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Abolition of the tax disc from 1st October 2014 and VED becomes non-transferrable

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 vehicle windscreen.

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 ownership.

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:
•annually
•6 monthly
•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.


What is the Ratio of Different Types of Vehicles on UK Roads?

OK so we have previously posted in our blog that as of 2013 cars made up around 83% of the 35 Million vehicles registered and licensed for use on UK roads according to DVLA statistics.

But what is the ratio between different types of vehicles?

Cars actually made up 83.2% of vehicles on UK roads in 2013.

HGV's just 1.3% although it might not feel like it at times!

Bus and coaches 0.5%

Vans 9.6% (otherwise known a tailgaters)

Motorcycles 3.5%

Since 1994 cars have increased by 37%, vans (and light goods vehicles) have increased by 57% and motorcycles by 69%

There was a higher rate of increase in motorcycles up to 2010 but the % motorcycles to overall vehicles has declined slightly since 2010, the same applies to HGVs and buses with only cars and vans increasing year on year since 1994.

Since approximately the year 2000 vans as a % of overall vehicles have increased at a faster rate than other vehicle types.

Chart of UK Vehicles to UK Population 1992 to 2012

The following is a chart of the number of vehicles registered for use on UK roads to the number of UK population between 1992 and 2012.




The number of vehicles registered on UK roads has increased by 9.6 million between 1992 and 2012 or a rise of 38.5%.

The number of people living in the UK has increased by 6 million between 1992 and 2012 or a rise of 10.7%.

20 years ago vehicles to population percentage was 44.5%

in 2012 the ratio of vehicles to population had increased to 55.7% and increase of 11% on 1992.

The rise in two car families contributing to the increase in cars registered on UK roads in the last 20 years.