Car tax disc to be abolished

Chancellor George Osborne announced in the autumn statement that the car tax disc is to be abolished and replaced with an electronic database of vehicles taxed.

After 93 years of sticking the round colourful disc in your car window, from Autumn, a simple electronic register will be the means authorities use to check whether your car is taxed correctly. In truth, it is outdated – Insurance and MOT’s are now electronically stored so it was only a matter of time.

So what does this mean as far as paying?

Currently, the DVLA allow you to pay for your car tax every 6 or 12 months. The new system will allow people to pay monthly by direct debit is so desired. That’s excellent news for young car drivers who may not be able to shell out the ‘up-front’ cash for a conventional tax disc.

Paying for the tax disc can also be done online with automatics checks to see if the car is insured and has a valid MOT to make it much easier than finding all your documents and trudging off to the post office. Two minutes on the DVLA website and its done. Incidentally, you can currently do this for the current paper tax disc. It takes a few days to arrive in the post.

Vehicle tax was introduced in the 1888 Budget and the system of excise duty applying specifically to motor vehicles was introduced with the Roads Act 1920, with the tax disc appearing the following year.

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