Government to abolish car tax discs

Car tax discs displayed on vehicles are to be axed after having been used for 93 years.

Chancellor George Osborne will announce the changes in his Autumn statement, but the system is to be replaced with an electronic alternative, which is already being used anyway by the police and the DVLA.

Checking tax discs on cars was once a regular duty for police officers, but now registration numbers are checked against an electronic database to confirm the tax status of that vehicle. By removing the necessity for tax discs the government is continuing to expand its paperless services, taking advantage of online and electronic technologies.

It seems logical that the existing car tax disc system, that was introduced in 1921, is due for an update. Payment will now be possible with a monthly direct debit, and the whole announcement showed that the government was 'moving into a modern age', according to the Treasury.

Currently, by paying for a full year rather than 6 months saved you 10%, but this is expected to be reduced to 5%. The introduction of a pay-monthly option is also expected to cost 5% more than paying for a whole year in one go.

The changes are expected to come into place in October 2014.

To find out how much car tax will cost for any UK vehicle, take a look at our car tax calculator.

Ben Lane

Author:Ben Lane
Date Updated:5th Dec 2013

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