Is it now easier for motorists to get away without paying Vehicle Excise Duty?

The abolition of the tax disc October 2014 raised fears it would become easier for motorists to get away without paying Vehicle Excise Duty.

The  DVLA says that, despite some motoring organisations warning that the change could lead to a sharp rise in the number of untaxed vehicles, "the vast majority of drivers continue to tax their vehicles on time". A spokesman adds: "Since 1 October, more than 16-and-a-half million drivers have taxed their vehicles – with over 70% doing it online, more than ever before."

The DVLA is confident that the new system will not see more tax evasion. This is mainly because even before its abolition, the tax disc was not the chief means of ensuring VED had been paid.

The DVLA staff rely on its own database to see who has failed to tax their vehicles, with the keeper of an untaxed car sent a penalty notice in the post. Fines for failing to pay tax can be steep: there is a potential fixed-penalty notice fine of £50 and untaxed vehicles can be clamped, with a £100 release fee charged. A £160 surety also has to be paid before the vehicle is released, although this is refunded provided the vehicle is taxed within two weeks.

ANPR cameras are also used to catch offenders, says Ian Crowder at the AA. "There is the risk that the abolition of tax disc will encourage some people to believe these things won't be followed up," he adds. It would appear however that changes to the vehicle tax system that were introduced at the same time as the disc was phased out are catching some motorists out.

These changes meant that tax on a vehicle no longer carries over to a new owner as it did before October 2014 making it the responsibility of the buyer to pay tax immediately even if the vehicle is only part way through its current tax year. (the seller will automatically get a refund of any tax remaining when they sell it)

 "This simplifies the process of buying and selling used vehicles as now all new keepers must tax the vehicle before they use it rather than having to find out if it’s taxed or whether the seller has had the tax refunded."

Paper Vehicle Tax Disc Will no Longer be Issued

For vehicle tax starting from 1 November 2014 the DVLA will be offering motorists the ability to spread their vehicle tax payments should they wish to do so, they will be able to pay vehicle tax by direct debit

• annually
• biannually
• monthly

There will be no additional handling fees for annual payments but there will be a small surcharge of 5% of vehicle tax for biannual and monthly payments. This is half of the 10% surcharge that is currently applied to 6 monthly tax discs and which has been in existence for a number of decades.

From 1 October 2014 the paper tax disc will no longer be issued. Vehicle tax will still need to be paid but with DVLA having a digital record of who has and has not paid, a paper tax disc is no longer necessary as proof that vehicle tax is paid. The vast majority of motorists pay their vehicle tax with latest figures confirming that over 99% of motorists’ tax their vehicles on time… Most on-road enforcement action is now based on using Automatic Number Plate Readers. These cameras use the number plate rather than a visual inspection of the tax disc.

The police also have access to DVLA records via the police national computer. There are significant savings for fleet operators and other businesses from not having to handle the administration of tax discs.