade plate.

The new rules no longer require a trade licence holder to display a trade licence; however the rules for trade plates will not change in October.

The new rules also put the onus on used car sellers to inform the DVLA, when they sell their vehicle.

Importantly, under the new rules, used car sellers, including motor dealers, are responsible for notifying the DVLA and then they will receive a refund for any months left on the vehicle tax.

Dealers who fail to inform the DVLA, could be fined and they will still be liable for vehicle tax on a car they don’t even own anymore.

Car owners still need to have vehicle tax to drive or keep a vehicle on the road, but now the DVLA is taking payments online, including Direct Debit payment options or motorists can visit their local Post Office branch.

Instead of using paper tax discs to spot tax evaders, police cameras will automatically check a car’s number plate.

Phil Peace, Commercial Operations Director for HPI, said: “We remind motor traders to always send the V5C to the DVLA, rather than relying on the buyer to do it.

“And always apply for a Certificate of Destruction (CoD) from an authorised treatment facility (ATF) for vehicles that are scrapped.

“We’re hoping that the new DVLA initiatives will make it harder for drivers to head out on the road untaxed.

“It’s easy to check if a vehicle is taxed by heading online at the Vehicle Enquiry Service, making this the first step for dealers and consumers alike who want to avoid the risk of fines.”


  1. So if it is on line and there is no paper disc the tax could and should be calculated on a daily basis and refunds made from the day that the DVLA receives notice that a car is sold. This of course means that the cash cow that is the modern motorist will be paying for days or weeks that they have paid for because the system is geared for that purpose. All of the other comments are also valid but you have to remember that the people who draft these things do not live in the real world. They have cushy jobs with index linked pensions and jobs for life, even if they are rubbish at the job. Strangely though, the seem to know how to screw the motorist at every turn. The HMRC get 20% vat on the car you buy new, which includes the 10% car tax, so you pay 20% on the 10% tax, as well as the price of the car. You pay a massive % of fuel duty, on which you also pay 20% VAT, you then pay insurance tax, road tax and VAT on every item you use to run your necessity. And this is just your car!!!! If you start adding up all the taxes we pay, which are then wasted by numpties from, Eton, Harrow and the numerous other public schools who care not a jot about the plebians over who they rule. Motorists should block every major road in the country for 3 hours in protest over the way we are bled dry by government of all shades.

  2. Sorry but common sense does not prevail when it comes to government departments. Greed and officialdom does however

  3. So when a service department takes a car up the road for a road test, they will have to check online to ensure the vehicle is taxed before the technician carries out the road test. Fine in a one-man band set up with only a few cars in each day, I’m sure the service manager will enjoy doing that for a larger franchise workshop with multiple technicians.

  4. I think no Tax Disc is brilliant and looking forward to throwing mine away EXCEPT now in most cases each time a vehicle changes ownership they will STEAL another EXTRA months (Stealth) Road Tax from us and I bet that adds up to a pretty penny each year, it would have been fairer since they are forcing us to surrender every time we sell a vehicle they could have easily refunded to the exact day and also charged a part month but NO that want the Tax TWICE PLUS the massive savings they will make in Admin, Postage and Printing cost.

    John makes a good point about Cloned Vehicles but it could be cured at a stroke and many criminals caught if the N.P.R.system was to set off an alarm as soon as a registration was spotted in two places at the same time the Police could then intercept the one that was furthest away from the genuine registered address as that would be the most likely culprit SIMPLES !

  5. With no paper Tax Disc displayed it will be so easy to clone any car the same as you own , i.e. just see another car same as you own and get their number order plates online and away you go the other person will have paid Tax and insurance so the Police check the plate on your car with the copy plates and ANPR will show all legal , o
    So more peoples cars will surely be cloned.

  6. Why do the government always make things difficult to enforce and not fair to drivers across the board. A much fairer and simpler system is to put the duty on fuel. You dont need to check on car dealers etc, everyone pays re the percentage they use the roads, OAPs who only do a few miles would pay proportianately against the company reps who drive thousands of miles Foreign visitors and Trucks would also pay their contribution. Surely it must be time for a bit of common sense to pre

  7. Being an older motorist, and having worked in the Motor Trade for over 40 years, there are clearly ideas that are an improvement on existing schemes, and those that are questionable! Whilst the old paper disc may seem old fashioned, it has served a purpose for as long as I have been on the road (50 years) Watch an see how many more cloned number plates start appearing when this scheme goes live!