As we all probably know by now, the car tax system is changing on 1st October.

Great, no more clutter in the corner of the windshield. However, I don't see the sense in this next bit....

When selling a car, you claim the unused (whole months worth) tax back. When buying a car, you have to put tax on it. The days of carrying tax across with a new (to you) car will be over).

Where is the logic in this? I get my money back from the DVLA after selling my old car. I then give it straight back to them when I buy new tax for my new car!

Am I missing something obvious here? Is the DVLA loosing money and now changing things to prevent that?

It's a similar story when selling cars to dealers at the moment. When I sold my last car I asked them if it's easier for me to just leave it taxed and have them give me the cash to the value of what I would have reclaimed, but they said I needed to reclaim it and they would then retax it.

All I can think is it's a way for them to make a bit more money from it - unless you sell the car on the last day of the month and the next owner buys it the following day the DVLA get paid twice for the switchover month. Once in your original money that can't be reclaimed and once for the new guy retaxing it! I see no other reason for doing it.

It's a similar story when selling cars to dealers at the moment. When I sold my last car I asked them if it's easier for me to just leave it taxed and have them give me the cash to the value of what I would have reclaimed, but they said I needed to reclaim it and they would then retax it.

All I can think is it's a way for them to make a bit more money from it - unless you sell the car on the last day of the month and the next owner buys it the following day the DVLA get paid twice for the switchover month. Once in your original money that can't be reclaimed and once for the new guy retaxing it! I see no other reason for doing it.

There is another reason for doing it -

If you buy a car,/ if it changes hands - it must be MOTd, and insured before you can tax it, this must be done straight away

It may be to prevent forms of fraud, and to stop people running about in uninsured cars that had tax left over from the last owner

And the money in their bank earns them interest not you. Also how many folks will not bother to claim it back cause it's too much hassle.

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On selling a vehicle when DVLA receive the V5C new owners notification they will automatically recredit the previous owners outstanding tax to the next full month (part months will be lost as is the current case).

It can be refunded via the means used to tax the vehicle or credited towards the tax on any replacement vehicle.

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There we go. Some of the points I was overlooking.

Thanks, folks. :)

New car tax guidelines-

https://www.gov.uk/government/news/vehicle-tax-changes

https://uk.finance.yahoo.com/news/death-tax-disc-learn-rules-121928266.html

Another thing to be aware of too, the paper supplementary portion of your drivers Licence will also be discontinued as of January 2015.

On renewal of your licence after bans/10 year renewal/issue of new licence on passing a test you will no longer receive the paper portion as is the current case.

All endorsements will now be solely recorded on a DVLA database which Police/Insurance will have full access to.

The improvement in the DVLA databases and the increased use of ANPR systems negates the need to own/carry the paper portion. (do you know where yours is anyway? ;))

A quick reminder-- Have you checked the renewal date of your driving licence recently?

It is a legal requirement to replace it every 10 years, failure to do so can incur a £1000 fine for driving with an expired licence.

The renewal cost for a licence is also set to fall by up to 32%-

https://www.gov.uk/government/news/driving-licence-fees-to-fall

New car tax guidelines-

https://www.gov.uk/government/news/vehicle-tax-changes

https://uk.finance.yahoo.com/news/death-tax-disc-learn-rules-121928266.html

Another thing to be aware of too, the paper supplementary portion of your drivers Licence will also be discontinued as of January 2015.

On renewal of your licence after bans/10 year renewal/issue of new licence on passing a test you will no longer receive the paper portion as is the current case.

All endorsements will now be solely recorded on a DVLA database which Police/Insurance will have full access to.

The improvement in the DVLA databases and the increased use of ANPR systems negates the need to own/carry the paper portion. (do you know where yours is anyway? ;))

A quick reminder-- Have you checked the renewal date of your driving licence recently?

It is a legal requirement to replace it every 10 years, failure to do so can incur a £1000 fine for driving with an expired licence.

The renewal cost for a licence is also set to fall by up to 32%-

https://www.gov.uk/government/news/driving-licence-fees-to-fall

Yep - safely tucked away in its own little wallet in the kitchen drawer :D

I hadn't heard about scrapping the counterpart though!

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It's in my ammo can slash safe. :P

I've read about that recently. It will be interesting to see how over seas car hire finds it without the paper bit.