New Online Tax System
For The UK!
As of October 2014, the coloured paper circles that we are all too familiar with seeing in the windscreens of vehicles on our roads were no longer being issued to UK motorists. For those buying cars online, they have been replaced by nothing, physically anyway. All of the UK’s road tax system has been moved online, with ANPR (Automatic Number Plate Recognition) cameras checking for those that aren’t taxed. The details have changed in terms of motor trade tax on a vehicle when it comes to buying or selling it.
If you have taxed your vehicle for 12 months for example, and sell it with 3 months left, you will be automatically refunded for the 3 remaining months you paid for, and the buyer of the vehicle will have to pay to re-tax it under their name – this way, it ensures that the owner doesn’t pay for more tax than they use, making the whole situation of buying and selling cars more fair, with nobody losing out financially. Any surcharges you pay when taxing your vehicle aren’t refundable however.
When selling a vehicle, your refund will be sent to the address on record, and take four to six weeks to be delivered to you. You will also receive a letter to confirm that you are no longer liable for the vehicle after letting the DVLA know. These regulations and processes remain the same for motor traders – the tax will be refunded as soon as the DVLA know you’ve sold the vehicle.
It's also worthwhile reading this post on starting up a business.
Unfortunately this means that one previous selling point of motor traders and motorists trying to sell their cars – the fact that it has tax still on it – is now null and void. A lot of motorists believe that it’s not a good idea, and isn’t going to work, some believe the complete opposite – it is a great idea - and many weren’t even aware of the switch over was happening.