26 February 2014

After 93 years the paper tax disc is to be abolished with effect from 1 October 2014.

In his Autumn Statement, the Chancellor announced that the paper tax disc will no longer be issued and required to be displayed on vehicle windscreens. Vehicle tax will still need to be paid, but with DVLA having a digital record of who has and has not paid, a paper tax disc is no longer necessary as proof that payment has been made.

If you have any remaining months left on your current paper tax disc after 1 October, you can either choose to display the disc until it expires or remove it from the vehicle.

Vehicle tax will no longer be transferable when the vehicle is sold to another keeper, it will end when the vehicle is sold — the new keeper will need to tax the vehicle immediately before it can be driven.

Vehicle owners will be able to spread their vehicle tax payments if they wish. For vehicle tax starting from 1 November 2014, they will be able to pay by direct debit either annually, biannually or monthly. There will be no additional handling fees for annual payments but there will be a surcharge of 5% of vehicle tax for biannual and monthly payments — half of the 10% surcharge that currently applies to six-monthly tax discs.

DVLA will continue to notify owners when their vehicle tax is due for renewal.

The tax status of any vehicle can be checked online.

From Gillian Fraser, editor and writer for Croner