From October 1, paper tax discs on cars will become obsolete and will be replaced with an electronic register. Motorists will be required to pay for their vehicle excise duty (VED) by direct debit.
Payments can be made monthly, six-monthly or annually – both at an overall additional annual cost of 5%.
Vehicle tax will no longer be transferred, so new owners will need to buy new vehicle tax before driving their purchase. Sellers should notify the DVLA of any change of ownership straight away or face a £1,000 fine.
They will receive an automatic refund to their bank account for any full calendar months left on the vehicle tax, once the DVLA has notification that the person the vehicle is registered to has sold it.