Drivers across the country may be wasting their cash on a vehicle they no longer use. By law, all cars that are used on the road must be subjected to vehicle tax (otherwise known as road tax). in order to be driven.
However, if you no longer use a vehicle you can avoid paying tax on it. And better yet, you can get a refund on any tax due for the remaining months.
Motorists should keep in mind though that you can’t simply stop paying road tax when a vehicle is no longer in use. Instead, it must be declared with a Statutory Off Road Notification (SORN) which will tell the DVLA that the car is no longer being driven on the road.
The DVLA highlights that cancelling your vehicle tax will result in a refund “for any full months of remaining tax”, therefore, if you have six full months of tax left on the vehicle, you would get all that money back, potentially resulting in thousands of pounds back depending on the vehicle – current road tax rates can be found on GOV.UK here.
How to get a refund on your vehicle tax
In order to cancel your vehicle tax, you must first contact the DVLA. There are a number of reasons your vehicle tax can be cancelled, including if the vehicle meets one of the following:
- Sold or transferred to someone else
- Taken off the road, for example you’re keeping it in a garage – this is called a Statutory Off Road Notification (SORN)
- Scrapped at a vehicle scrapyard
- Registered as exempt from vehicle tax
- Exported out of the UK
- Written off by your insurance company
You can also receive a refund on tax if the vehicle was stolen, however, you will need to apply for a refund separately. If you pay your tax through Direct Debit, it will be cancelled as a result.
Furthermore, you will receive a refund cheque for any full months left on the tax. This is calculated by the DVLA, with the cheque being sent to the name and address on the vehicle;s logbook (V5C).
You will only not receive a refund for any credit card fees, the 5% surcharge on some direct debit payments, and the 10% surchage on a single six month payment. You can register a vehicle as SORN through GOV.UK here. For any other reason you want to cancel your vehicle tax, you can contact the DVLA here.