After 93 years of service, the car tax disc bows out on October 1st. But what’s replacing it, and how will it affect motorists the length and breadth of Britain?

Perhaps most surprisingly is how many of us in the UK don’t know the change is coming. According to a recent RAC survey of 2,000 drivers:

**36% **weren’t aware that the paper disc was being scrapped.

**47% **didn’t know when the change was due to happen.

To make sure we all have the right information, here’s Theory Test Pro’s FAQ about the new system:

“What is replacing the paper-based car tax disc?”

From October 1st, you can remove the car tax disc in your windscreen and instead, your car tax details will now be registered at the DVLA.

“How does the system work?”

Number plate recognition cameras across the country will monitor car number plates and match them against vehicle duty records automatically. If you are shown not to have paid, you’ll be in trouble. The DVLA says that the system is a far more efficient method of carrying out checks than inspectors or the police having to visually inspect a vehicle’s windscreen for an up-to-date paper disc.

“Ah, new technology – there’s bound to be teething problems, right?”

No – the recognition technology is already being used by enforcement agencies so it’s tried, tested and trusted by the authorities.

“Why is the change being made?”

The DVLA claims that the system will be cheaper to run, i.e. cost taxpayers less money, plus it will help make paying for vehicle duty easier for the public.

“How does it make it ‘easier’?”

You’ll still pay the tax in the same way as before – you’ll receive the usual reminder from the DVLA in the post before being able to pay via phone, online or at the Post Office – but you won’t need to wait for the paper disc to arrive in the post and stick it in your window. Instead, the vehicle duty is registered on the DVLA’s database as being paid.

“Is that all?”

No, the real boon for Britain’s cash-strapped motorists is that the duty can be paid in monthly instalments for the very first time (including via Direct Debit) from November 1st. So instead of one potentially big hit on your bank balance, you can pay it off in smaller chunks. Better still, you won’t have to worry about renewing – the money will be taken out automatically on a rolling basis until you inform the DVLA otherwise.

“That sounds good – but what’s the downside?”

You will be charged 5% extra for the privilege – but for those of us who previously paid for six-month discs instead of a full year’s, that’s a 5% saving; a six-month tax disc currently incurs a 10% surcharge. For those who prefer paying up front, you can still pay for 6 or 12 months in a single hit and not suffer a surcharge.

“But what if I still have a few months left on my existing paper disc?”

Don’t worry – your payment is registered already on the system and remains valid, so you can safely pluck that paper disc out of your car and introduce it to the nearest recycling bin without fear of recrimination.

“What happens to any remaining car tax when I come to sell my car?”

It’s all change here too – you’ll get any left over amount automatically refunded to you, while the new owner must tax the car from fresh. Remember though – you must inform the DVLA immediately of any change of ownership, or else risk a stiff £1,000 fine.

“If I am buying car, how do I check up on its tax status?”

Head here and simply enter the make, model and the car’s number plate. Job done.

“It all sounds good – but wherever there’s a new government scheme, there are always critics…”

True – the RAC claims that the new system could lead to the economy losing £167 million a year due to tax evasion, wiping out the yearly savings of £10 million expected with the switch. The DVLA has dismissed such claims as “nonsense”.

Main image © Paul Townsend