From 1st October 2014 you are no longer required by law to display a tax disc on your vehicle as a new electronic system is now in place. As a matter of fact, you will no longer receive a tax disc at all! So the question remains, how do I tax my car?
There are a few ways you can do this, either by credit or debit card payment taken over the telephone, online by visiting the official site www.gov.uk/vehicletax, or by visiting a Post Office branch that deals with vehicle tax.
In a time when advances in technology are the norm, we ask ourselves what is the big deal about the system switching to electronic?
The problem arises when we are made aware that it may have a large impact on how used car sales will operate. Gone are the days of buying a car with “taxed until” that saves buyers a small fortune when purchasing a second hand car. It will now be impossible to transfer remaining car tax to new owners.
The seller of a vehicle will have to apply for a refund for the remaining tax from the Driver and Vehicle Licensing Agency and the new buyer will pay for tax in full, meaning potential used car buyers won’t save on remaining road tax which can range from £20 – £490 per year depending on the vehicle.
It is also an added nuisance that refunds are only given for complete months, meaning if you sell your car on the 1st of any month, you lose out on that month’s tax.