The Freight Transport Association (FTA) is reassuring motorists that the change in the vehicle tax system should not cause problems for drivers, but they should be aware of the new process.

To enable the abolition of the disc, DVLA decided to relook at the Vehicle Excise Duty (VED) process and, as a result, has changed the rules regarding the transfer of vehicle tax.

‘It is imperative that vehicle keepers and potential new vehicle owners are aware that from the 1st of October vehicle tax will no longer be transferable when a vehicle is sold or transferred. The new keeper must purchase tax for the vehicle if they wish to take it onto a public road and the old keeper will automatically receive a refund on any outstanding full months,’ explained Ian Gallagher, FTA’s lead on Driver Licensing and Vehicle Registration. 

DVLA will continue to send vehicle owners a renewal reminder when the tax is due to expire, and keepers will still process their vehicle in the same way, either electronically, online or at a Post Office.   This applies to all types of vehicles including those that are exempt from payment of vehicle tax. The changes will apply across Great Britain and Northern Ireland.

Vehicle tax enforcement will be carried out by DVLA using cameras which will highlight the number plates of untaxed vehicles. The Government says that delivering more services digitally will help it cut costs. Switching to digital tax discs will cost £8m to set up but will save £2m a year in administrative costs within three years. Motorists who fail to comply with the new system could face a £1,000 fine.

To find out more details on the abolition of the tax disc go to:  www.gov.uk/dvla/nomoretaxdisc

To check whether a vehicle is taxed online – www.gov.uk/check-vehicle-tax

If you wish to renew a tax disc or set up a direct debit (only available after 1 October 2014)  - www.gov.uk/tax-disc