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| Tax discs: AA warns Government could receive 'double money' in new system | |
| (about 1 hour later) | |
| The AA has voiced concerns the Government could receive extra revenue in the new vehicle tax system as the decades-old paper car tax disc becomes obsolete today. | The AA has voiced concerns the Government could receive extra revenue in the new vehicle tax system as the decades-old paper car tax disc becomes obsolete today. |
| In the new electronic system, vehicle owners will no longer have to display the vehicle excise duty (VED) disc on their screens. Instead, VED will be renewed either online or at Post Office branches. | In the new electronic system, vehicle owners will no longer have to display the vehicle excise duty (VED) disc on their screens. Instead, VED will be renewed either online or at Post Office branches. |
| The Government says this change will eventually save the Driver and Vehicle Licensing Agency (DVLA) about £7 million a year. | The Government says this change will eventually save the Driver and Vehicle Licensing Agency (DVLA) about £7 million a year. |
| But the AA said some of its members had complained that in certain cases the Government will get "double money" from drivers as someone selling a car during the month will not be able to get a refund for the rest of that month. The buyer must tax the vehicle and pay for the entire month if they want to drive it. | But the AA said some of its members had complained that in certain cases the Government will get "double money" from drivers as someone selling a car during the month will not be able to get a refund for the rest of that month. The buyer must tax the vehicle and pay for the entire month if they want to drive it. |
| One key change from today is that those purchasing a vehicle will not be able to take advantage of the remaining months and days of the car's existing VED and will need to renew the tax on it. | One key change from today is that those purchasing a vehicle will not be able to take advantage of the remaining months and days of the car's existing VED and will need to renew the tax on it. |
| The AA had campaigned for drivers to be able to tax their cars from a certain day rather than having to pay for the entire month. | The AA had campaigned for drivers to be able to tax their cars from a certain day rather than having to pay for the entire month. |
| AA president Edmund King said: "This is a downside to the changes as it means someone driving a car that costs £500 a year to tax would lose £41 if they sold it at the beginning of the month. Likewise a buyer purchasing a car mid-month would have to pay VED for the entire month. | AA president Edmund King said: "This is a downside to the changes as it means someone driving a car that costs £500 a year to tax would lose £41 if they sold it at the beginning of the month. Likewise a buyer purchasing a car mid-month would have to pay VED for the entire month. |
| "There are also potential issues for our patrols towing a vehicle which they will not know immediately if it is taxed. Likewise if a vehicle appears to have been dumped on the roadside the lack of a valid tax disc is often an indication that this is the case." | "There are also potential issues for our patrols towing a vehicle which they will not know immediately if it is taxed. Likewise if a vehicle appears to have been dumped on the roadside the lack of a valid tax disc is often an indication that this is the case." |
| Meanwhile, the RAC has expressed fears that the end of the paper disc could see the number of motorists failing to pay VED becoming as high as the number who drive without insurance. | Meanwhile, the RAC has expressed fears that the end of the paper disc could see the number of motorists failing to pay VED becoming as high as the number who drive without insurance. |
| The motoring organisation said this could result in a £167 million a year loss to the Exchequer. | The motoring organisation said this could result in a £167 million a year loss to the Exchequer. |
| But the DVLA has said there is "no basis" to the RAC figures, claiming it is "nonsense" to suggest getting rid of the tax disc would lead to an increase in vehicle tax evasion. | But the DVLA has said there is "no basis" to the RAC figures, claiming it is "nonsense" to suggest getting rid of the tax disc would lead to an increase in vehicle tax evasion. |
| Those selling a vehicle will be able to claim a refund from the DVLA for unused months of road tax. | Those selling a vehicle will be able to claim a refund from the DVLA for unused months of road tax. |
| Anyone can still check the tax status of any vehicle by using the DVLA's vehicle inquiry service. | Anyone can still check the tax status of any vehicle by using the DVLA's vehicle inquiry service. |
| Additional reporting by PA | Additional reporting by PA |