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Major Changes Set For Car Tax System

Thursday August 21 2014




BUYERS of used cars will need to immediately tax their car as part of new changes coming in from October - or face heavy fines.

The paper tax disc, which was first introduced in 1921, will be replaced by an electronic system from October 1 in a bid to cut administrative costs.

Anyone who buys a used car will no longer benefit if there are months left on the tax disc, as the vehicle's tax will no longer be transferred with the car.

This means buyers will have to renew their tax disc straight away, or risk being caught out on the road in an untaxed car.

Drivers will be able to pay their vehicle tax online on an annual, six-monthly or monthly basis.

Roads minister Robert Goodwill said: "Our digital services are proving extremely popular and are designed to be used any time of the day or night to fit in with people's lifestyles."

What do you think to these changes? Have your say below.

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Reply Posted by iwonder on Thursday August 21 2014 at 16:40
Wonder how reliable this will be with computers crashing now and again...




Reply Posted by trader on Thursday August 21 2014 at 17:21
Let's hope it goes OK. To be fair, when VOSA went on line with MOT,it twerent bad at all. So fingers crossed,but we do need more information. Not being informed is wrong! Its business,not a joke!

Reply Posted by taxed again on Friday August 22 2014 at 08:38
So if tax no longer transfers with the car where does the cash go for the remaining month/s left on the tax? Doubt it gets sent to whoever payed for it in first place. That will give the government hundreds of thousands if not a couple of million a year in what will basically be stolen money. Nothing wrong with the way it works now just another way to grab extra cash off the road users of britain

Reply Posted by John on Friday August 22 2014 at 12:06
Full remaining months are repaid to the person who bought it - same as now if you return one.

Reply Posted by trader on Friday August 22 2014 at 13:06
Not sure how that works @john? So if I buy a car that has 8months r.tax on it,I get that refunded? Then the seller may buy a car with 1month r.tax left on it,so he will get just that month refunded? Its confusing.

Reply Posted by mystery on Monday August 25 2014 at 17:42
Trader, if you are selling a car currently you don't have to sell it with tax and you can return the disc to DVLA and any complete months left until expiry will be refunded to you. From Oct 1st you won't have a choice you will have to claim back any unused road tax and sell your vehicle without tax and the purchaser will have to buy a min of 6 months before they drive it away.

Reply Posted by trader on Monday August 25 2014 at 17:58
@mystery thanks for that. To claim a refund you have to register the car in the new owners/business name. This means your adding an extra owner as you have to wait for V5 reg doc to come back. This makes a car less desirable with that extra owner? So not good for motor trade? Am I right?

Reply Posted by for sale on Monday August 25 2014 at 18:05
I am also a car trader, and I think this could be a way of getting the older cars of the road, has it could be more hassle than its worth, I.E a part ex for around £500 would it be worthwhile taxing and then it may take months to sell so you will lose money on tax..just my opinion I may be wrong

Reply Posted by trader on Monday August 25 2014 at 18:39
No @for sale. The trader wouldn't tax the car, it would be the new owner that does that. I can't see it being difficult, its just easier to put a part ex up for sale cheap, and sell it on. Its going to be an extra job for the new owner that's all. I should imagine the new owner would have to submit their insurance details when taxing it,which to be fair is no bad thing.

Reply Posted by Me, here, now on Friday August 22 2014 at 09:55
If the Government are cutting down on admin fees and the physical cost of producing the tax discs does this mean the motorists will see a reduction in the road tax fees ?? I very, very much doubt it

Reply Posted by Debs on Friday August 22 2014 at 18:25
There is no such thing as road tax so it can't be reduced.

Reply Posted by killkenny on Friday August 22 2014 at 13:40
Won't effect 80% of the cars cos there on the mobility or getting it for nowt anyway.

Reply Posted by oioi on Friday August 22 2014 at 13:53
Wots your problem @killkenny people on an motability are for a reason...

My daughter gets a car due to having a illness that prevents her from walking..

Sounds as if your jealous..

Reply Posted by patty on Friday August 22 2014 at 13:56
what about the oldies who haven't got a clue how to use computers and will have to apply on-line.

Reply Posted by kellie on Friday August 22 2014 at 15:07
ive looked on website and apparently the remaining tax on the vehicle will be refunded to the driver that bought it. for example : if you buy a car that has 3months tax on it. the old owner will be refunded this tax back and you will have to pay for a full 6/12months yourself.

Reply Posted by Davieboy on Saturday August 23 2014 at 18:52
Why not abolish Road Tax altogether, and put the tax on petrol. That way the motorist who use their cars most, pay more tax via the fuel they use.
That way the Sunday motorist who rarely uses their cars pay least. Simples

Reply Posted by Phil on Thursday August 28 2014 at 14:08
If you ask me from looking at this it's just going to make things complicated, and what about people who don't have internet how would it work for those?

Reply Posted by k on Sunday August 31 2014 at 18:53
As a motor trader, I am holding a number of taxed vehicles "in trade" (Yellow V5 slip sent off) What happens to the many remaining months of tax across these cars after 1st October? For some time now the trade have been unable to reclaim road tax but I pass it on to the new owner as a bonus. The price I gave for the cars factors in the tax element-this would now appear to be lost. Will it go back to the last named keeper upon being sold to a new customer?
There must be hundreds of thousands of vehicles in this "limbo" situation.

Reply Posted by k on Saturday September 6 2014 at 13:49
Quick update, I have now spoken to DVLA, & they have clarified it..... a bit. Basically they say if you sell a vehicle as a trader the remaining tax is refunded to the last named keeper.even if the vehicle is "in-trade" (Yellow Slip)
So the only way to recover any tax is by registering the business as an owner of the vehicle & filling out a V14 Form.Many former keepers will have a nice little winfall from the DVLA for cars they may have traded-in months previously. And the best bit with regard to saving paper is that refunds will be sent out by cheque!!!
Interesting times ahead.

Reply Posted by Dr Debate on Sunday August 31 2014 at 20:43
@K for over 10 years the Maindealers and Car traders having been ripping the motorist off bt cashing in on there tax disc. why should the people tat pay for the original tax just be expected to hand it over to Maindealers and car traders.

You've had it god too long.

And before you moan I worked for a main dealer for many years and some months we recovered oner £2500 to £3000 from other people's tax discs

Reply Posted by debt on Sunday August 31 2014 at 21:13
that's life.

Reply Posted by k on Monday September 1 2014 at 21:32
I posted this to seek other peoples views on the new road tax changes NOT enter into a slanging match about past practices predominately by some main agents. All my P/X customers are given the option to keep their tax & cash it in themselves or receive a higher allowance price. The next owner doesn't pay any extra for the remaining tax I include that in the screen price.
Thankfully some people on here HAVE got sensible things to say.

Reply Posted by trader on Sunday August 31 2014 at 21:04
We are not all the same Dr.Debate. my business is small ,and open your eyes, business,s of all kinds are on the floor. I'm proud that I employ a few good lads,but wages are scraped up sometimes and trust me,we are one of the busiest small garages in the area. Main dealers are different, but credit where its due, we employ people in very hard times. You can't speak for all traders mate,you don't know how it is for the small garages. The road tax thing to me is just an inconvenience, not a great loss of income.

Reply Posted by Dr Debate on Sunday August 31 2014 at 21:12
So why do you think you should hand over somebody who has already paid for the road fund licence to the new customer or the garage.

Reply Posted by trader on Sunday August 31 2014 at 21:39
I don't care about the changes,like I said previously its more of an inconvenience than a loss of income. But as an employer there are many costs in employing staff, that as an employee you will probably know nothing off. As the person that takes all the risks and puts in most hours,and as the last person that gets paid from the till, I was just a bit offended when you tarred the trade in total as being rip off merchants. I can assure you,not all are.

Reply Posted by k on Monday September 1 2014 at 21:36
Absolutely right.

Reply Posted by k on Saturday September 6 2014 at 13:49
Quick update, I have now spoken to DVLA, & they have clarified it..... a bit. Basically they say if you sell a vehicle as a trader the remaining tax is refunded to the last named keeper.even if the vehicle is "in-trade" (Yellow Slip)
So the only way to recover any tax is by registering the business as an owner of the vehicle & filling out a V14 Form.Many former keepers will have a nice little winfall from the DVLA for cars they may have traded-in months previously. And the best bit with regard to saving paper is that refunds will be sent out by cheque!!!
Interesting times ahead.