However, hundreds of people are still being caught out by the tax disc loophole, so we thought we would put together a list of eight things you NEED to know about the new rules:
- All drivers still need to pay their car tax as usual, but there is no need to display a round paper tax disc in your car.
- A new computerised road tax system is now in place, which keeps track of who has paid and uses automatic number plate recognition (ANPR) to track all car owners who haven’t paid.
- Anyone who hasn’t paid their road tax will face fines of up to £1,000. Police will be able to track down non-payers via the Police National Computer System.
- Instead of paperwork and the round paper tax disc, drivers need to pay their road tax on the DVLA website or by direct debit. If you do not have internet access, you can also pay at a post office.
- If you are buying a car, the tax will NOT be transferred with the car. You will need to get new tax before you can use the car.
- If you are selling your car, the tax will NOT carry over to the next owner. New tax must be purchased by the buyer. Sellers then get a refund for any tax paid while the car is not in their ownership.
- You no longer need to make a separate application for a refund of car tax. Instead an automatic refund will be issued for any full months remaining when the DVLA is notified of any changes.
- You can check if a car is taxed on the DVLA website. This can also be used for rental cars.