By Ben Scott
Marketing Manager
From October 1st 2014 the DVLA will enforce huge changes to how vehicle road tax is issued and controlled. The paper Tax Disc (VED) will become obsolete, and vehicle tax will no longer be transferrable between owners; checks for valid tax will now be automated via surveillance and databases. This means every time that you purchase a vehicle (even for the purposes of resale as stock) you will need to arrange your own Road Tax, alternatively declare the vehicle as SORN.
It sounds bad; we know.
For Motor Traders, you can opt for Trade Plates. One feature of Trade Plates allows the registered holder to drive untaxed vehicles, provided that it’s in line with their motor trade occupation(s). You will still require separate tax for personal vehicles. In order to hold Trade Plates, you will require a Trade Licence; for more information check here: gov.uk
You are required to pay for a Trade Licence, but the cost is very reasonable for the flexibility that it provides to a legitimate motor trader. Trade Licences run for 6 to 12 months, similar to the old Road Tax; it will always be due for renewal at the end of either June or December. The cost from September 2014 until June 2015 is currently advertised by the DVLA at just £151.25.
“A motor trader: may use the trade licence on mechanically propelled vehicles only if they are temporarily in their possession in the course of their business.”
On paper, obtaining tax seems the more expensive route; the owner of a vehicle will need to have tax in place to drive the vehicle, or to keep it on a public road. Furthermore, should you sell a vehicle and fail to inform the DVLA that you no longer hold it in your possession; not only could you be fined, but you will also remain liable for the vehicle tax. We recommend that our Motor Traders always submit the V5C to the DVLA themselves rather than relying on a buyer to do it, and always ensure a Certificate of Destruction is obtained from an ATF if a vehicle you own is scrapped.
A new online system is in place where you can purchase Road Tax including Direct Debit payment options, or you may still visit a local Post Office branch should you prefer/if it’s more practical. You will automatically receive a refund for any full calendar months left on your vehicle tax once the DVLA are notified that the vehicle has been sold, transferred, scrapped, exported, SORN or had it’s tax class changed to an exempt status.
Sources:
- Vehicle Enquiry Service
- Vehicle Tax Changes
- Tax Disc Direct Portal