Car tax disc to be abolished

The tax disc is being abolished in favour of an electronic register system.

After 93 years, the car tax disc is going to be abolished. From October 2014 onwards, vehicle users will no longer need to display the disc in their windscreen.

The UK government is scrapping the documentation in favour of an electronic vehicle register system that will be monitored by the Driver and Vehicle Licensing Agency (DVLA).

Chancellor George Osborne announced during the Autumn Statement that scrapping the tax disc will save £7 million in administration costs.

At present, drivers can pay for their tax disc in six month or yearly installments but, using the new register, they will be able to pay for it on a monthly basis via direct debit. However, this will add five per cent to their annual bill compared to if they pay for it all at once. How much people have to pay for their tax disc is dependent on the level of emissions that their car produces.

The effectiveness of the paper document has come into question. A total of 600,000 people faced action from the DVLA last year for not having paid their road tax, however the majority of these people were uncovered using computer analysis.

Failure to display an up to date tax disc can result in a penalty of £200. However, there is a grace period for those who use the postal licensing service of 14 days, this is to allow time for the new tax disc to arrive.

Under the new system, people will be expected to register online although those who do not have access to a computer will be able to do so via the Post Office. Surveillance cameras will be used to identify vehicles that have not been taxed.

The tax disc and Vehicle Excise Duty were both introduced during 1920 under the Roads Act. Originally, road tax was introduced to generate money to pay for the building and maintenance of roads although it has since been added to the Treasury's central pot. Instead, roads are paid for out of general taxation.

 

  • On: 17 December 2013
  • By: CarShop

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