Updated 27 November 2018If you own a car, you probably have to pay car tax (Vehicle Excise Duty). However, there are some scenarios where you can cancel your vehicle tax. You may even be eligible for a refund on your vehicle tax, calculated from the date when you inform the DVLA of your vehicle’s change in circumstances.
You can cancel your vehicle tax if your car has been:
You must tell the DVLA when any of the above situations occur as this is the only way to cancel your vehicle tax and apply for a tax refund. In fact, in most circumstances, your car tax will be cancelled automatically and your refund issued directly to you, once the DVLA has the details.
This one is easy. Just go to Vehicle Enquiries DVLA and select the option that applies to you:
Once you have done that, follow the steps, selecting the relevant option on each subsequent page and you will end up with an email template to fill in. Make a note of your reference number and don’t forget to check your spam folder for the response. Then you can wait for your cheque to arrive in the post.
Once your vehicle is sold or transferred to someone else, you just need to notify the DVLA by post or email and they will automatically cancel your direct debit (if that’s how you pay) or send you a refund from the date when they receive your notification that the car is sold. The process is simple, quick and, hopefully, painless!However, in all cases, remember to check that the name and address on your log book are current, or your car-tax refund cheque will go astray!
First of all, in case you aren’t sure, the V5 document is the vehicle’s official logbook. It is a legally issued document from the DVLA, and is your proof of ownership. The document contains specific vehicle and owner details. Moreover, it is also used to keep track of the registered keeper when the vehicle is sold on for new ownership.In an ideal world, you won’t have lost it, had it stolen, burnt it in a fire… but in the real world, these things happen all the time. So, if you need to cancel your vehicle tax but can’t find your V5 document… the first thing to do is get a replacement log book.
You can apply by:
Don’t forget, once you have got your hands on your new V5 document, you still need to go through the process of cancelling your tax and informing the DVLA of the change in your vehicle’s circumstances. Your car-tax refund will follow in about six weeks. See below for more details.
Once you’ve informed the DVLA about any of the above situations, your vehicle tax will be automatically cancelled. You’ll receive a refund cheque for the full months remaining on your vehicle tax.The refund amount is based on the amount of time left on your tax disc. The DVLA calculates the refund amount based on when it receives your request and the remainder of tax that you’ve already paid for. If you pay by direct debit, it will be automatically cancelled.
You won’t receive a refund on:
The DVLA says your refund will typically arrive within six weeks. If you haven’t received it by then, contact the DVLA. Sometimes, the DVLA may provide a refund cheque with incorrect information or names. If this happens, return the cheque to the DVLA, listing the errors and supplying the proper information. You should receive a replacement cheque within four weeks.
The Government first introduced emissions-based vehicle taxation in 2001, when it created tax bands for cars that increased the amount of road tax paid depending on the emissions they produce. When the most recent road-tax changes took place on 1 April 2018, all cars previously registered had their tax frozen at the following rates:
And if you have a newer car? The rates for cars registered with the DVLA after 1 April 2017 are calculated as follows.For the first year, for all cars, vehicle tax is based on CO2 emissions. After that, your car tax is dependent on your vehicle type:For cars with a list price of under £40,000, the rates are:
New vehicles with a list price (published price before discounts) of more than £40,000:
So, you’ve cancelled your car tax, organised a refund and are waiting for your tax-refund cheque to arrive – all you have to decide now is what to spend it on.