How To Cancel Your Car Tax With DVLA

How To Cancel Your Car Tax With DVLA
So, you’ve found yourself in a situation where you need to cancel your car tax with the DVLA. Don’t worry, it’s easier than you may think. In this article, we will guide you through the simple and straightforward process of cancelling your car tax with the DVLA. Whether you’ve sold your car, it’s been stolen, or you’ve declared it off the road, we’ve got you covered. So, let’s get started and make cancelling your car tax a breeze!

Before You Cancel Your Car Tax

Before you cancel your car tax with DVLA, there are a few important steps to take. First, you need to check if you’re eligible for a refund. This usually applies if you no longer own the vehicle, have declared it off the road (SORN), exported it, or if it has been scrapped, written off, stolen, or destroyed. Next, you should prepare the necessary documents. These include the V5C registration certificate, V14 form, insurance details, MOT certificate, and SORN documentation. Finally, before cancelling your car tax, it’s crucial to notify your insurance company about the change in status of your vehicle.

Methods of Cancelling Car Tax

Cancelling car tax in the UK involves a few specific methods. Here’s how you can do it:

  1. Automatically When You Sell Your Vehicle: When you sell your vehicle, the car tax is automatically cancelled when you inform the DVLA (Driver and Vehicle Licensing Agency) of the sale. This is typically done by updating the V5C registration document. The DVLA will then automatically refund any full months of remaining tax to the person named on the vehicle log book.
  2. Declaring a Statutory Off Road Notification (SORN): If you no longer use or keep your vehicle on a public road, you can declare it off the road with a SORN. This effectively cancels the car tax. You can make a SORN online, over the phone, or by post. Once a SORN is in place, you don’t need to tax the vehicle until you put it back on the road.
  3. If the Vehicle is Scrapped or Exported: If you scrap the vehicle or export it permanently out of the UK, you need to inform the DVLA. This will cancel the car tax. If you’re exporting the vehicle, you should notify the DVLA before it is shipped.
  4. If the Vehicle Owner Dies: The car tax is automatically cancelled if the vehicle owner dies. The DVLA should be informed as part of managing the deceased’s estate.
  5. Vehicle Tax Refunds: When your vehicle tax is cancelled (e.g., due to sale, SORN, scrapping, or exporting), the DVLA will automatically issue a refund for any full months of tax left. This refund is sent to the person named on the vehicle log book.
  6. Change of Vehicle Tax Class: If your vehicle changes tax class, for instance, becoming exempt from tax due to being classified as a disabled vehicle, you will need to tax it in the new tax class. This process will involve cancelling the current vehicle tax and then retaxing it.
  7. Online, Phone, or Post: Most of these processes can be initiated online through the DVLA’s website. Some can also be done over the phone or by post.

Calculating Car Tax Refund

when you cancel your car tax (Vehicle Excise Duty or VED), the refund you receive is calculated based on full months remaining on your tax. The refund will be calculated starting from the date that the DVLA receives your information. Here’s how the process works:

  1. Refund Calculation: The refund is based on any full calendar months left on the vehicle tax. For example, if you cancel your car tax with 5 months and 15 days remaining, you will be refunded for 5 full months.
  2. Partial Months: The DVLA does not refund for any part of a month. So, if you cancel your car tax in the middle of a month, that month will not be included in your refund.
  3. Direct Debit Cancellations: If you pay your car tax by Direct Debit, the Direct Debit will be automatically cancelled when you notify the DVLA that your vehicle has been sold, transferred, taken off the road (SORN), scrapped, or exported. However, if the Direct Debit payment was recently taken and there are full months left on your vehicle tax, those months will be refunded.
  4. Refund Process: When your vehicle tax is cancelled, the DVLA automatically issues a refund cheque for any full months remaining. This cheque is sent to the name and address on the vehicle’s log book (V5C), so it’s important to ensure these details are up to date.
  5. Deductions: In some cases, there might be deductions from the refund. For instance, if there is a surcharge on the vehicle tax for paying in instalments or for a late payment, this surcharge is not refunded.
  6. Timeframe for Receiving Refund: The refund cheque is usually sent within 4 to 6 weeks of the DVLA receiving the information that the vehicle tax is being cancelled.

Reapplying for Car Tax

If you need to reapply for car tax after cancelling it, there are a few situations to consider. If you have purchased a new vehicle, you will need to tax it separately and cannot transfer the tax from your previous vehicle. However, if you have sold your old vehicle and purchased a new one within the same tax group, you can transfer the car tax to the new vehicle. Additionally, if you have previously declared your vehicle off the road (SORN) but now wish to use it again, you will need to remove the SORN declaration and apply for car tax accordingly.

Contacting DVLA for Assistance

If you require assistance or have any questions regarding cancelling car tax, the DVLA offers several channels of communication. The DVLA helpline is available to provide guidance and answer any queries you may have. Additionally, you can contact the DVLA through written correspondence, such as sending a letter or filling out an online contact form. Finally, for those who prefer digital communication, the DVLA also maintains active social media channels where you can reach out for support or advice.

Posted in Personal tax and tagged , , , .