The Tax Disc Becomes Obsolete
If you weren’t already aware of the abolition of the road
tax disc with effect from 1 October 2014 you need to be aware of this change
which is one of the biggest changes in DVLA history.
History of the Vehicle Road Tax Disc
Vehicle tax was introduced in the 1888 budget and the
current system of Vehicle Excise Duty became law in 1920 the funds raised by
vehicle excise duty were ring fenced and used for road construction being paid
directly into a special road fund between 1920 and 1937 after which it has been
treated as general taxation not specifically earmarked for road development.
The road tax disc otherwise known as the vehicle tax disc
has been around for 93 years since it was introduced in 1921. The first road
tax discs were of a plain design of black ink on grey paper which vehicle owners
had to cut out themselves. Colour was introduced to the road tax disc in 1923
and in 1938 perforations were added around the outside of the printed circle to
make it easier for the circular tax disc to be extracted with display on your
In 1942 perforations around the outer circle ceased only
four years after their introduction for approximately a 10 year period after
the factory containing the perforating equipment was reportedly bombed by the
Germans during World War II.
The vehicle tax disc displays the vehicle excise duty paid
and the month that the duty paid expires.
Before tax disc is issued valid insurance and MOT must be
held for the vehicle concerned.
It is currently a legal requirement to clearly display the
vehicle tax disc however from 1 October 2014 there is no requirement to display
paper tax disc as the VED records will become fully computerised and managed
via the vehicle registration procedures.
In fact the DVLA are advising vehicle owners to remove the tax disc from the windscreen and destroy it from 1 October 2014.
As you will no longer have a visual reminder clearly on your
car it might be a wise move to opt for the direct debit option for payment to
DVLA in order to avoid unwittingly failing to renew your VED on time. DVLA will
still send you a renewal reminder but the direct debit payment option could
make things a lot easier for many road users.
Road Tax (VED No Longer Transferrable from 1 October 2014
Another important change to be aware of from 1 October 2014
is that VED or road tax paid is non-transferable when a vehicle changes
When the DVLA receive the V5C from the seller any whole
remaining months of VED paid will be refunded to the seller.
The purchaser will be required to purchase their own road
tax (VED) or declare a SORN with effect from the date of purchase before they can use the vehicle, so plan ahead of your vehicle purchase to avoid problems.
End of an error as part of the government’s changes in order
to reduce administration costs.
The times of a note in your windscreen saying “tax in the
post” are over.
How To Pay Your Road Tax
From 1 October 2014 (5 October if setting up at a Post Office®), Direct Debit will be offered as an additional way to pay for vehicle tax. This will be available for customers who need to tax their vehicle from 1 November 2014:
•monthly (12 months tax paid for on a monthly basis)
Provided an MOT remains valid, the payments will continue automatically until you tell DVLA to stop taking them or you cancel the Direct Debit with your bank. Valid insurance should also be in place for vehicles registered in Northern Ireland.
The Direct Debit will be cancelled and payments automatically stopped when you tell DVLA that you no longer have the vehicle, or the vehicle has been taken off the road and a Statutory Off Road Notification (SORN) has been made.