NEWS: 23 JULY 2015
THE RISE OF CAR TAX FINES
New strict and confusing rules have lead to car tax fines soaring and prosecutions showing a staggering rise of 50%, so it's not a surprise that motorists are not happy about it.
The new rules require tax to be renewed each time a vehicle is bought, and has led to tens of thousands of motorists being criminalised with the offence of driving an untaxed vehicle on the road, simply due to forgetting to pay for their licence online.
This new change in rules means that when a car is purchased, the new owner must apply instantly for new road tax. This is opposed to the previous rule which stated that someone buying a car with a valid disc could continue driving it until the tax on the car needed to be renewed – were you aware of this change?
It looks as though a large amount of people are not. A poll conducted by Auto Express showed 1 in 6 readers were still not aware of the road tax changes, with the main area of confusion being that tax is not transferable during a sale. As a provider trade finance, this is something we will be keeping a close eye on, in addition to reminding our clients of the apparent pitfalls of this new system.
Separate figures released from the Driver and Vehicle Licencing Agency (DVLA) revealed that there were a staggering 117,490 prosecutions between October 2014 and March 2015, in comparison to just 82,999 in the previous sixth month period.
So, what happens if you fail to comply with these new rules? Initially, you will be issued with a penalty notice, however if that is ignored or not dealt with satisfactorily, the DVLA takes the case to court.
The aim of scrapping the tax disc was designed to cut costs and paperwork, and save £10million – however, is this saving worth it if so many people are being unfairly criminalised?
AA President Edmund Kind stated that “it is a very harsh lesson for those who may not be aware a tax disc is now automatically cancelled when a vehicle changes keepership.”
To find out more on the new tax rules, and how they can affect you, click here.
The new rules require tax to be renewed each time a vehicle is bought, and has led to tens of thousands of motorists being criminalised with the offence of driving an untaxed vehicle on the road, simply due to forgetting to pay for their licence online.
This new change in rules means that when a car is purchased, the new owner must apply instantly for new road tax. This is opposed to the previous rule which stated that someone buying a car with a valid disc could continue driving it until the tax on the car needed to be renewed – were you aware of this change?
It looks as though a large amount of people are not. A poll conducted by Auto Express showed 1 in 6 readers were still not aware of the road tax changes, with the main area of confusion being that tax is not transferable during a sale. As a provider trade finance, this is something we will be keeping a close eye on, in addition to reminding our clients of the apparent pitfalls of this new system.
Separate figures released from the Driver and Vehicle Licencing Agency (DVLA) revealed that there were a staggering 117,490 prosecutions between October 2014 and March 2015, in comparison to just 82,999 in the previous sixth month period.
So, what happens if you fail to comply with these new rules? Initially, you will be issued with a penalty notice, however if that is ignored or not dealt with satisfactorily, the DVLA takes the case to court.
The aim of scrapping the tax disc was designed to cut costs and paperwork, and save £10million – however, is this saving worth it if so many people are being unfairly criminalised?
AA President Edmund Kind stated that “it is a very harsh lesson for those who may not be aware a tax disc is now automatically cancelled when a vehicle changes keepership.”
To find out more on the new tax rules, and how they can affect you, click here.
