April 22, 2015

Don’t Let your Car be Auctioned: Make Sure It’s still Taxed

Don’t Let your Car be Auctioned: Make Sure It’s still Taxed Header Image

The DVLA’s new car tax system that was rolled out in October last year has seen thousands of drivers have their cars clamped and towed away. Think your car has valid tax? They did too.

Many drivers are still unaware of the ins and outs of the new system. It’s much more than just getting rid of the tax disc from your windshield. To wrap your head around it, check out this article.

The new system has already received a lot of negative publicity after being labelled by many as just another money making scheme.

Although the remaining tax paid by a seller is refunded by the DVLA, they still need to pay the full month’s fee when the car is sold. The buyer also has to pay for the full month in which the car was bought.

So if a car is sold mid-April, both the buyer and seller would have to pay car tax for the whole month of April, this effectively doubles the DVLA’s income for that month.

An issue that thousands of drivers are now facing is that they are unaware that tax does not carry over to a new owner when a second hand car is bought. So when a car is advertised with 6 months tax, it won’t actually carry over.

Instead, you’ll have to pay for tax from the month you buy the car.

It is designed to make taxing your car easier. However, thousands of drivers have unfairly had to pay fines and fees because of it, sometimes upwards of £800.

Drivers being Unfairly Penalised

Ms Hazell used the new system’s direct debit payment function, but was fined £60 because she didn’t have any paper proof that she had paid it. After providing a bank statement that clearly showed her payments, the DVLA refunded her money.

Mr Hallam paid for his car tax in full. Unfortunately the tax did not go through. Without the warning of a tax disc not arriving, he had no idea anything was wrong, until he saw his car being clamped.

Mr Anderson bought a used car and had to return it within hours because it broke down. The DVLA refused to give him a refund on his year-long tax unless he paid a £25 fee to have his name registered and then instantly deregistered on the car.

Days away from Needing to Buy a New Car

Mr Webb and his wife each had their own car, as many couples do. Unfortunately they were completely oblivious of the new car tax system.

When they decided to switch cars, 6 months ago, they wrote to the DVLA informing them that they had switched ownership.

Each car had a full year’s ‘valid’ tax disc displayed on the windshield, but they were unaware that it meant absolutely nothing.

Mr Webb received a notice from the DVLA informing him that his car was not properly taxed. But it was too late, his car had already been towed.

In total he had to pay £882 just to reclaim his car. Had he waited just one more day, he was told, his car would have been sold off at an auction.

As if that wasn’t enough, he later received a letter from the DVLA demanding an additional £165 out-of-court settlement. This was because his wife’s car was being kept in her drive, before it could be re-taxed, but didn’t have a Statutory Off Road Notification.

Are You at Risk of being Clamped and Towed?

There has already been an increase of 60% in the number of UK cars that have been towed. Thousands of drivers are at risk of being victimised by the new tax system, without even being aware that they’re at risk.

It’s estimated that as a result, upwards of 100,000 motorists are likely to have their car clamped this year. This is a massive jump compared to the 60,000 last year. This will put thousands of drivers out of pocket without them understanding why.

Some drivers are claiming that the new system is a money-making scheme for the DVLA. Others feel that the DVLA just need to make more of an effort to make drivers aware of how the new system works.

Whatever you believe, we urge you to click on the image below to find out whether your tax is valid.