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Drivers don’t panic over death of the tax disc – is message from FTA

It’s all change for drivers this week as the tax disc will be no more; drivers will still need to tax their vehicles but will no longer receive a paper tax disc. From 1 October 2014 the law has been amended and the Driver and Vehicle Licensing Agency (DVLA) will no longer issue the tax disc, saving the taxpayer approximately £10 million per annum.

Today 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.

Ian Gallagher, FTA’s lead on Driver Licensing and Vehicle Registration said:
“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."

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.

Mr Gallagher added:
“This is a fundamental shift in the way that the DVLA carries out its business, the removal of a paper disc which was introduced in 1921 is just a first step towards more and more services moving online. FTA believes that the challenge for the Agency moving forwards is to ensure that the systems its designs consider all user groups and particularly bulk business sector requirements.”

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.

FTA has issued a Briefing Note – ‘Abolition of the tax disc – 1 October 2014’ – which is available on request to the press office.

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 www.gov.uk/tax-disc

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