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How to Cancel Car Tax

What is Car Tax?

Car tax, also known as road tax, is a tax that is levied on motor vehicles in order to use them on public roads. The amount of car tax that is payable varies depending on the type of vehicle, its engine size, and the state or country in which it is registered.


In India, car tax is levied by the state governments. The rates of car tax vary from state to state, but they are generally based on the engine size of the vehicle. For example, in the state of Maharashtra, the car tax for a car with an engine size of up to 1000cc is ₹2,500 per year, while the car tax for a car with an engine size of over 2000cc is ₹50,000 per year.


Car tax is payable annually, and it is usually due on the anniversary of the date of registration of the vehicle. In order to pay car tax, you will need to visit the website of the state government in which your vehicle is registered, or you can pay it in person at a designated tax office.

If you do not pay car tax, you may be liable to pay a penalty. The penalty for non-payment of car tax also varies from state to state, but it is typically ₹500 per month, or a percentage of the outstanding tax.

Here are some of the benefits of paying car tax:

  • It helps to fund the construction and maintenance of roads.

  • It helps to reduce traffic congestion.

  • It helps to improve air quality.

  • It helps to make the roads safer for everyone.


How to Cancel Car Tax UK?

To cancel your car tax in the UK, you must tell the Driver and Vehicle Licensing Agency (DVLA) that you have:

  • Sold your vehicle

  • Taken your vehicle off the road

  • Written off your vehicle by your insurance company

  • Scrapped your vehicle at a vehicle scrapyard

  • Stolen your vehicle

  • Exported your vehicle out of the UK

  • Registered your vehicle as exempt from vehicle tax

You can tell the DVLA about these changes online, by phone, or by post.

To cancel your car tax online, you will need to:

  1. Go to the DVLA website: https://www.gov.uk/vehicle-tax.

  2. Click on the "Cancel your vehicle tax" link.

  3. Enter your vehicle registration number and your V5C registration certificate number.

  4. Click on the "Continue" button.

  5. Follow the instructions to cancel your car tax.

To cancel your car tax by phone, you will need to:

  1. Call the DVLA on 0300 790 6800.

  2. Select option 1 for "Vehicle tax".

  3. Select option 2 for "Cancel your vehicle tax".

  4. Provide the DVLA with your vehicle registration number and your V5C registration certificate number.

  5. Follow the instructions to cancel your car tax.

To cancel your car tax by post, you will need to:

  1. Download and complete the Application to cancel vehicle tax form: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/845575/application-to-change-vehicle-tax-v70.pdf.

  2. Send the form to the following address:

DVLA, Swansea, SA99 1BF

Once you have told the DVLA about the change, they will cancel your car tax and refund you any unused tax. The refund will be paid to the name and address on your vehicle log book.


How can I reduce my car tax UK?


There are a few ways to reduce your car tax in the UK. Here are some of them:

  • Choose a low-emission vehicle. The amount of car tax you pay is based on the CO2 emissions of your vehicle. So, if you choose a low-emission vehicle, you will pay less car tax.

  • Claim disability exemption. If you are a disabled person who uses a vehicle for mobility reasons, you may be eligible for a disability exemption from car tax.

  • Register your vehicle as historic. If your vehicle is over 40 years old, you may be able to register it as historic and pay a reduced rate of car tax.

  • Take your vehicle off the road. If you are not using your vehicle for a period of time, you can take it off the road and pay no car tax. To do this, you will need to apply for a Statutory Off Road Notification (SORN).

  • Export your vehicle. If you are exporting your vehicle from the UK, you will not need to pay car tax.

Here are some additional tips for reducing your car tax:

  • Pay your car tax on time. If you pay your car tax on time, you will get a 5% discount.

  • Check your car tax band regularly. The car tax bands are updated every year, so it is important to check your car tax band regularly to make sure that you are paying the correct amount of tax.

  • Claim any refunds that you are owed. If you have sold your vehicle or taken it off the road, you may be entitled to a refund of any unused car tax.


What happens if you don't pay car tax UK?


If you don't pay car tax in the UK, you could face a number of penalties, including:

  • An £80 fine. This is the standard fine for not having car tax.

  • A penalty charge notice (PCN). If you are caught driving without car tax, you could be issued with a PCN by a traffic warden. The amount of the PCN will vary depending on the local authority.

  • Clamping of your vehicle. If you are caught driving without car tax, your vehicle could be clamped by the police or a traffic warden. The cost of having your vehicle released will be at your expense.

  • Crushing of your vehicle. If you are caught driving without car tax on a repeated basis, your vehicle could be crushed.

  • A criminal record. Failing to pay car tax is a criminal offence. If you are convicted of this offence, you could be given a criminal record.

In addition to these penalties, you may also be liable to pay interest on any unpaid car tax. The interest rate is currently 8% per year.

It is important to note that the penalties for not paying car tax can be severe. If you are unsure whether you need to pay car tax, you should contact the Driver and Vehicle Licensing Agency (DVLA) for more information.


Here are some tips for avoiding penalties for not paying car tax:

  • Pay your car tax on time. You can pay your car tax online, by phone, or by post.

  • Check your car tax band regularly. The car tax bands are updated every year, so it is important to check your car tax band regularly to make sure that you are paying the correct amount of tax.

  • Claim any refunds that you are owed. If you have sold your vehicle or taken it off the road, you may be entitled to a refund of any unused car tax.

  • Keep your V5C registration certificate safe. Your V5C registration certificate is your proof of car tax. If you lose it, you will need to apply for a replacement, which can take several weeks.


Is UK car tax refundable?


Yes, UK car tax is refundable if you sell your vehicle, take it off the road, or it is written off by your insurance company. You can also get a refund if you export your vehicle out of the UK.


To claim a refund of your car tax, you will need to contact the Driver and Vehicle Licensing Agency (DVLA) and tell them that you have made one of the changes listed above. You will need to provide the DVLA with your vehicle registration number and your V5C registration certificate number.


The DVLA will then calculate the amount of refund that you are owed and will send you a cheque. The refund will be paid to the name and address on your vehicle log book.


Here are some things to keep in mind when claiming a refund of your car tax:

  • You can only claim a refund for unused car tax. If you have already paid for a full year of car tax and then sell your vehicle or take it off the road in the first few months of the year, you will only be entitled to a refund for the months that you have not used.

  • You must claim your refund within 6 months of the date that you made the change to your vehicle. If you do not claim your refund within 6 months, you will not be able to claim it at all.

  • You can claim your refund online, by phone, or by post.


Can you drive a car without tax UK?


No, you cannot drive a car without tax in the UK. It is an offence to drive a vehicle on a public road in the UK without road tax, and you could face a number of penalties if you are caught doing so, including:

  • An £80 fine.

  • A penalty charge notice (PCN).

  • Clamping of your vehicle.

  • Crushing of your vehicle.

  • A criminal record.

In addition to these penalties, you may also be liable to pay interest on any unpaid car tax. The interest rate is currently 8% per year.

There are a few exceptions to the rule that you need to have car tax to drive a car on a public road in the UK. For example, you do not need car tax if you are driving a vehicle to a pre-booked MOT test, or if you are driving a vehicle that is exempt from car tax, such as a classic car or a disabled person's vehicle.


If you are unsure whether you need to pay car tax, you should contact the Driver and Vehicle Licensing Agency (DVLA) for more information.


Here are some tips for avoiding penalties for driving without car tax:

  • Make sure that your car is taxed. You can check your car tax status online, by phone, or by post.

  • Keep your V5C registration certificate safe. Your V5C registration certificate is your proof of car tax.

  • If you are selling your car, make sure that the buyer pays for the car tax.

  • If you are taking your car off the road, apply for a Statutory Off Road Notification (SORN).


Does UK car tax automatically renew?


Yes, UK car tax automatically renews if you have set up a Direct Debit with the Driver and Vehicle Licensing Agency (DVLA).

When you set up a Direct Debit, you will choose how often you want to pay your car tax: monthly, every 6 months, or every year. The DVLA will then take the money from your bank account on the same day each month, six months, or year.


If you do not have a Direct Debit set up, you will need to renew your car tax manually. You can do this online, by phone, or by post.


To renew your car tax online, you will need to go to the DVLA website and enter your vehicle registration number and your V5C registration certificate number. You can then choose to pay for your car tax by credit or debit card, or by Direct Debit.


You will need to provide the DVLA with your vehicle registration number and your V5C registration certificate number. You can then choose to pay for your car tax by credit or debit card, or by Direct Debit.


When did UK vehicle tax go up?

Car tax in the UK went up on April 1, 2023. The increases were in line with inflation, and affected all vehicles registered after April 1, 2017.


The standard rate of car tax for vehicles registered after April 1, 2017 is £180 per year. This is up from £165 per year in the 2022/2023 financial year.


The first-year rate of car tax for vehicles registered after April 1, 2017 varies depending on the CO2 emissions of the vehicle. The highest first-year rate is £2,605 for vehicles that emit over 255g/km of CO2.


The expensive car supplement is also payable for vehicles registered after April 1, 2017 that have a list price of over £40,000. The supplement is £355 per year for the first 5 years of the vehicle's life.

The changes to car tax in 2023 are part of the government's plans to reduce emissions and improve air quality.


Which car has no road tax in UK?


Here are some cars that have no road tax in the UK:

  • Fully electric cars. Electric cars do not produce any emissions, so they are exempt from road tax. This includes all new electric cars registered after April 1, 2017, as well as some older electric cars that meet certain criteria.

  • Hybrid cars with low CO2 emissions. Hybrid cars that emit less than 110g/km of CO2 are exempt from road tax. This includes some popular hybrid cars, such as the Toyota Prius and the Honda Insight.

  • Historic cars. Cars that are over 40 years old are exempt from road tax. This includes a wide range of classic cars, from the Mini Cooper to the Jaguar E-Type.

  • Cars used by disabled people. Disabled people who use a vehicle for mobility reasons may be eligible for a disability exemption from road tax. This exemption is available for both electric and petrol/diesel cars.

It is important to note that the rules for road tax in the UK can change, so it is always best to check with the Driver and Vehicle Licensing Agency (DVLA) for the latest information.


Which cars are exempt from UK road tax?


Here are some cars that are exempt from UK road tax:

  • Fully electric cars. Electric cars do not produce any emissions, so they are exempt from road tax. This includes all new electric cars registered after April 1, 2017, as well as some older electric cars that meet certain criteria.

  • Hybrid cars with low CO2 emissions. Hybrid cars that emit less than 110g/km of CO2 are exempt from road tax. This includes some popular hybrid cars, such as the Toyota Prius and the Honda Insight.

  • Historic cars. Cars that are over 40 years old are exempt from road tax. This includes a wide range of classic cars, from the Mini Cooper to the Jaguar E-Type.

  • Cars used by disabled people. Disabled people who use a vehicle for mobility reasons may be eligible for a disability exemption from road tax. This exemption is available for both electric and petrol/diesel cars.

  • Cars used for agriculture, forestry, and horticultural purposes. These cars are exempt from road tax if they are used for work purposes and are registered with the Environment Agency.

  • Cars used for medical purposes. These cars are exempt from road tax if they are used to transport patients or medical equipment.

  • Cars used for snow clearance. These cars are exempt from road tax if they are used to clear snow from roads and pavements.

  • Cars used for racing. These cars are exempt from road tax if they are only used for racing and are not used on public roads.

It is important to note that the rules for road tax in the UK can change, so it is always best to check with the Driver and Vehicle Licensing Agency (DVLA) for the latest information.

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