Traditional paper tax discs to be replaced by electronic system; plus fuel duty is frozen for another year
5 December 2013

Car tax discs will be axed from next year.

Chancellor George Osborne made the announcement in his Autumn Statement today, revealing that the traditional paper car tax discs will be retired from October 2014, and replaced with an electronic system.

The new system will allow motorists to pay their car tax by monthly direct debit.

Having been in service since 1921, paper tax discs are increasingly becoming outdated, with both the police and the DVLA relying on electronic means instead. Reports suggest the move could save businesses up to £7 million in administrative costs.

The Treasury said the plan showed the government was moving "into the modern age".

The Chancellor also announced that fuel duty tax will be frozen for another year. He said the cancelling of fuel duty rises had been a "major priority" for the government. Fuel duty was originally set to rise by up to 2p per litre in January.

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Comments
18

5 December 2013
This is daft. The new system will save a small amount of money, but far more could be saved by simply adding the revenue collected to the cost of fuel. It would be a truly 'green' tax as you would pay for what you use, so it would be fairer too. And not paying wouldnt be an option unless you run your car on chip fat.

5 December 2013
[quote=artill]This is daft. The new system will save a small amount of money, but far more could be saved by simply adding the revenue collected to the cost of fuel. It would be a truly 'green' tax as you would pay for what you use, so it would be fairer too. And not paying wouldnt be an option unless you run your car on chip fat.[/quote] Totally agree. Cynically, it smacks of another electioneering measure, rather than doing something which would actually be effective.

5 December 2013
I wonder if now that ANPR systems will be more heavily relied upon, whether the amount of number plate thefts will increase. It was easy to cross check number plate against tax disc but no more so.

5 December 2013
At last! All tax for cars should be collected at one point. Either by fuel or by car insurance. If your only paying one oranisation for it there should be an overall reduction in what you pay.

5 December 2013
To have the tax applied elsewhere I agree. But within the confines of the current system I do like this idea. No more messing around with paper. Maybe no more visiting the Post Office. Monthly DD is a nice touch. Personally I'd rather pay a tenner a month than fork out every year.

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5 December 2013
I like the idea of having the option to spread the cost by monthly Direct Debit ... But NOT the 5% surcharge!! ... Mind you, it's not as bad as the whopping almost 30% surcharge for paying for car insurance by monthly instalments ...

5 December 2013
Love the idea of a monthly DD. Assuming they don't charge a whopping interest rate - see current difference between 6 month and 12 month disc for example (the difference is probably due to admin costs rather than interest admittedly). I often tax for 6 months if I know I'm selling the car before then. Road Tax onto fuel would penalise the heavier gas guzzlers I guess, but would also penalise higher mileage drivers who have no choice (say you stay in the country and commute, or drive long distances for your work). To me that's not 100% fair either, but I can't imagine any system where that would be the case anyway.

5 December 2013
Not sure how direct debit payments would work when a car is sold? Will the new owner take over the remaining payments or does the existing owner have to keep paying? It could easily take 7 million for the DVLA to resolve!

5 December 2013
Without the fairer system of 'road tax' on fuel then paying by DD is the next best thing I guess. Putting the tax (another tax) on fuel covers all bases; if you're a gas guzzler you pay more, if you're high miles you pay as you're using the road network more - adding to wear & tear. Also, you instantly remove the loss of untaxed vehicle revenue from the coffers which is a bigger problem than some high-milers shelling out a bit more. Conference call!! It should at least help untaxed, and subsequently, uninsured figures a little if you're able pay bit by bit. However, complete removal of a tax disc means traffic plod (remember them?) has one less tool at their disposal for collaring scrotes.


5 December 2013
That is pay monthly with I think 6 months upfront, the minimum you can do at the moment and then annual cost divided by 12 with no interest payment.

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