End of the tax disc

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Seems like a step forward with the announced abolition of the tax disc. People will also be able to pay by monthly direct debit with a 5% charge.

George Osborne will today announce that the paper discs will be consigned to history next October as part of an overhaul of vehicle excise duty.

The department said the abolition of paper discs – which will save £7m in administration costs – was supported both by the police and the Post Office.

Drivers will also, for the first time, be able to spread the cost of road tax by paying for it monthly by direct debt, the Chancellor will tell MPs in the Autumn Statement.

The charge for paying by direct debit will also be reduced from ten per cent to five per cent. Motorists will still be able to tax their cars by telephone or in person at a post office.

Article

Update 16/01/13:

Private Car Sales Cannot be Sold with Road Tax:

Motorists that sell cars privately will not be entitled to offer the “unexpired tax” incentive from October 2014, the Automobile Association has revealed. Sellers will have to claim vehicle excise duty refunds for any remaining months from the Driver Vehicle Licensing Agency (DVLA). Buyers will then have to pay road tax online, at post offices or via telephone before taking to the road. - See more at: http://www.motoring.co.uk/car-news/...=newsletter&src=motoring#sthash.ARZbk2RT.dpuf

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Government in common sense shock

Excellent to see this being brought in



Nw if they can just abolish ved altogether we would be set
 
Need a new tax disc holder, been waiting a long time to hear this news.

I think I can hold on til October, but the big questions is, can my tax disc holder!
 
Paying the tax a little each month will help than having a lump sum to worry about at the end of the year, this is great

A good idea from the government, who woulda thunk it!?
 
Paying the tax a little each month will help than having a lump sum to worry about at the end of the year, this is great

A good idea from the government, who woulda thunk it!?

You are better of paying by a 0% credit card and pay it of that way then paying the extra 5% interest charge.

That's how i pay for my road tax and car insurance.
 
Wonder if this will make 2006+ high co2 cars more attractive to people as £400 road tax at once is a lot of money but spread over 12 months doesn't seem nearly as scary.
 
You are better of paying by a 0% credit card and pay it of that way then paying the extra 5% interest charge.

That's how i pay for my road tax and car insurance.

Or set up an easy access savings account and put money aside every month for when tax, insurance, servicing is due.

That's how I pay for my road tax and car insurance, make a few quid on the savings too
 
Wonder if this will make 2006+ high co2 cars more attractive to people as £400 road tax at once is a lot of money but spread over 12 months doesn't seem nearly as scary.

Good point.

However, the government have failed to see the impact of this change. Just think of all the lost sales of tacky tax disk holders Halfords is going to miss out on!

:p
 
Can't wait to read a piece in the guardian about the sad loss of the Great British Tax Disc, how it's been confined to history as we move onto a new dawn in the motoring world.
 
Pay??? For Road Tax??? [looks at 89g/km CO2 car in Parking Space] ;)

As long as in the 're-vamp' they don't move the goalposts for group A, B and even C cars.

What am I gonna put in my Magnetic 'Kernow' Tax Disc holder?? :(
 
Pleased to get rid of the disc, however this new system will make it easier for the Gov to bump up prices.

Should have gone the whole way and stuck the cost of tax on fuel.
 
The direct debit is still a years worth of Tax, just paid for in monthly installments. There is nothing in there to suggest they are moving away from a system of paying for Tax a year at a time.
 
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