Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine

Research shows 40 per cent of drivers are unsure about the DVLA's changes

Car tax laws are changing in little over a month but with more than two thirds of drivers unaware of the new rules, millions could be risking fines of up to £1,000.

The paper tax disc is being scrapped after 93 years on 1 October, although tax will still need to be paid, and it will no longer be transferred when buying a second-hand vehicle.

A poll of more than 1,000 drivers found that 40 per cent were completely unaware of the impending changes and of those who were, half were unsure when they were coming in and many were not planning to find out more.

Research by a financial advice and comparison website found that one in three drivers claim they struggle to pay for their vehicle tax and many resort to overdrafts, borrowing from family friends or payday loans.

Anyone buying a second hand car will have to pay more for vehicle tax after the DVLA abolishes transfers.

Sellers who notify the authority will automatically get a full refund for the time left on the disc but buyers will have to pay for new tax - £175 a year on average.

People selling their car are expected to tell the DVLA straight away of the change of ownership or face fines of up to £1,000.

Among the more welcome changes is the ability to pay via direct debit instead of the year or six-month options currently available.

But drivers selecting monthly payments will pay 5 per cent extra each year on top of the average annual cost of tax and the millions of people who pay with a credit card will be hit with a £2.50 surcharge.

The DVLA has revealed a list of personalised licence plates it has banned for being in ‘poor taste’ The DVLA will no longer allow tax to be transferred to new owners of second-hand cars Hannah Maundrell, the editor of money.co.uk, said direct debits would help people who genuinely forget to renew their tax and end up being stung with a hefty fine.

“I suspect the new system may experience some teething problems so drivers really need to make sure they're on top of their game,” she added.

“Just because you don't have to display a tax disc doesn't mean you can get away with not paying it, if anything you're more likely to be caught now than before.”

Announcing the changes after last year’s Autumn Statement, the Department for Transport said the DVLA has a digital record of payments and a paper tax disc is no longer necessary as proof.

Most inspectors patrolling roads use automatic number plate readers (ANPR) instead of examining existing discs.

More than 99 per cent of motorists tax their vehicles on time.

Sport
The sun rises over St Andrews golf course, but will it be a new dawn for the Royal and Ancient Golf Club?
sportAnd it's Yes to women (at the R&A)
Arts and Entertainment
Friends is celebrating its 20th anniversary this year
tvSeries celebrates 20th anniversary
Sport
Yaya Touré (left) and Bayern Munich’s Spanish defender Juan Bernat
footballToure's lack of defensive work is big problem for City
Voices
voicesApple continually kill off smaller app developers, and that's no good for anyone
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Liam Neeson said he wouldn't
tv

Liam Neeson's Downton dreams

Sport
Wembley Stadium
footballNews follows deal with Germany
Arts and Entertainment
A spell in the sun: Emma Stone and Colin Firth star in ‘Magic in the Moonlight’
filmReview: Magic In The Moonlight
Sport
A 'Sir Alex Feguson' tattoo
football

Arts and Entertainment
Ben Whishaw is replacing Colin Firth as the voice of Paddington Bear
tv

Thriller is set in the secret world of British espionage

Life and Style
life

News
ScienceGallery: Otherwise known as 'the best damn photos of space you'll see till 2015'
Life and Style
fashion

Bomber jacket worn by Mary Berry sells out within an hour

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Volunteer your expertise as Trustee for The Society of Experimental Biology

Unpaid Voluntary Position : Reach Volunteering: Promising volunteer Trustee op...

Email Designer

£30000 - £35000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...

Psychology Teacher

£110 - £130 per hour: Randstad Education Reading: Psychology Teacher needed fo...

Food Technology Teacher

£85 - £120 per day: Randstad Education Cheshire: Randstad Education are curren...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week