On the 1st October the paper tax disc is being scrapped and replaced with a new electronic system. This means that motor traders will need to physically remove tax discs from the vehicles in their care as well as adapt to a number of other changes. We have previously talked about the relationship strain between the DVLA and motor trades however that relationship is now about to change, find out more…
What are the new road tax rules for motor traders?
As of October motor traders will no longer be able to buy a vehicle with a valid tax disc as tax will no longer be transferred when changing ownership of a vehicle. However, motor traders will still be able to get trade plates as long they keep within the rules and regulations. Otherwise, the vehicle should be registered under the name of the trader so that you can apply for road tax.
Is there any change for motor traders when notifying a sale?
Traders will not need to register an ownership transfer but the registered owner will be required to notify the DVLA of the sale.
There will be no need for motor traders to physically show a trade licence but they will still be required to pay and apply for trade licenses when they are due. The paper licence, like the paper tax disc, will no longer be issued as it will all be carried out electronically. Trade plate display and conditions will stay the same for motor traders.
What if you fail to inform the DVLA of a sale?
The senior consumer services manager at hpicheck.com, Shane Teskey, said: “Sellers who fail to inform the DVLA could be fined and they will still be liable for any speeding or parking fines and vehicle tax for a car they don’t even own any more. We remind sellers to always send the V5C to the DVLA, rather than relying on the buyer to do it. And if they scrap a vehicle, they should get a Certificate of Destruction from an authorised treatment facility.”
Refunds on tax when selling your car
After the sale of a vehicle you will receive a refund directly from the DVLA for the time left on the tax. The refund will be processed once the DVLA have been notified of the change on the V5C (Vehicle Registration Certificate). The same will happen if a new owner declares the vehicle as Statutory off Road Notification (SORN). The refund will be given for the full months that remain and not for partial months and the money left for the rest of the partial month shall be lost.
How can I pay?
When purchasing a new car motor traders will need to pay the road tax as soon as they start to drive it. There will be no grace period when buying a new car as you can phone the DVLA 24/7 to buy your tax or order it online.
If the vehicles are registered to the motor business then how will refunds be issues to the motor traders?
The refunds for tax discs will still be made to the business registered with the DVLA. The motor trade business will receive their refund once the DVLA has been notified of a change on the Vehicle Registration Certificate (V5C).
What if the tax disc is lost?
You will still need a tax disc displayed up until the 30th September so you will need to apply for another paper tax disc.
What do motor traders need to do when selling a vehicle?
The DVLA must be notified that a sale or transfer has been made, after which a refund for any full months’ worth of tax will be made.
What if the refund is paid to the wrong person?
The refund will only be paid to the person who is on the DVLA vehicle register. When the vehicle is sold, the refund will be processed once the DVLA receives notification.