Vehicle Tax

Tax discs are set to be abolished in less than six weeks time. The traditional paper disc will vanish from October 1.

The new online system will mean that motorists have to register online and pay via direct debit or at the post office. 

Motorists could face a £1,000 fine if they are unaware of the changes or face potential penalty charges against a car they no longer own, so here are the key points you need to know about the changes:

• Vehicle tax will no longer be transferred for used car buyers, meaning you will have to immediately register the car online.
• Those selling used cars will get a refund on any full calendar months left on the vehicle tax.
• The DVLA said it is important to notify it straight away of a change to ownership, otherwise the registered keeper could still be liable for the vehicle – failure to do so could result in a £1,000 fine.
• Drivers will have the option to pay by direct debit.
• Tax can be paid annually with no extra cost, while those choosing to spread the cost by paying twice a year or monthly will incur a five per cent additional charge.