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| Thousands unable to renew car tax, as new system stalls | Thousands unable to renew car tax, as new system stalls |
| (35 minutes later) | |
| Thousands of customers have been unable to renew their car tax online, after the Driver and Vehicle Licensing Agency (DVLA) website was swamped. | Thousands of customers have been unable to renew their car tax online, after the Driver and Vehicle Licensing Agency (DVLA) website was swamped. |
| A new system comes into operation on Wednesday, after which it will no longer be necessary to display a paper tax disc in the windscreen. | A new system comes into operation on Wednesday, after which it will no longer be necessary to display a paper tax disc in the windscreen. |
| But some motorists have spent up to 13 hours online, trying to get their car tax renewed. | But some motorists have spent up to 13 hours online, trying to get their car tax renewed. |
| The DVLA said the site had seen "an unprecedented volume of traffic". | The DVLA said the site had seen "an unprecedented volume of traffic". |
| Mike Dewsbury from Manchester was one of those who struggled to pay for his car tax - known officially as Vehicle Excise Duty (VED). | Mike Dewsbury from Manchester was one of those who struggled to pay for his car tax - known officially as Vehicle Excise Duty (VED). |
| "It's a joke. I need to get to work but legally can't because my car isn't now taxed," he told the BBC. | "It's a joke. I need to get to work but legally can't because my car isn't now taxed," he told the BBC. |
| The DVLA said that an extra 30,000 people had visited the site, compared to the same day last year. | The DVLA said that an extra 30,000 people had visited the site, compared to the same day last year. |
| It apologised for the disruption, and advised people who need to renew their tax urgently to do so at a Post Office instead. | It apologised for the disruption, and advised people who need to renew their tax urgently to do so at a Post Office instead. |
| 'Double taxation' | 'Double taxation' |
| Meanwhile the AA has complained that the new vehicle tax system will provide the government with extra revenue, as some cars will, in effect, be taxed twice. | Meanwhile the AA has complained that the new vehicle tax system will provide the government with extra revenue, as some cars will, in effect, be taxed twice. |
| Under the new tax disc system, someone buying a car will no longer be able to benefit from any unused period on the disc. | Under the new tax disc system, someone buying a car will no longer be able to benefit from any unused period on the disc. |
| But while buyers will need to renew the tax immediately, sellers are not allowed a refund for just part of a month. | But while buyers will need to renew the tax immediately, sellers are not allowed a refund for just part of a month. |
| So if a car is sold on say, the first day of the month, both buyer and seller will have paid the tax for that month. | So if a car is sold on say, the first day of the month, both buyer and seller will have paid the tax for that month. |
| "Someone driving a car that costs £500 a year to tax would lose £41 if they sold it at the beginning of the month," said Edmund King, the AA's president. | "Someone driving a car that costs £500 a year to tax would lose £41 if they sold it at the beginning of the month," said Edmund King, the AA's president. |
| "Likewise a buyer purchasing a car mid month would have to pay Vehicle Excise Duty for the entire month," he added. | "Likewise a buyer purchasing a car mid month would have to pay Vehicle Excise Duty for the entire month," he added. |
| However the DVLA said it would not bring in much additional revenue. | However the DVLA said it would not bring in much additional revenue. |
| It said it was always the case that car-sellers were only credited for each whole month that the disc was not used. | It said it was always the case that car-sellers were only credited for each whole month that the disc was not used. |
| And it added that 65% of cars bought do not include tax passed on by the previous owner. | And it added that 65% of cars bought do not include tax passed on by the previous owner. |
| Number-plate recognition | Number-plate recognition |
| The RAC has previously said the new system will result in tax evasion to the tune of £167m a year. | The RAC has previously said the new system will result in tax evasion to the tune of £167m a year. |
| But the DVLA dismissed that claim as nonsense. | But the DVLA dismissed that claim as nonsense. |
| It said it expects to save £10m a year by not having to print and distribute paper tax discs. | It said it expects to save £10m a year by not having to print and distribute paper tax discs. |
| Those who have not paid the tax will be spotted on number-plate recognition cameras, or their details will show up online. | Those who have not paid the tax will be spotted on number-plate recognition cameras, or their details will show up online. |
| Other changes coming into force on 1 October include a higher national minimum wage, and new rules on people who die intestate. | Other changes coming into force on 1 October include a higher national minimum wage, and new rules on people who die intestate. |