Car tax evasion triples after paper tax disc scrapped

Since the paper tax disc was abolished the number of unlicensed vehicles on the road has tripled.

The data, published every two years, shows that the government potentially lost out on £107m from 755,000 unlicensed vehicles last year.

The RAC said the decision to get rid of the paper tax disc three years ago has proved "costly" when it should have saved the Treasury £10m a year.

"It appears that having a visual reminder was an effective way to prompt drivers into renewing their car tax - arguably more drivers are now prepared to try their luck and see if they can get away with not paying any vehicle tax at all, or are simply forgetting to tax their vehicle when they are due to."

When the abolition of the paper tax disc was announced by then-Chancellor, George Osborne, the Treasury said it showed government was moving "into the modern age".

The RAC said a third of untaxed vehicles had changed hands since September 2016, indicating that many drivers were not aware that tax does not carry over when ownership changes.

The seller receives a refund of any full months of remaining tax while the new owner must tax the vehicle immediately.

DVLA clamping increase

Thousands of motorists have been fined or had their cars towed away after falling foul of new rules following the switch to digital tax discs.

Many are buying used cars unaware that the old paper documents are now automatically cancelled when a vehicle changes hands.

Ignorant that they must fork out for a new digital one – even if the existing paper disc is months from expiry – rising numbers of drivers are falling prey to clampers.

Critics allege that the DVLA has been operating a 'money-making scam' after figures yesterday showed clamping soared after the paperless system was introduced in October last year.

Many say the authority was too quick to penalise motorists without first warning that their car was not taxed. Drivers have faced bills of up to £800 to get their impounded vehicles back.

The DVLA was accused of 'heavy-handed and Draconian' behaviour yesterday after figures showed its use of clamping rocketed by 60 per cent from about 5,000 vehicles a month before the changes to 8,630 last month.

With no right to appeal against the fines to an independent body, drivers have little choice but to pay up. 

The DVLA is estimated to be making millions of pounds a year because it receives double road tax payment – from both the seller and the buyer.

A DVLA spokesman said: 'The changes have been widely publicised and we write to every vehicle keeper to remind them of the new rules before the vehicle tax expires.

'We also write to every new vehicle keeper when they buy a used vehicle to inform them that they must tax the vehicle before they use it. 

'In addition, if a driver does not tax their car we will send a warning letter to remind them to tax as they are at risk of enforcement action.'