Bring back the tax disc

Bring Back the Tax Disc

A poll has revealed that the majority of motorists want the tax disc to return!

Study

The research, conducted by Motoring.co.uk, discovered that 81% of drivers want it back because they are forgetting to tax their vehicles on time. A previous study by the same company showed 1 million motorists are driving around without valid vehicle excise duty (VED) - the official name for the annual tax we habitually call road tax.

Cost cutting

Removing the tax disc was, as the DVLA stated, part of a cost cutting exercise to reduce tax administration costs and burdens associated with vehicle tax. However, it seems that the DVLA may have miscalculated and could now be missing out on more revenue than ever before.

Figures

The DVLA stands to save around £7 million per annum from no longer producing, issuing and posting the tax disc, but those figures looked to be skewed as the research revealed that the DVLA could be losing out on around £170m of revenue per year - with average VED costing £170 - far more than the saving accrued from the tax disc abolishment.

The DVLA refuted the results of the poll, with a spokesperson stating: “The vast majority of people tax their cars on time, with over 42 and a half million drivers taxing their vehicles since 1 October 2014“.

They continued: “We believe that the digital system is working well and that more than 29 million have chosen to tax their vehicles online or by phone. When vehicles are due to be taxed, we still send reminders, we send V11 reminders to all motorists except those who have chosen to pay by Direct Debit - they would receive a Direct Debit reminder. If motorists are driving without valid tax then they could be fined up to £1,000 and face having their vehicle impounded so it is paramount for them to make sure their vehicle is taxed on time.”

Concern

However, the DfT has since admitted that the number of vehicles without road tax - Vehicle Excise Duty (VED) – has doubled to 560,000 in the summer of 2015, according to the Department for Transport's survey.

Motoring.co.uk chief, Terry Hogan, said, “With the lack of a physical tax disc, it seems large numbers of motorists are failing to renew their car tax -driving illegally and are liable to fines.

"We understand that the every-day motorist struggles to keep on top of their ownership lifecycle."