New Car Tax Rules

What are the changes?
The new car tax (vehicle licensing) rules mean that from 1 January 2004 the registered keeper of a vehicle (the person named on DVLA's record) remains responsible for taxing a vehicle (or making a SORN declaration) until that liability is formally transferred to a new keeper. To avoid liability for taxing it, the keeper needs to inform DVLA when the vehicle is sold, transferred, scrapped or exported. Once DVLA has been notified about a sale/transfer we will issue an acknowledgement letter, which should be kept as proof that the vehicle record has been changed.

What happens if you do not re-license your vehicle?
The new rules mean that keepers who fail to re-license their vehicle (or declare SORN) will incur an automatic penalty of £80 (reduced to £40 if paid within 28 days). Determined offenders will be faced with prosecution and could be fined a minimum £1000.

DVLA will carry out a computer check each month to identify those vehicles without a valid tax disc. Although the new rules mean that it is no longer necessary for the vehicle to be seen on a public road before a penalty is issued current on-road enforcement will still continue.

Why have the changes been introduced?
The new rules are aimed at cracking down on individuals who do not tax their vehicles. As you need an MOT (for vehicles over 3 years old) and an insurance certificate to buy a tax disc, the measures will reduce the number of unsafe and uninsured vehicles on the road. The new rules also reinforce the requirement for keepers to notify DVLA of changes, thereby improving the accuracy of the record, making it easier for the police to trace the owners of abandoned cars, and those used in criminal activities. This will benefit not just law-abiding motorists but the community as a whole.

To avoid a penalty you must make sure you do the following:

Ensure your tax disc is up to date.
You can keep your tax disc up to date by filling in the relevant section of the renewal reminder form V11 and taking it to a licence-issuing Post Office branch. V85/1s (for Heavy Goods Vehicles) must be submitted to a DVLA Local Office*) or

Apply for a new tax disc using form V10 at a licence-issuing Post Office branch or form V85 (for HGVs) at a DVLA Local Office*. You will need to show your Vehicle Registration Document/Certificate (commonly known as the logbook).

* To find your nearest DVLA Local Office call 0870 243 0444 - you will be asked to provide your postcode.

http://www.dvla.gov.uk

Ensure you inform DVLA if you sell, transfer, scrap or export the vehicle, otherwise you will remain liable for taxing it even though you have disposed of it. Once DVLA is notified about a sale/transfer we will issue an acknowledgement letter which you should keep safe.
Keep your record up to date by filling in the relevant sections of the Vehicle Registration Document/Certificate and sending it to DVLA, SA99 1BA.

Make a Statutory Off Road Notification (SORN) if you do not intend to use or keep the vehicle on a public road. A SORN declaration is valid for 12 months (provided the vehicle is retained off-road) - failure to renew it (or re-license) will also incur a penalty.
You can declare SORN by filling in the relevant section of your renewal reminder form V11 and taking it to a licence-issuing Post Office branch (V85/1s must be submitted to a DVLA Local Office*).

Calling 0870 240 0010, if you are the registered keeper
Filling in a SORN declaration form V890 and sending it to DVLA. These forms are available from all DVLA Local Offices*, licence-issuing Post Office branches, www.dvla.gov.uk or by calling 0870 240 0010; or

Filling in the declaration on the application for refund forms V14 and V33.


* To find your nearest DVLA Local Office click here or call 0870 243 0444 - you will be asked to provide your postcode.

Further Information in leaflet INF183 Click Here

On a related issue, I'd be very keen to hear from someone in insurance, because I've heard from two people that your insurance is invalid while your tax disc is expired.

Additionally, someone I know had an accident with a just expired MOT, normally responsible, but has been told by the insurers that they would not pay. I personally don't see how they can do this over an MOT. If so, avoid financial ruin and get your tax discs and MOT's on time.

Egad!  You'll never believe what a close call I've just had.  As we were driving back down south from Glasgow after Christmas I asked my husband to check and see how much longer I had on my tax disk.  Turns out it expired in October!!!  We have had that car up and down the country, not to mention back and forth to work every day.  I don't know how I managed to let it go so long.  Suffice it to say I ended up at the DVLA getting a back dated tax disk on about the 28th or 29th of December.  What a close call!

your vehicle must have a valid tax disc and MoT certificate otherwise they will seize on the excuse not to pay out. It probably says this somewhere in the small print in your policy