Last October DVLA introduced sweeping changes to car tax rules. But many motorists are still unaware of the new rules and incur fines. Motorists don’t really need to display the tax disk on the windscreen of the car. This is somehow ok, but the really confusing part is what will happen when a car changes hands? Will the vehicle tax be transferred?
You will not fall victim of the law only if you know the changes in new rules, we will help you understand and keep the penalties away.
On the first hand, you need to know what has actually changed. The biggest change happened October last year when the vehicle tax upgraded to digital system.
The need to display tax disc on the windscreen was eliminated and thanks to police cameras, the paid status check is done automatically through cars license plate. With the help of this upgrade, drivers are now able to pay the tax on monthly basis through direct debit.
The second thing which catches people out is when someone sells a car and it changes the ownership, will the remaining excise duty be transferred as well? Before this system, people used to tell the new owner that the vehicle has been MOT’d and properly taxed until the last days. But with this system, even if there is a valid tax disc or if the car changes hands, the paid tax is automatically cancelled. The former owners gets a refund and the new owner has to pay in full, right from the beginning.
Anyone who sells or buys a second hand car will be affected by this system. Although the number of vehicles clamped during this time has sky rocketed, but this is due to the confusion or not knowing the rules.
The question is, what will happen if you ever get clamped? Well, you have to pay a fee of £100 and to get the vehicle released; you need to pay up £160 as security. If you are unable to get the vehicle released within 24 hours, the release fee will become £200. Your vehicle could be disposed-off by DVLA if it has not been claimed for seven days.
A couple from Bridport, Dorset was hit with an £822 bill for their Ford Focus when they came back from holiday and found their car impounded.
