The trap that catches everyone — tax never transfers
Since the paper tax disc was abolished in October 2014, vehicle tax is tied to the keeper, not the car. The day ownership changes, any remaining tax is cancelled and refunded to the seller — so a car you’ve just bought is almost always untaxed the moment it’s yours, even if the previous owner had paid for months ahead.
- Re-tax it in your own name before you drive off. Use the green ‘new keeper’ slip (V5C/2) the seller hands you — it has the reference number you need to tax online or at a Post Office on the spot.
- Driving even one mile in an untaxed car you’ve just bought can trigger an automatic penalty — “I only just bought it” is not a defence.
- If the car will sit on your drive until you’re ready, declare a free SORN instead (see below) — you can’t inherit the previous owner’s SORN either.
Tax does not come with the car
When you buy a used vehicle, assume it is untaxed from the second you own it. Tax it in your name before the first drive — at gov.uk/vehicle-tax or a Post Office, using the green new-keeper slip. The seller gets their unused months refunded automatically; you start fresh.
How to tax your car — free, three ways
Taxing is free (you only pay the tax itself). You need a reference number from one of: a DVLA reminder letter (V11) or ‘last chance’ warning, your log book (V5C) in your name, or the green new-keeper slip if you’ve just bought it.
- Online — gov.uk/vehicle-tax, 24 hours a day, the quickest route.
- By phone — DVLA on 0300 123 4321, 24-hour automated service (you can’t set up a Direct Debit by phone).
- At a Post Office that handles vehicle tax — take your V5C or new-keeper slip, and your bank details if paying by Direct Debit. You may need to show valid MOT evidence.
Paying: you can pay for the whole year at once, in two 6-monthly instalments, or monthly by Direct Debit. Note that spreading the cost is slightly more expensive — there’s a 5% surcharge on Direct Debit and a 10% surcharge on a single 6-month payment, so paying annually is the cheapest. Direct Debit then renews automatically each year (as long as the car has valid MOT and insurance).
How much — and why we don’t print a table
What you pay depends on the vehicle’s CO₂ emissions, fuel type and registration date, and the
VED rates change every April. Check the exact figure for your car free with the GOV.UK tools:
check if a vehicle is taxed and the
vehicle tax rate tables. You must still tax the car even if the amount due is £0 because it’s exempt (for example a vehicle registered as ‘disabled’, or a
historic vehicle over 40 years old on a rolling exemption).
SORN — free, and it stops you paying for a car you’re not using
A SORN (Statutory Off Road Notification) tells DVLA your vehicle is off the road — kept in a garage, on a drive, or on private land, and not used or parked on a public road. It’s completely free, and it stops you having to tax or insure the vehicle.
| SORN fact | What it means |
|---|
| Cost | £0 — free to declare at gov.uk/make-a-sorn, by phone, or by post (form V890) |
| How long it lasts | Until you tax the car again, or sell, export or scrap it — no renewal needed |
| When it starts | Immediately (or the 1st of next month if you apply in the month tax expires); can’t be backdated |
| Transfer? | No — you can’t inherit a SORN; a new keeper must make their own |
| Driving it | Only to a pre-booked MOT or test — anything else risks a fine up to £2,500 |
SORN is the free off-switch
If a car is going to sit unused — between owners, off the road for repairs, a project car, or you’re away — a SORN stops the tax and the insurance clock and refunds the unused months. It is far cheaper than leaving a parked car taxed and insured for no reason.
The automatic penalties — and the insurance link
DVLA checks its records electronically, so you don’t need to be pulled over to be caught. Get it wrong and the penalties are automatic:
- Untaxed and no SORN — DVLA issues an automatic out-of-court settlement letter (a fixed penalty, reduced if you pay quickly); ignore it and it escalates to a court fine of up to £1,000, plus your car can be clamped or impounded.
- No SORN when one was required — an automatic £80 fine for failing to declare the vehicle off the road.
- Uninsured and not SORN’d — under continuous insurance enforcement, the registered keeper can be fined £100, have the vehicle clamped, impounded or destroyed, and be taken to court for a fine of up to £1,000. You must keep a car insured unless it’s declared SORN.
- Misusing a SORN — driving a SORN’d car anywhere other than a pre-booked test can mean a court fine of up to £2,500.
Tax, MOT and insurance are three separate clocks
You can’t tax a car without valid insurance and (where due) a valid MOT — and a SORN switches off the tax and insurance requirement together. Check your MOT date with our
MOT guide and check a car’s history before you buy with our
vehicle check.
Your refund — automatic, no claim needed
When you tell DVLA you’ve sold, scrapped, exported or SORN’d the vehicle (or it’s been written off or stolen), your tax is cancelled and you automatically get a refund cheque for any full months of tax left — posted to the name and address on the log book. Any Direct Debit stops automatically.
- The refund is for whole remaining months only — a part-month isn’t refunded.
- You won’t get back credit-card fees, the 5% Direct Debit surcharge, or the 10% surcharge on a single 6-month payment.
- No cheque after 8 weeks? Contact DVLA. Cheque in the wrong name? Return it to the DVLA Refund Section, Swansea SA99 1AL.
Never pay for a tax refund
The refund is fully automatic and free — there is no form worth paying for and no firm to pay. Any website or text offering to “process your car tax refund” for a fee, or asking for your bank details, is taking money for nothing or running a scam. Check anything that looks off with our
scam checker.
Do this now
Just bought a car? Tax it in your name before you drive — gov.uk/vehicle-tax with the green new-keeper slip, takes a couple of minutes.
Got a car sitting unused, or insurance lapsing? Declare a free SORN tonight at gov.uk/make-a-sorn — it stops the tax and insurance bills and triggers your refund. And if you sold a car recently, check the refund cheque actually arrived.
Northern Ireland
Vehicle tax and SORN work the same way UK-wide through DVLA, but NI has different insurance and MOT rules and you need extra documents to tax at a Post Office — check the current details on nidirect.gov.uk.