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Cancelling Car Tax

Annie1612
Annie1612 Posts: 136 Forumite
Fourth Anniversary 100 Posts Name Dropper
Hi

It’s been a long time since I last changed my car (2008!) and cannot remember what I am supposed to do next re: car tax. I traded in my old car for new. The dealer has set up the direct debit for paying the tax on the new car, but not sure what to do next to cancel tax on the old car. I pay by monthly direct debit. Will the dealer send a V5C in to the DVLA or will I have to inform them? Will the DVLA write to confirm the tax is cancelled?

Thank you

Comments

  • jimjames
    jimjames Posts: 18,052 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Personally I cancel the DD once I've sold the car and DVLA then won't be able to claim it in the following month even if the V5C hasn't been processed in time. You will receive a letter from DVLA to let you know you are no longer responsible for the car which also confirms the tax is cancelled.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Annie1612
    Annie1612 Posts: 136 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    jimjames said:
    Personally I cancel the DD once I've sold the car and DVLA then won't be able to claim it in the following month even if the V5C hasn't been processed in time. You will receive a letter from DVLA to let you know you are no longer responsible for the car which also confirms the tax is cancelled.
    Thank you for this Jim 🙏
  • born_again
    born_again Posts: 17,413 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Annie1612 said:
    Hi

    It’s been a long time since I last changed my car (2008!) and cannot remember what I am supposed to do next re: car tax. I traded in my old car for new. The dealer has set up the direct debit for paying the tax on the new car, but not sure what to do next to cancel tax on the old car. I pay by monthly direct debit. Will the dealer send a V5C in to the DVLA or will I have to inform them? Will the DVLA write to confirm the tax is cancelled?

    Thank you
    Dealer should do change of owner online, while you are there. Give them your email & you will receive confirmation of change of owner, which will also cancel VED & issue a refund if applicable.

    If not do it yourself when you get home. No chance of any stray fines then.
    Life in the slow lane
  • Mildly_Miffed
    Mildly_Miffed Posts: 836 Forumite
    500 Posts Third Anniversary Name Dropper
    The dealer may do it, but it's your legal responsibility.

    It takes seconds online, and you get an email instantly.
    https://www.gov.uk/sold-bought-vehicle

    The cheque for the tax refund comes through fairly quickly, couple of days usually.
  • Bigphil1474
    Bigphil1474 Posts: 2,934 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    *no refund if you pay monthly by DD.

    OP, as someone said above, the dealer can do it for you , but worth double checking. Be careful cancelling any DD as the new one may have replaced the old one anyway. Last time I changed my car, through a dealer,  it went smoothly with the road tax element. 
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