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Paper car tax disc to be axed to increase savings

By: Kasia Baldwin
06 December 2013

Cutting tax disc administration costsFor 93 years motorists have had to display a tax disc within their vehicle to prove they had paid vehicle excise duty.


From 1st October 2014 all this will change as the paper tax disc will cease to exist and checks will now be done electronically. The police will simply access DVLA records through the police national computer.


Direct debit payment options are being introduced so motorists can spread the cost over the year, providing motorists with the ability to pay their vehicle tax annually, biannually or even monthly. There will be a small 5% surcharge of the tax for the biannual and monthly payment options. This is half of the 10% surcharge that is currently applied to 6 monthly tax discs.


So by getting rid of the paperwork and associated administration involved in the paper tax disc, the government is hoping to save money which can then be passed onto motorists. Fleet operators and other businesses that usually have to handle the administration of tax discs will also make savings from this change.


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