tax disc

It’s time to scrap your tax disc

Written by | News

As of today, you no longer need to display that little circle piece of paper in the corner of your windscreen.

1st October 2014 marks the day that, after 93 years, the tax disc has been given the boot. Not only does this mean you’ll no longer have to fiddle around with that bit of perforated paper anymore, but you won’t have to find yourself the perfect novelty tax disc holder either.

Don’t celebrate too much just yet though, as you still need to make sure you’ve paid for your car tax, and no, the new rules don’t mean you can get away with not having your car taxed. But the changes will bring some good news when it comes to finances, as drivers can now pay by monthly direct debit.

Previously, there was only two ways to pay for road tax (vehicle excise duty): for 6 months or 12 months. Drivers choosing to pay for 6 months’ worth of road tax have, until now, faced a 10% surcharge, but this will now be halved to 5%.

tax discs did a bit of research into the changes, finding that 53% of drivers they asked would use the monthly direct debit option to pay for their road tax, with one in five of them willing to pay up to 20% more for the tax if it meant they didn’t have to pay in a lump sum.

Hannah Maundrell from said: ‘The costs of running a vehicle can be a bitter pill to swallow for many consumers on top of all the other everyday living costs they have to find the money for. We are delighted that drivers now have the option to pay for vehicle tax by direct debit, not only because the ability to pay monthly will help make the tax feel more affordable for many, but also because it will give consumers an easy way to avoid the hefty fines you incur if you forget to tax your vehicle.

‘The cheapest option will be to set up an annual direct debit because there’s no additional charge, however those that want to spread the cost will pay less for doing so than before – around £10 a year on average if you pay for 6 months at a time.’

Selling or buying a car

The changes also mean that tax can no longer be transferred between owners when you sell a car, with sellers instead having to claim back the remaining months’.

For more information, visit

Last modified: 1st October 2014

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