Car Tax Teething Problems

One of the major changes in motoring over the last few years has been the scrapping of tax discs.

The new system, brought in by the government three years ago, has completely changed how car tax works. Now, a study by the Department for Transport has produced some startling figures about the new system’s impact and we decided to take a look.

The study has found that owners have failed to pay or renew car tax on 1.8% of vehicles, which adds up to more than 700,000 untaxed cars on British roads.

Clearly, this is an issue on a number of levels. Firstly, if people are driving around without a fully taxed car, it means that their insurance is invalid. This could be hugely problematic if any crashes occur.

Secondly, this is a massive amount of revenue that the government is missing out on, with The Guardian claiming that it could amount to up to £107 million in unpaid tax, according to government estimates.

But is this new change in car tax systems to blame for the massive amount of untaxed drivers? And how does it compare to years gone by?

Well, between 2016 and 2017 the DVLA collected £5.67 billion in duty, which is over £200 million less than it collected in 2013-14, the last year before the system changed and tax discs were scrapped.

Many people have chosen to keep their old paper discs displayed, despite the introduction of the new system, often as a handy way to help remember when it needs renewing.

As you may expect, a large number of these untaxed drivers are not doing so intentionally, as they have simply forgotten to renew, however this does not help with the overall problems.

It is vital that you make sure that you are taxed for any and all of your vehicles, and the same goes for insurance. Call our specialist insurance team today on 0121 248 9229.