A Vehicle Excise Duty (VED) generally called Road Tax is one of the most important cost aspects associated with car owners. If you were unable to pay the tax, the UK police will subjugate your vehicle under a cease-and-desist policy. On the bright side, you can cancel road tax in some reasonable scenarios & get a fair road tax refund from the Driver & Vehicle Licensing Agency (DVLA)
The road tax can be paid in equated annual or monthly instalments depending on your convenience. Although you cannot get a road tax refund if you’ve already paid, the next tax debit instalment can be cancelled if you drop your vehicle ownership. Another scenario would be if you’ve paid in a lump sum, you can get a road tax refund on equal adequate proportions otherwise called a pro-rata basis.
It’s important to understand that any remaining tax will never be going to transfer to the new owner of the vehicle. It’s the new vehicle owner’s responsibility to re-tax the vehicle after owning it. If you are a new vehicle owner, here’s how you can check if your vehicle is taxed or not. It’s always best to inform DVLA after gaining new ownership of your vehicle. If not done, a fine of around £1,000 might be inflected upon by the original vehicle owner.
Why Cancel Road Tax?
Following are a few legal scenarios in which you can cancel road tax.
- If you’ve transferred your ownership of your vehicle to a dealership or a new owner.
- If your vehicle has failed to comply with the insurance company standards.
- If the vehicle is exported overseas.
- If the vehicle has been scrapped
- If the vehicle has been stolen
- If the vehicle is exempt i.e., an out of age, out of order policy under pollution control.
- If the vehicle is held for Statuary Off Road Notification (SORN)
How to Cancel Road Tax?
Before you consider cancelling road tax, you need to have your vehicle’s logbook under a pink sheet which is generally called (V5C). A V5C is proof of the registered owner of the car without which you can’t cancel road tax. In case you lost your V5C, you can request the DVLA to issue a replacement logbook for a bare minimum of £25.
One of the quick & easy ways to cancel road tax is by going online through the DVLA website where you can inform the agency about your vehicle status & also stay updated about the instructions on how to cancel road tax payments if your car complies with DVLA’s refund policy.
The next debit instalments can be directly cancelled by DVLA without dealing with time-consuming & unnecessary bank visits.
Another way is to post applications to these agencies:
- Refund Section
- SA99 1AL
Note: You can also return your refund check to the above addresses if you find any flaw in your correspondence information.
Getting Road Tax Refunds
After getting a green flag from DVLA, your tax will be refunded via a courier check. So, it’s suggested to update your home address, as the courier address is assigned to your vehicle logbook. The road tax refund time should be processed anywhere between 3-6 weeks. Please note that the other amount such as the credit card charges, interest incurred by monthly instalments will be excluded from the actual refund rate.