Why is car tax so important? How do you renew it? What happens if you drive without valid tax? And what does it mean for your breakdown cover?
Here’s everything you need to know about car tax.
What is car tax?
What happens if my car doesn’t have tax?
How do I find out if my car’s tax is due?
Is there a grace period if my car tax expires before I renew it?
How do I renew car tax?
Does my car need to be taxed if I don’t plan to drive it?
Do electric vehicles need to be taxed?
How much does car tax cost?
Are any vehicles exempt from having tax?
Other useful road tax and car maintenance articles
What is car tax?
Car tax – also known as Vehicle Excise Duty (VED) or road tax – is a mandatory fee for using or parking your car on public roads.
Paid every 6 or 12 months, the money goes into a central Government fund for road maintenance and other projects.
What happens if my car doesn’t have tax?
If a car is not taxed it can’t be driven or parked on a public road. Driving a car without tax results in a fine (ranging from £40 to £1,000), potential court prosecution, and the immediate clamping, towing, or impounding of the vehicle. So, nothing particularly fun.
Driving without car tax also renders your breakdown cover invalid with most companies and may also affect your car’s insurance policy.
How do I find out if my car’s tax is due?
You can see when your car tax is due for renewal is by visiting the Government’s online car tax enquiry service.
The DVLA will also send a reminder around a month before your current tax expires. If you pay by Direct Debit, your car’s tax renews automatically so you may not receive a reminder. Details of your car’s tax can also be found on the car’s logbook.
Worried about your car’s tax expiring? You can get handy road tax reminders through the Green Flag app if you have breakdown cover with us.
Is there a grace period if my car tax expires before I renew it?
No, there is no grace period for car tax in the UK. Because it’s managed online, all cars must be taxed before being driven on public roads.
And don’t think you can get away with not having it. The police can use automatic number plate recognition cameras to spot any vehicles that are breaking the rules.
How do I renew car tax?
To tax your car, you’ll need the 11-digit vehicle reference number that’s in your car’s logbook, on the reminder from the DVLA, or on the green ‘new keeper’ slip if you’ve recently bought the car.
If you don’t have any of these documents, you’ll need to apply for a new logbook. You can tax your car at the same time.
You can tax your car online, by phone, or at a Post Office. You can only set up a Direct Debit online or in person. Head to the Government’s website to tax your car or find out more.
In some cases, you may be exempt from paying car tax, but you do still need to sort the tax out. Find out more about exemptions.
You’ll need a valid MOT in order to tax your car. But it can take a few days for MOT information to be processed. So, if you’ve just had your MOT, you may need to wait a little bit before getting your tax sorted.
Once you’ve sorted your car’s tax, you’ll receive a receipt or confirmation email.
Does my car need to be taxed if I don’t plan to drive it?
No, your car doesn’t need to be taxed if you’re not going to drive it, but you’ll need to register it as SORN (Statutory Off-Road Notification) with the DVLA.
A SORN vehicle must be kept on private land, such as a driveway or in a garage. Make sure you don’t use (or even park) a SORN vehicle on a public road, as you could end up with a £2,500 fine.
Register your car as off the road here
Do electric vehicles need to be taxed?
Yes, electric vehicles need to be taxed.
Tax for EVs in their first year of being registered costs £10, then rises to the standard rate of £195 from the second year (if your car is valued below £40,000). EVs registered before April 2017 pay a reduced rate of £20 per year.
How much does car tax cost?
It varies depending on the age and type of your car, whether you pay Direct Debit, and if you get the 6 or 12 month option. In most cases, the cost of renewing your car tax is around £195.
For the full details of prices and payment methods, check out car tax rates on the Government website.
Are any vehicles exempt from having tax?
Yes, some vehicles are not required to have car tax. They are:
- Specialised vehicles powered by steam, mowing machines, and some military vehicles.
- Tractors and other off-road agricultural vehicles.
- Some historic ‘vintage’ or ‘classic’ vehicles built before 1985 that haven’t undergone substantial changes (like a new chassis, body, axis or engine that’s changed the way the vehicle works).
- Disabled driver or passenger vehicles used by those receiving specific enhanced rate disability benefits.
If you believe your vehicle is exempt, you’ll need to submit a car tax exemption form (V112) on the Government website.
