Latest Motoring News
Avoid £1000 Fine By Knowing The Car Tax Disk Rule Changes
posted on Aug 27 2014 by Kiri Nowak
The paper tax disk is being scrapped after being around for 93 years. Car owners will no longer require a paper tax disk, it will be replaced with electronic records from the 1st of October 2014.
One of the key benefits to this new scheme is that for the first time people will have the option of paying by direct debit. Previously everyone has had to pay either six months or a year in advance depending on their preferences, with the yearly cost usually being slightly cheaper. However, this new option does have a slight drawback, if you choose to pay by direct debit there will be a 5% extra charge every year on top of the standard price.
Another benefit of this way of doing things is that it should help people who regularly forget to renew their tax disk on time. People can avoid huge fines by setting up a direct debit, knowing that they are making regular payments. You can read more about your tax disk obligation here on the Gov.uk website.
The scheme is also rumoured to be saving the tax per £10 million a year. It’s also going to have a positive impact on the environment because we are no longer wasting paper and energy used to make the tax disks.’ More than 1.7billion tax discs have been issued since 1921.’ (Independent)
Another change to the scheme is that vehicle tax will no longer be transferred so new owners will be responsible for buying a car tax disk. If you are selling your car you must let the DVLA know of any changes immediately or you risk being given a £1000 fine.
Although the paper tax disk will vanish, don’t think for one second it will be any easier to avoid payment. It will in fact be more difficult for people who try to avoid paying tax as the DVLA will now have digital records. These digital records can easily detect if someone is not paying their car tax. Police cameras will identify vehicles without tax using automatic number plate recognition cameras.
However, it seems that the general public aren’t particularly well informed about this big change. ‘Research shows 40 per cent of drivers are unsure about the DVLA's changes.’ (The Independent) It’s only about six weeks until the changes go ahead and a lot of people don’t even know they are happening.
Hannah Maundreell, editor in chief of money.co.uk predicts that there could be a few issues in the early stages of the scheme, she said ‘I suspect the new system may experience some teething problems so drivers really need to make sure they're on top of their game.’
You can easily find out your car’s tax status by going to the DVLA website and entering your car’s make and registration. Click here to find out more about the new tax disk and what you need to do. Don’t risk getting a hefty fine by not knowing the rules.