MVDA

MVDA

Friday 5 September 2014

Changes to Vehicle Tax 1st October 2014 - Frequently Asked Questions

From 1st October 2014 the tax is no longer transferable, so you must tax it before you use it

1. WHAT IS HAPPENING?
The law is changing , to get rid of need to display a paper tax disc. Tax discs will no longer be available.
 2. WHY?
 The benefits of paper tax discs have become redundant over time as the DVLA and police rely on DVLA’s electronic vehicle register to check if a vehicle is taxed.
 3. WHEN IS THIS HAPPENING??
 1st October 2014.
 4. WHO WILL THIS APPLY TO?
 Everyone who needs to tax their vehicle.
 5. DOES THIS MEAN THAT MOTORISTS NO LONGER NEED TO BUY VEHICLE TAX?
 No. Motorists will still need to pay for vehicle tax, but they will no longer get a paper tax disc for display on vehicles.
 6. HOW DOES THIS WORK FOR VEHICLES THAT ARE EXEMPT FROM PAYMENT OF VEHICLE TAX (E.G. DISABLED TAX CLASS)?
 The requirement to apply for vehicle tax will not change for any individual including those in the Disabled Tax Class. The only change will be that the paper tax disc will no longer be issued and required to be displayed on a vehicle windscreen.
 7. WILL MOTORISTS STILL GET A REMINDER WHEN THE VEHICLE TAX RUNS OUT?
 Yes. Renewal Reminders (V11s and V85/1s) will still be issued.
 8. HOW WILL I KNOW IF A VEHICLE IS TAXED?
 Any person may check the tax status of any vehicle by using DVLA’s Vehicle Enquiry System at www.gov.uk/check-vehicle-tax
 9. WHAT IF I NEED A TAX DISC TO GET A PARKING PERMIT/CAR PARKING SPACE?
 All Local Authorities will be made aware of the change to law where tax discs will no longer be available.
 10. IF THERE IS NO TAX DISC, THIS COULD ALSO MEAN THAT THERE IS NO INSURANCE OR MOT FOR A VEHICLE. HOW WILL THIS BE CHECKED?
 The technology is already available to check details between the DVLA, Insurance Industry and the Driver and Vehicle Standards Agency (DVSA). Technical advancements in accessing vehicle information means Police can access details at the roadside.
 11. WILL THIS LEAD TO MORE PEOPLE NOT PAYING THEIR VEHICLE TAX?
 There is no evidence to suggest that getting rid of the paper tax disc will make this increase.  DVLA already takes enforcement action directly from the vehicle register. Tools like Automatic Number Plate Recognition (ANPR) cameras and wheel-clamping are used to enforce against those who fail to pay their vehicle tax.  These measures have helped to improve compliance and vehicle tax evasion is at a historic low. The latest estimate of vehicle excise duty evasion is just 0.6%.
 12. HOW DO I GET A REFUND?
 The registered keeper on record will automatically be issued with a refund when they notify DVLA that they no longer need to tax the vehicle any longer such as it being sold/transferred or declared off the road (SORN).
 13. WILL IT AFFECT THE POST OFFICE LTD?
 No. Customers who want to visit their Post Office® branch will still be able to do so to pay for vehicle tax, but they will not be issued with a tax disc.
 14. IF I BUY A CAR  WITHOUT A PAPER TAX DISC, HOW CAN I FIND OUT HOW MUCH IT COSTS TO TAX?
 The cost of vehicle tax can be found at www.gov.uk/check-vehicle-tax
 15. HOW CAN I CHECK IF A VEHICLE IS EXEMPT FROM TAX (SUCH AS DISABLED)?
 From 1 October 2014, you will be able to check the vehicle tax class and status of any vehicle online at www.gov.uk/check-vehicle-tax. You just need to provide the vehicle registration number and the make of the vehicle. If the customer is in attendance request sight of either Vehicle Registration Certificate (V5C) or the confirmation of eligibility issued by DWP.

BUYING/SELLING A VEHICLE
 1. IF I BUY A SECOND HAND CAR AFTER THE 1ST OCTOBER 2014, HOW AM I MEANT TO DRIVE THIS AWAY AS THE TAX WILL CEASE AT THE POINT OF SALE?
 You can tax the vehicle using the New Keeper Supplement (V5C/2) part of the Vehicle Registration Certificate (V5C) online or by using our automated phone service – 24 hours a day, 7 days a week. Alternatively, you may wish to visit a Post Office® branch that deals with vehicle tax.
 NB. DVLA is unable to check the vehicle insurance details for new keepers in Northern Ireland (NI) online or by phone. NI new keepers should tax at a Post Office® branch that deals with vehicle tax.
 2. WILL THERE BE A GRACE PERIOD BETWEEN THE POINT OF SALE TO ALLOW ME TO DRIVE TO A POST OFFICE TO TAX THE CAR OR TO DRIVE THE VEHICLE HOME?
 No. There will be no period of grace. In order to use a vehicle, the buyer must always obtain new vehicle tax immediately upon the point of sale.
 DVLA always advise that vehicles should not be purchased without sight of the Vehicle Registration Certificate (V5C). Any person buying a vehicle should insist on having the New Keeper Supplement (V5C/2) which allows the buyer to obtain a new vehicle tax immediately.
 3. CAN I USE THE ONLINE OR PHONE SERVICE TO TAX MY CAR AT THE POINT OF SALE TO ALLOW ME TO LEGALLY DRIVE THE VEHICLE?
 Yes, this service is available 24 hours a day, seven days a week online and by phone. Confirmation of tax is provided at the point of taxing.
 4. WHY HAS THE DECISION BEEN MADE TO NOT ALLOW THE TRANSFER OF REMAINING PERIODS OF CAR TAX TO BE PASSED TO NEW OWNERS?
 This is a customer protection measure. As there will be no paper tax disc for the new owner to check, the vehicle tax will end when a vehicle is sold. This will remove any doubt for the person buying the vehicle – new owners always need to obtain new vehicle tax.
 5. WILL THIS BE THE END OF SELLING A CAR WITH TAX?
 Yes, from 1 October 2014 the vehicle tax will be non-transferrable.
 6. IF I DRIVE A FRIEND’S, RELATIVE’S OR RENTAL CAR, HOW CAN I CHECK IF IT’S TAXED?
 You can check the licensing status of a vehicle by going to www.gov.uk/check-vehicle-tax
 7. HOW WILL I CLAIM A REFUND OF VEHICLE TAX FROM THE 1 OCTOBER 2014?
 You will get an automatic refund when DVLA receive notification from you, as the registered keeper, advising that the vehicle:
  • been sold or transferred
  • been scrapped at an Automated Treatment Facility
  • been exported
  • been removed from the road and the person on the vehicle register has made a Statutory Off Road Notification (SORN)
  • changed to a nil rate of duty tax class
 It is important that you tell DVLA of any changes for example, change of name or address, as any refund will be paid to the name and address we have on our records (shown on the Vehicle Registration Certificate V5C). To update DVLA with a change of name or address details, you will need to fill in Section 6 of the V5C, sign the declaration and return the whole V5C to DVLA, Swansea, SA99 1BA.
 8. WILL A MOTOR TRADER STILL BE ABLE TO TAX THE VEHICLE FOR ME?
 Yes. A motor trader will still be able to tax a vehicle on behalf of a customer using a V5C/2 before the customer drives it away. From 1 October 2014, motor traders will be able to do this online or over the phone.
NB. Motor Traders in Northern Ireland (NI) will need to continue to tax at the Post Office as we are unable to check the vehicle insurance details for new keepers in Northern Ireland (NI) online or by phone.

DIRECT DEBIT
 1. WHAT VEHICLES ARE GOING TO BE INCLUDED IN THE DIRECT DEBIT SCHEME?
 The Direct Debit scheme is going to be widely available for all motorists (cars, vans, motorbikes, buses, HGV) that currently re-licence their vehicles via the online licensing service or at the Post Office.   But the initial phase of the Direct Debit scheme will NOT be applicable to:
  • Fleet vehicles licensed in bulk, however vehicle fleet managers will be able to use the online or Post Office options by enrolling their vehicles individually
  • The First Registration and Licensing process. The first licence that is collected as part of the purchase of a new vehicle at Motor Dealers is out of scope as many dealers offer an on-the road total price for new vehicles and therefore it would neither be appropriate nor feasible to include these changes
  • HGV vehicles that are subject to road levy charging.
 3. HOW DO I SET UP A DIRECT DEBIT FOR MY VEHICLE TAX?
 If your vehicle is eligible, when you receive your Vehicle Tax reminder you will be offered the opportunity to pay via Direct Debit. You can set up a Direct Debit when paying online (www.gov.uk/vehicletax) or at a Post Office® branch that deals with vehicle tax. We will then forward your instructions electronically to your bank, authorising them to allow payments to be collected from your account
 You will be able to buy 6 or 12 months of vehicle tax in one go or spread the payments over 12 months. Whichever option you choose, the payments will continue automatically until you notify us to stop taking them providing you have a valid MOT in place at the point of renewal. For NI customers a check of valid insurance is also made.
 4. WHEN WILL DVLA TAKE THE MONTHLY PAYMENT FROM MY BANK ACCOUNT?
 Payments are taken on the first working day of every month. Your first payment date may vary but a payment will not be taken before your tax is due to start.
 5. WHAT INFORMATION DO I NEED TO SET UP A DIRECT DEBIT?
 You will need all the usual bank details, plus the documentation required to tax e.g V11 reminder, Vehicle Registration Certificate (V5C).  The person setting up the Direct Debit does not need to be the registered keeper.
 6. CAN I CONTINUE TO PAY FOR MY TAX AS I NORMALLY DO?
 Yes, all existing payment methods will remain in place.
 7. WHAT HAPPENS IF I DECLARE SORN OR SELL MY VEHICLE?
 If you notify DVLA that you have sold your vehicle or declared it off-road (SORN), then DVLA will automatically stop taking Direct Debit payments from your bank and will cancel your Direct Debit. If you have been paying your tax in annual or six-monthly payments, you will be eligible for a refund for any full calendar months that remain. This will be paid automatically by DVLA to the keeper registered on our records.
 8. WHAT HAPPENS IF I BUY A CAR THAT IS TAXED BY DIRECT DEBIT?
 You are responsible for taxing the car from the date you become keeper.
 If the previous keeper taxed the car by direct debit payments, their Direct Debit payments will be automatically cancelled when we receive notification from them that they are no longer the keeper. You will be able to set up your own Direct Debit when you tax the vehicle using the V5C/2 New Keeper supplement.
If the previous owner taxed the car by annual or six-monthly Direct Debit payments, then these will be automatically cancelled but you will have to check the expiry date of the tax as the previous owner may apply for a refund of the tax.
 9. WHAT HAPPENS IF I FAIL TO KEEP UP THE DIRECT DEBIT PAYMENTS?
 If you do not keep up the payments the vehicle will become untaxed & you may be liable for enforcement action.
 10. CAN A NEW KEEPER SET UP A DIRECT DEBIT?
 Yes. You can set up a direct debit for the vehicle using the New Keeper Supplement (V5C/2) part of the Vehicle Registration Certificate (V5C) online or by using our automated phone service – 24 hours a day, 7 days a week. Alternatively, you may wish to set one up at a Post Office® branch that deals with vehicle tax.

MOTOR TRADERS
 1. WHAT WILL CHANGE FOR MOTOR TRADERS AFTER THE TAX DISC IS ABOLISHED?
 Motor traders will no longer be able to purchase vehicles with a tax disc in force. From 1st October 2014, a tax disc is no longer transferable when a vehicle is sold. Motor traders may wish to use trade plates, provided that the vehicle is used within the conditions for use of trade plates. Alternatively, if the vehicle is to be registered in the name of the motor trade, then new vehicle tax will need to be obtained.
 2. WILL THE USE OF TRADE PLATES CHANGE FOR MOTOR TRADERS AND VEHICLE TESTERS?
 From 1st October 2014, it will no longer be a requirement for a trade licence holder to display a trade licence. Motor traders and vehicle testers will still need to apply and pay for a new trade licence at the time of renewal, but there will no longer be a paper trade licence for display within a trade plate. The display and conditions of use of trade plates for motor traders and vehicle testers will not change in October 2014.
 3. WILL THERE BE ANY CHANGE FOR MOTOR TRADERS TO NOTIFY SALE AND TRANSFER OF VEHICLES TO DVLA?
 There will be no change. The person or business registered as the keeper must notify DVLA when they sell or transfer a vehicle.
 4. HOW WILL REFUNDS BE ISSUED TO THE KEEPERS WHO TRANSFER VEHICLES TO THE MOTOR TRADE?
 Refunds will continue to be made to registered keepers, when DVLA receives notification of a change on the Vehicle Registration Certificate (V5C) this includes notification that the vehicle has been destroyed (COD/NOD). Refunds will also continue to be made when a keeper makes a Statutory Off Road Notification (SORN).
 5. HOW WILL REFUNDS BE ISSUED TO THE MOTOR TRADERS WHOSE VEHICLES ARE REGISTERED TO THE MOTOR BUSINESS?
 Refunds will continue to be made to the motor trade business registered with DVLA, when a notification of change is received on the Vehicle Registration Certificate (V5C). Refunds will also continue to be made when a motor business that is registered as a keeper makes a Statutory Off Road Notification (SORN).
 6. WHAT IF A TAX DISC IS LOST BEFORE OCTOBER? WILL A DUPLICATE DISC STILL BE REQUIRED TO BE DISPLAYED?
 A duplicate tax disc will need to be obtained and displayed up until 30 September 2014.
 7. ARE RENEWAL REMINDERS TO TAX (V11S AND V85/1S) STILL BEING SENT BY DVLA?
 DVLA will continue to issue Tax Reminders. Customers still need to apply for vehicle tax at the appropriate time.
 8. IS THERE A PERIOD OF GRACE TO TAX A VEHICLE THAT HAS JUST BEEN PURCHASED?
 DVLA always advise customers that before they purchase a vehicle they should ask to see the Vehicle Registration Certificate (V5C). Any person buying a vehicle should insist on the New Keeper Supplement (V5C/2) which allows the buyer to obtain new vehicle tax. This is currently the case and will continue after October 2014.
There is no period of grace when the tax disc is abolished. The buyer will always need to obtain new vehicle tax immediately upon point of purchase, using the V5C/2. From 1st October, customers can also tax online or by phone 24hours a day. Alternatively, the buyer can visit a Post Office to get vehicle tax.
 9. WHAT MUST THE SELLER DO?
 The seller must notify DVLA that the sale/transfer of the vehicle has taken place. A refund payment for any full months of vehicle tax outstanding will be sent to the seller upon notification of the sale from the seller.
 10. IS IT POSSIBLE THAT THE REFUND IS SENT TO THE WRONG PERSON?
 The refund will always be paid to the person on the DVLA vehicle register. In the case where a vehicle is sold, the refund will be paid to the seller once DVLA receives notification that a vehicle has been sold.
 11. IF A MOTOR TRADER PURCHASES A CAR AFTER 1ST OCTOBER 2014 - CAN THEY TAX IT, WITHOUT BECOMING THE REGISTERED KEEPER?
 DVLA expect vehicles disposed into the motor trade to be untaxed and used on trade plates whilst in the temporary possession of the trader. If the trader wishes to tax vehicles for personal use, then vehicles should be registered and taxed accordingly. Vehicles in the trade should only be taxed at the point they are sold to a new keeper and the new keeper details notified to DVLA on the V5C, as per current process.
 12. IF A CAR IS "IN TRADE" BEFORE 1ST OCTOBER 2014 AND THE CURRENT TAX DISC EXPIRES AFTER 1ST OCTOBER, WHAT WILL HAPPEN?
 Any taxed vehicle currently in the trade where the tax disc expires after 1st October, will result in the tax being terminated at the point the vehicle is sold to a new keeper. No refund will be paid if the vehicle is registered as disposed to trade. Only if the trader is registered as keeper will a refund be paid.
 13. CAN ATFS CONTINUE TO REQUEST REFUNDS ON BEHALF OF KEEPER?
 Yes, this can be done by following the current process of notifying DVLA of the COD/NOD. This will automatically issue a refund to the registered keeper on DVLA records.


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