Vehicle tax changes

From 1 October 2014, the paper tax disc will no longer be issued and required to be displayed on a vehicle windscreen. DVLA holds a digital record of taxed and untaxed vehicles.
 
If you have any remaining months left on your current paper tax disc from 1 October 2014, you can either remove the tax disc from your vehicle or display the disc until it expires.
 
Checking the tax status of a vehicle
 
You can check the tax status of any vehicle online (including rental vehicles). DVLA will still notify you when your vehicle tax is due for renewal. You will still need to renew your vehicle tax if your vehicle is exempt eg historic tax class.
 
Buying or selling a vehicle
 
When buying a used vehicle you will be able to use the V5C/2 - new keeper supplement to pay vehicle tax at a Post Office branch, along with the MOT certificate (if applicable) and fee. From 1 October 2014 you will also be able to pay vehicle tax using the V5C/2 online or by phone.
 
When selling a vehicle to a new vehicle keeper, the vehicle tax will no longer be transferable. Vehicle tax will end when a vehicle is sold and the new keeper will need to get the vehicle taxed immediately before the vehicle can be used.
 
Paying vehicle tax by Direct Debit
 
From 1 November 2014 you can pay your vehicle tax online by Direct Debit either:

annually
6 monthly
monthly
 
Whichever option you choose, the payments will continue automatically until you tell DVLA to stop taking them or you cancel the Direct Debit with your bank.
 
If your vehicle needs to be taxed from 1 November 2014, you can set up a Direct Debit when paying online for vehicle tax. DVLA will forward your instructions to your bank.
 
If you have been paying your tax annually or every 6 months, you will get a refund for any full calendar months left on the tax period when you tell DVLA you no longer require tax.
 
When the Direct Debit scheme can’t be used
 
Paying by Direct Debit will not be available to:

first registration vehicles
fleet schemes
HGVs (paying the Road User Levy)
 
Declaring your vehicle is off the road (SORN)
 
DVLA will automatically stop taking Direct Debit payments from your bank once you declare the vehicle off-road (SORN).