Aug 29 2014
October is a big month for UK drivers with vehicle tax changes coming – both in how it is paid and how drivers have to prove that they have paid it. These changes were brought about by the Chancellor of the Exchequer in order to reduce administration costs, overhead, and reduce the burden on drivers.
The first change that drivers will notice is that they are no longer required to display a tax disc on their windscreen to prove that they have paid their road tax. These ugly stickers have been adorning cars in the United Kingdom for nearly a century. As the tax administration moves into the 21st century, records of who has paid their taxes will be kept electronically. The police and other authorities will be able to quickly consult a computerized system to verify vehicle tax compliance.
As the stick-on discs are phased out, some motorists may be asked to print out and keep a paper copy of the disc until October 1st.
The next big change is in how motorists can pay for their road tax. Drivers can now spread out their payments if they so desire. Those who continue to pay on an annual basis will incur no additional costs but those who wish to pay monthly or biannually by direct debit will incur a 5% administrative fee. This change was brought in response to the burden that vehicle tax payments place on many families – many of whom reported going into some form of debt either to lenders or to family just to make payments.
There has also been a change in how vehicle tax carries over during the resale of a vehicle. Buying a car second-hand no longer means that you have purchased the vehicle tax that has already been paid. You will have to pay full vehicle tax on the second hand vehicle. The seller of the car can submit paperwork and receive compensation for the remaining time left on the vehicle tax of the sold vehicle.
All of these new changes will go into effect over the next two months but many UK motorists are still unaware of them. Drivers who are found to be out of compliance with the new rules can be fined as much as a thousand pounds. Make sure that you contact your local offices to make sure that you are in compliance with the new rules. To check out the full rules from DVLA click here