End of an era: Tax discs will no longer be issued from October 1

Tax discs are set to be abolished in less than six weeks’ time, but half of all UK drivers are completely oblivious to the changes, according to a new study.

From October 1 the traditional tax disc will vanish, after 93 years on our windscreens.

Car owners still need to have paid vehicle tax to drive or keep a vehicle on the road: now police cameras will automatically check a car’s number plate to establish if this has been paid.

But of those who are aware of the changes, as many as 50 per cent do not know the exact date, six per cent think it’s next year and 32 per cent will not even try to find out what the changes are, according to the survey from comparison website money.co.uk.

Almost a third of those polled said they will await instructions from the Driving Vehicle and Licensing Agency, although the comparison website claims the DVLA has yet to start adding warnings to tax renewal reminders.

Motorists will need to be aware of impending tax disc changes or face a £1,000 fine as well as potential penalty charges against a car they no longer own, experts have warned.

The move away from paper discs will save motorists money on postage and will offer more flexible payment options - and it will also make it harder for tax dodgers to drive untaxed.

Estimates show the changes will save the taxpayer £10million every year, This is Money reported earlier this month.

The new rules mean that used car sellers must inform the DVLA of any change of ownership immediately. HPI provider hpicheck.com, has warned those caught unaware could face fines and charges.

Meanwhile used car buyers must watch out as any outstanding vehicle tax will no longer be transferred to the new owner; instead those selling will be able to claw it back.

The DVLA said it is important to notify it straight away of a change to ownership, otherwise the registered keeper could still be liable for the vehicle.

This means that those who sell their car need to get forms filled in and sent off straight away rather than leaving them sitting around.

Failure to do so can also result in a £1,000 fine.



Automatic number plate recognition cameras enforcing road tax, pictured here being used by DVLA teams, will be used to ensure tax discs are valid under the new digital system

Shane Teskey, senior consumer services manager at hpicheck.com, added: ‘Sellers who fail to inform the DVLA, could be fined and they will still be liable for any speeding or parking fines and vehicle tax for a car they don’t even own any more.'

The new rules will mean drivers have the option to pay by direct debit, which 53 per cent of drivers said they would opt for, according to money.co.uk.

Although the tax can be paid annually with no extra cost, those choosing to spread the cost by paying twice a year or monthly will incur a five per cent additional charge.

This is half of the ten per cent surcharge that is currently applied to six-month tax discs, used by 23 per cent of drivers, the study found

Hannah Maundrell, editor in chief of money.co.uk, said: 'Changes to the vehicle tax system are no bad thing and we fully welcome the introduction of direct debit payments, particularly for consumers who may be struggling to keep up with the soaring cost of driving.

'It will also help to eliminate the problem of people who genuinely forget to renew their tax and end up being stung with a hefty fine.

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

Over 1.7billion tax discs have been issued since 1921 – if they were put in a line, they would go around the world three times.