See why you could be putting your tax disc back in your window.
It’s been 2 years since the paper tax disc was scrapped and already the DVLA have seen a plunge in revenue. In the last year their revenue has fallen from 6.023 billion to 5.93 billion! (source: BBC news). With a £93 million difference in revenue it leaves some unanswered questions. The drop in revenue has fallen more than experts forecasted according to the Department for Transport (DfT).
The DVLA knew that the transition period with customers adapting to the new changes was likely to have an impact on the collection of road tax payments, however the drop in revenue is larger than predicted. The DVLA believe that the removal of a valid paper disk may have contributed to unintentional non-compliance from UK motorists which could be contributing to the fall in revenue.
What is being done to improve figures?
In addition to removing the paper discs, the changes have also removed the option of transferring the road tax to a new owner if a car has been sold. Sellers must now cancel the tax and the new owner must tax the vehicle to be able to drive it. The DVLA have taken steps to help motorists understand the changes and what’s involved with the new processes and are a quick to respond if there are any issues.
If you have bought a second hand car or are looking to do so click here to find out more information about cancelling and renewing car road tax…
What does the future look like?
The DVLA said:’Whilst it is likely that the transition to new rules will have caused a temporary peak in non-compliance which will reduce as awareness improves, it is too early at this stage to draw a conclusion on whether the changes will result in a long term increase or decrease in non-compliance levels and the level of VED ultimately collected.’
Make sure you are fully compliant as on many busy roads cameras with number plate recognition have been placed to check the database for drivers who haven’t paid their tax.