Car Tax Explained

Did you know that even if your car tax is £0, you can still get a fine for not applying for it?

What is Car Tax?

Officially known as Vehicle Excise Duty, but more commonly referred to as ‘car tax’ or ‘road tax’, is part and parcel of owning a vehicle.

The amount of car tax you pay depends on how old your vehicle is, the type of fuel it uses, and its CO2 emissions or engine size.

Is it a Legal Requirement?

By law, you must have valid car tax in order to drive on a public road in the UK. However, some exemptions do apply, such as if you are taking your vehicle to a pre-booked MOT test or if you have declared it SORN (Statutory Off Road Notification).

You can apply for a SORN if your vehicle is not being used on public roads, making it exempt from normal tax and insurance requirements. You should bear in mind that a vehicle that is declared SORN must be kept on private land, such as a driveway or garage. You cannot keep a SORN vehicle parked on a public road, even if you do not drive it.

You can claim disability exemption when applying for car tax, but you still have to tax the vehicle in question.  You can find out more about different vehicles that are exempt from paying this tax here.

What Are the Consequences of Not Taxing My Car?

If the DVLA system flags up your vehicle as being untaxed and is not declared SORN, you will be issued a penalty letter and a fine of £80. If you pay this within 33 days, the fine should be reduced to £40. You will not face points to your license. If you fail to pay this penalty, it can be passed onto a debt collection agency, which will end up costing you more.

If you are caught using an untaxed vehicle on a public road without a SORN, you will be issued a court settlement letter and your vehicle may be clamped. You will face a fine of one and a half times whatever your outstanding vehicle tax is, plus an additional £30. If you then fail to pay this, the case may pass through the magistrates’ court, leading to a £1,000 penalty, or the amount of tax chargeable, whichever is higher. Additionally, if your vehicle was clamped, you will see additional fees for clamp release.

If you’re caught driving an untaxed vehicle on a public road which does have a SORN in place, you will face receiving an out of court letter and a fine of twice the level of your outstanding vehicle tax plus an extra £30. If you then fail to pay this, the case may pass through the magistrate’s court, with a maximum penalty at the end of £2,500. Additionally, your vehicle may be clamped and if so, you will also face clamp release fees.

 

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