Road tax – Full Guide to paying your road tax

September 21, 2021 by Zoe Hicks – 9 mins read

Road tax is imposed on vehicles registered in the United Kingdom, and hydrocarbon oil responsibility (often known as gas tax) is imposed on gasoline consumed by motor vehicles. In 2009, the VED and fuel tax raised approximately GB£32 billion, with the cost delivered tax on petrol sales raising a similar £4 billion.

Full Guide to paying your road tax

As this article will soon make clear, there are many reasons as to why taxing a car is mandatory. Failing to tax your car could land you with a potential fine, resulting in your car being seized by authorities.

So, what is there to know about the process of car tax? Here’s everything you need to know.

How to Tax Your Car?

When your vehicle tax is up for renewal, you ought to get a V11 reminder letter. If you haven’t obtained this or you’ve misplaced it, then you can use the quantity in your V5C logbook. Alternatively, if you’ve simply offered the car and don’t have this logbook yet, then you must have a range on V5C/2 compliment given to you utilizing the preceding owner. Either way, you’ll want one of these numbers to tax your vehicle. You can select whether or not to pay month-to-month or in a lump sum and can pay by credit score card, debit card, or direct debit.

Not sure whether your car is taxed?

If you’re not sure about your vehicle tax, then an excellent way to take a look is thru the government’s car inquiry service. All you want is your car’s make and its number plate. Once you’ve entered the details, it will inform you when your tax is due for renewal as nicely as when your MOT is up. Additionally, if you have your V5C reference quantity with you, you 

can get tax fees and different facts about your car.

How much is Car Tax?

The value of your car tax will rely on the tax band your automobile falls into. Cars in the lowest band A are presently exempt from paying any tax. How much car tax you pay relies upon the degree of CO2 emissions and how old the car is. Car tax is greater for greater polluting cars, like older diesel cars. You’ll pay much less tax on more modern petrol cars, hybrids, and electric-powered vehicles. These have decreased tax fees to inspire vehicle proprietors to pick out greener vehicles.

How do I check if my car is taxed?

It’s convenient to take a look at whether or not your vehicle desires to be taxed. Just pop your registration wide variety into this vehicle tax checker and it will inform you if your car has been taxed and when it’s subsequent due to be taxed.

When is my car tax due?

Your vehicle wants to be taxed each year or when you purchase a new or used car. You can locate out when it’s due to the usage of our vehicle tax checker.

You can select to pay your vehicle tax in 1 of these ways:

  • Annual lump sum (this is the most inexpensive option)
  • Six-monthly lump sum
  • Monthly instalments with the aid of direct debit

If you pick out a lump sum, you’ll have to be aware to make the price at the proper time. If you have a month-to-month direct debit, the repayments will robotically come out of your financial institution account every month. However, you’ll want to take a look at whether or not it auto-renews every year, and you’ll want to set it up once more if you purchase a new car.

Car tax payment while logbook (V5C) is ready

If you have a new car, you may no longer have the logbook yet. But you nevertheless want to get your Vehicle Excise Duty in the region earlier than you force the auto away. If you’ve sold a second-hand car, any professional supplier must assist you to find out the car tax. If you’re shopping for a manufacturer’s new car, the supplier will commonly prepare the vehicle tax. The full charge of a new car commonly consists of the first year’s tax and the new registration fee, so you won’t have to type these out yourself. The provider will supply the DVLA proof of your identity and tackle it alongside important points of the car.

If you don’t have your V5C for any reason, you can get your vehicle tax at the Post Office. You will just want to practice for a new V5C at an identical time.

Car tax and Insurance

When you tax your car, the DVLA examines respectable databases to make positive that the vehicle has a legitimate MOT and insurance. It’s a great requirement to have all three for your car. If you’ve simply offered a new car, replace your vehicle insurance plan with the important points of your new car earlier than you tax it. That way, your insurance plan will be correct when the DVLA does its checks. The only time when you don’t want a car insurance plan is if you register your vehicle as off the avenue (SORN). In this case, you don’t want to tax your car either.

Refund on Car tax?

Car tax doesn’t get transferred when you purchase or promote a car. If you’re buying a used car, you have to tax it afresh – even if the preceding owner’s tax hasn’t run out yet. If you’re promoting a car, you can declare a refund for any full months of tax that are left. If you promote your car on the first day of the month, you will lose the tax for that total month. But you’ll get a refund for any different months that are left. You can additionally get a refund in different instances like if your car has been written off, scrapped, or stolen.

To declare a refund, you’ll want to cancel your vehicle tax by way of telling the DVLA that you no longer have the vehicle or it’s off the road. They will then give you a cheque for the refund. You can inform the DVLA that you’ve bought, sold, or transferred an automobile online.

Who is exempt from vehicle tax?

There are a few eventualities where vehicle proprietors are exempt from paying. These consist of if you:

  • Registered automobile as off-the-road (SORN)
  • Car that produces zero grams of carbon dioxide (CO2) emissions and fee much less than £40,000
  • Own a car registered between 1 March 2001 and earlier than 1 April 2017 that produces up to one hundred grams of CO2 per kilometer driven
  • Own a ‘historic vehicle’ – an automobile that’s forty years or elder
  • if you have a disability, for example, if you receive War Pensioners’ Mobility Supplement, receive the greater fee of the mobility issue of Disability Living Allowance.

What if I don’t tax my car?

The DVLA runs month-to-month assessments on its database to flag up any vehicles that don’t have tax but aren’t declared SORN. If your car’s flag, you’ll get a warning letter in the post. If you nevertheless don’t tax your car, you’ll get an £80 fine, which reduces via 1/2 if you pay within 28 days. This quality ought to go up to £1,000 (plus courtroom fees) if you don’t pay and the case goes to court. The police can trouble you, a Fixed Penalty Notice of £1,000 on the spot if they cease you in your vehicle and locate you don’t have tax.

How to Pay Road Tax Online Payment

Most drivers are now acquainted with non-transferable street tax, alternately made with the aid of DVLA. Payments can be made both annually, bi-annually, or monthly, however, be conscious there’s a 5% surcharge for biannual or month-to-month payments. The easiest way to tax your vehicle is to do it online on the government’s website.

Most Post Offices nevertheless let you pay your road tax at the counter. You can pay through a debit/credit card or Direct Debit. Simply take alongside your V11 reminder, V5C, or new keeper complement (V5C/2). You might also additionally want your updated MOT check certificate, which should nevertheless be legitimate at the time the tax duration begins. You’ll additionally want to comprehend the charge sum certain on the avenue tax renewal reminder. If you intend to set up a direct debit, then you’ll want your financial institution’s important points too.

Is it illegal to drive your car without taxing it?

If you pressure an untaxed car on a public street you should be fined up to £1,000 if caught. If you are using your car for a pre-booked MOT test, this is an exception to the place you can legally force your automobile except for tax. By law, it’s an offence to power an automobile on a public street in the UK with no avenue tax, even though there are some exceptions.

If you’re taking your automobile to a pre-booked MOT test, you can pressure your automobile on a street except it being taxed. Although the regulation doesn’t mention how much distance you can travel, stopping off at shops, for example, or using an unreasonably lengthy distance, can be considered as the usage of the car for different purposes. 

Used Cars and Tax: How Does it Work?

Previously, transferring automobile tax used to be possible. But because paper tax discs are no longer in circulation, promoting an automobile with a few months’ taxes left on it is a component of the past. Tax discs had been scrapped in October 2014; the DVLA stated this was once a cost-cutting problem and that getting rid of printing and postage charges would save £10 million every year.

Today, however, each time anybody sells a car, any full month’s worth of tax is automatically refunded. So, when you purchase a used car, it will be untaxed. By law, the car has to be taxed and used, except it may want to land you with a fine.

What tax band is my car?

Car tax bands are graded A to M, place A is zero-emissions – usually for electric powered motors – and M is the highest.

It is easy to take a look at which tax band your automobile comes beneath – the CO2 emissions facts are on your V5C registration document. Alternatively, you can check it using our vehicle tax band checker.

What if I am not driving my car?

If you are not driving for a period and you favor preserving your registered car on a public road, you have to nevertheless tax it.

If, however, you have an area to maintain your registered car off the public highways, you can notify the DVLA and gather a Statutory Off Road Notification (SORN).


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