How to Tax a Car?

In the UK the law stipulates that all vehicles must be taxed or they must be declared as being off the road. Therefore, it is the responsibility of the car owner to ensure they are compliant with all the rules and regulations relating to car tax, car insurance, and MOT.

Paying car tax has been made easier than ever by the Driver and Vehicle Licensing Agency (DVLA) and the government in the last few years. Click here to get started paying your car tax.

If you cannot pay all your taxes in one go, you can pay by direct debit monthly.


When Is My Car Tax Due?

If you want to know when your car tax is due, check the government website at any time.  All you need is the car’s registration number, and you will need to insert these details in the government website and follow the prompts on the screen to find out when your car tax is due.

The DVLA will still send you a vehicle tax reminder (form V11) in the post, but you should always make your own inquiries, so you have plenty of time to renew your tax at the right time.

Not having the car taxed will invalidate your insurance, so you must be aware of all the details relating to your car tax, especially the renewal date.


Does My Car Have Road Tax?

As mentioned above, you can check if your tax has been paid and when it is renewed by going to the government website.

The HM Treasury has reported that it loses £94 million every year from its funds due to vehicle tax evasion.  Whilst 98% of car owners ensure that their car is properly taxed in a timely manner, there are some car owners who continue to break the law.

In recent years, the DVLA has been working alongside law enforcement agencies and the DVLA to clamp down on untaxed cars. New technology has facilitated automatic number plate recognition which means it is far easier for enforcement officers to identify cars that have no road tax paid on them.

Do You Pay Road Tax On Electric Cars?

The answer is no.  Before April 2020, owners of an electric car that cost over £40,000 had to pay tax annually, but this rule has now been abolished.

In the UK, anyone who owns a car must pay vehicle excise duty (also known as VED – car tax).  The amount of tax payable is based on the type of car and its CO2 emissions.  As electric cars are zero emission this means that no tax is payable on them.


How To Cancel Car Tax

If you want to cancel your car tax, the process is very simple and straightforward.

You can cancel your car tax in the following circumstances:

  • You have registered a Statutory Off Road Notification (SORN) with the DVLA
  • You have sold your car
  • You have transferred your car to another owner
  • The car has been scrapped
  • The car is exported to another country
  • An insurance company has written off the car
  • The car is registered as exempt from VED

The only way you can cancel the car tax and apply for a refund of any overpayment of tax is to notify the DVLA.  Once the DVLA has all the information it needs in relation to the cancellation, it will refund you directly.

You can notify the DVLA online or via telephone by calling the DVLA on 0300 790 6802.

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