They say that buying a car is the cheapest part - and this is often correct. When buying a car there are many other cost factors to consider, and how much road tax you will have to pay each year is an important one. In this article we explain how road tax works, and how much you can expect to pay today.
The tax you pay to keep your vehicle on the road each year has many names. Officially it is VED, or Vehicle Excise Duty. However in the day to day this phrase is rarely used. You also may hear it referred to as 'road tax', 'vehicle tax', or 'car tax'.
Vehicle Excise Duty is paid to the Driver and Licensing Agency, also known as the DVLA. The DVLA is a government organisation charged with keeping a database of all registered vehicles and registered drivers in the UK. They are an agency of the Department of Transport, and are based in Swansea. While they hold the responsibility for driver and vehicle details, they do not endorse penalty points on driver licenses, this is a matter for the police.
If you wish to drive or park your car on a public road you must make sure you display a current Vehicle Excise Duty disc in the windscreen at all times. This not only proves that you have paid your tax but also that you had a valid MOT and insurance at the time (and hopefully still do!). A registered car owner who has not paid tax is flagged up on the DVLA computer system. Technology in this field is so advanced now it is quite easy for the DVLA to track down those avoiding their car tax responsibilities. Failure to pay car tax will result in a fine of up to £1000, and in extreme cases such as repeat offenders, you may be prosecuted.
If you have a vehicle but do not wish to drive or park it on the road for a period of time you will need to make a Statutory Off Road Notification, or SORN for short. If a registered vehicle's tax runs out and you do not supply a SORN to the DVLA they will assume that you are still using the vehicle but not paying tax, and it is very likely that a fine will be issued. By declaring your vehicle off the road via a SORN notice you are telling the DVLA that you will not be using the vehicle and therefore no tax is due. A SORN needs to be renewed every 12 months unless the vehicle is re-taxed.
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