Tax Payers will save $10 Million with new Car Tax Rules
You may or may not be aware that the rules around vehicle tax changed at the beginning of October 2014. If you didn’t know this and you own a vehicle in the UK, then you really need to know because there is a whole new way to comply with UK vehicle tax laws and if you’re not complying you could find yourself burdened with a whopping great fine. We have published this fantastically informative infographic to help car owners understand the new tax system quickly and easily so they know exactly what to do and what not to do.
The most obvious change in the system is the way vehicle owners display that their tax has been paid. We all know how important it is to display our colored tax disc in the windscreen but this is the case no longer. As of 1st October 2014, no more tax discs are being issued to car tax payers. What’s more, car owners with valid tax discs are no longer required to display the disc in their windscreen.
The new way for checking if vehicle tax has been paid is through number plate readers along the roads which can scan your registration number plate and use this information to check on the DVLA database whether a vehicle’s tax, insurance and MOT have been paid. Fines are issued for non-payment and failure to pay these fines can result in a larger fine of as much as £1000!
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Another notable change as explained in the infographic is that prepaid car tax is no longer transferred with the sale of a vehicle. Instead, the seller is able to claim a refund on any whole months left on the car’s tax and the buyer must apply for tax before driving the car away upon purchase.
The methods of payment for car tax remain the same (online, by phone or at the Post Office), however from 1st November 2014 the new system allows for payment of 6 or 12 months tax to be made by Direct Debit.
A recent survey conducted revealed that 50% of London car owners were not aware that they no longer need to display a car disc. Similarly, you may not be in the know of all the changes you need to be aware of so make it easy for yourself and check out this quick stop guide to paying your car tax in the UK.