Vehicle Tax Disc to be removed

Tax Disc

The Vehicle Tax Disc will be obsolete from 1 October after 93 years in use in the UK.

It is being replaced by an electronic system that will use your registration plate to check whether your vehicle is taxed which means you can rip up your tax disc from the 1 October.

The change has been brought about as a way of saving money, according to the Government, which has estimated it will save £10m by getting rid of the paper disc.

The new system is designed to offer more flexible payment options for riders and motorists after the introduction of a direct debit system and the option of monthly payments.

It will also make it more difficult for people to avoid paying road tax with police cameras monitoring vehicles on the road more efficiently.

One of the biggest changes comes when buying or selling a used motorbike as vehicle tax will no longer be transferred when you sell.

Previously, when you bought a bike you inherited its road tax however now you need to purchase vehicle tax immediately or risk being hit with a £1,000 fine.

Those selling a bike will be refunded any outstanding tax payments once they have informed the DVLA using the bike’s V5C form.

If you’re confused about the change in the vehicle tax system, you can read our guide to the new vehicle tax changes.

Next page: A guide to vehicle tax changes