Can I claim back road tax if I scrap my car
It’s always a shame to see a vehicle come to the end of its life, but if you’re scrapping your car, you can also reclaim car tax back on it. As long as there are one or more full months of paid tax left on your account, you can cancel your car tax and claim a car tax refund and you should also be able to get a refund on your car insurance if you scrap your car through your insurance company.
If you know when your tax is due, you should be able to make an educated guess as to what you’ll get back. And while it might not take the sting out of seeing your trusty old car towed away, at least you’ll have a little bit of extra money in your pocket for cancelling car tax.
Below is a quick summary of how to scrap your car
- Look online for a scrap car companies
- Get a few quotes so you can find the best one
- Accept the best quote & arrange a free scrap car collection
- Provide the scrap car dealer with id eg a driving license
- Get a receipt from the scrap car dealer
- Give them the V5 registration document retaining section 9. Complete section 9 of the V5C document (or section 4 on V5Cs issued after April 2019) and send it to the DVLA
- Contact your insurance company who will cancel the policy and provide you with a refund for any months of unused insurance
- You will receive a certificate of destruction within 7 days
How much road tax can I get refunded?
If you sell your scrap car, the new style road tax applies meaning you are entitled to a car tax refund of any full months of remaining road tax. For example, if your tax is paid until the end of June and you scrap your car on January 20th, you will receive a dvla tax refund for the remaining 5 months of tax on the tax disc- February, March, April, May, and June.
If you have taxes paid for part of a month – say, January 20th – you cannot reclaim road tax for that partial month. Be sure to keep this in mind when scrapping or selling your car!
Can I get a vehicle tax refund if I apply to SORN my car?
If your car is not being driven and is not stored on a public road, you can apply for a Statutory Off Road Notification (SORN). When you register a vehicle as SORN, your car tax will be cancelled automatically you will get a refund for any full months of unused road tax.
Cancelling your policy will result in a refund of any unused premium, and you will no longer be liable for any damage or accidents that occur while the policy is inactive. Making a SORN is possible through the DVLA’s online service.
When applying for a SORN, you will need either the 11-digit number from the V5C of the car you wish to SORN. After making a SORN, you should automatically receive your DVLA SORN tax refund cheque within 4-6 weeks.
Getting a refund of road tax when you scrap your car
It’s important to let the DVLA know when you sell your car to a scrap dealer, as otherwise, they’ll still assume you’re the owner. So, when the DVLA receive your posted yellow V5C slip after you have scrapped your car, they’ll automatically be informed that you’re no longer responsible for the car and will issue a vehicle tax refund automatically via cheque.
Alternatively, you can also inform the DVLA (Department of vehicle licensing agency) that you’ve sold your vehicle through their online portal – Following the steps on the vehicle tax refund page will alert them to any tax payments that need to be refunded.
Either way, it’s important to make sure that you inform the DVLA of any changes to your vehicle ownership status so that you can avoid any penalties or fines further down the line.
Cheques are sent to the address and name listed on the vehicle log book.
Car tax Refunds will not be given for:
- Credit card fees
- 5% Direct debit fees
- a 10% surcharge per six-month instalment
DVLA must be notified that your vehicle has been:
- Transferred or sold to someone else
- When a vehicle is removed from the road, for example, when you keep it in a garage – a Statutory Off Road Notification (SORN) is issued.
- It will be written off by your insurer.
- Scrapped at a scrapyard
- due to theft – you must contact your insurer separately for a reimbursement/li>
- if the car was exported
- with an exemption from vehicle tax
What happens to road tax when car is sold?
Road tax no longer carries over when you buy or sell a used car starting in October 2014. Before taking ownership of the vehicle, the new owner must purchase road tax.
The problem is that this creates more hassle for buyers, since they must fill out an online form or call the DVLA to pay road tax for the car before they can drive it off. This is true even though previous owners have already paid for the road tax on the car.
Because the DVLA is antiquated and unable to cope with the 21st-century world we live in, it is only able to process road tax on a monthly or annual basis. So if you buy a used car on the 15th of the month, you have to pay road tax for the whole month.
But the previous owner will not be refunded for any unused months of remaining tax, meaning they are out of pocket by as much as a whole month’s worth of road tax. In addition, if you sell your car mid-way through your payment period, you will also not be refunded for the unused portion of your road tax.
The DVLA claims that this change will simplify the process of taxing vehicles, but in reality its more work
When selling a car, what do you need to do about road tax?
When you sell your car, you need to notify the DVLA immediately so they can cancel the road tax. You will only receive a refund for whole months of road tax that have been paid, so if you sell your car on the first of the month then you won’t receive a refund for that month.
It’s important to note that if you don’t notify the DVLA that you are no longer the registered keeper of the vehicle, you could be fined up to £1,000. The best way to avoid any issues is to make sure you notify the DVLA as soon as possible after selling your car.
If there is no road tax, there is no insurance
It is important to remember that if your car is not taxed, it will also not be insured. This means that if you are involved in an accident or have your car stolen, your insurance will not be valid.
In addition, if you scrap or export your car, you need to notify the DVLA and apply for a Statutory Off Road Notification (SORN) which means you can avoid paying road tax. This remains applicable as long as the car is off the road.
However, you can’t put the car back on a public road – even if it’s just parked on the street – until you pay road tax again. Therefore, it is essential to be aware of the consequences of not paying road tax, as it could end up costing you a lot more in the long run.
What is the enforcement process for road tax violations?
Road tax is a yearly tax that needs to be paid in order to legally drive on UK roads. The DVLA is the government agency in charge of issuing and collecting road tax. In the past, drivers were required to display a physical road tax disc in their vehicle’s windscreen. However, this system was discontinued in October 2014. Now, road tax is paid online or via direct debit, and there is no longer a need to display a physical road tax disc
Although the system has changed, the purpose of road tax remains the same. The money collected from road tax goes towards maintaining and improving UK roads. Road tax also helps to fund other transport-related projects, such as public transport initiatives and cycling infrastructure
Drivers who do not pay their road tax are subject to fines and other penalties. Police officers use Automated Number Plate Recognition (ANPR) cameras to catch untaxed vehicles on the road. If a vehicle is found to be untaxed, the DVLA can clamp the vehicle or impound it. This means that the driver will have to pay a release fee in order to get their vehicle back
Paying road tax is an important part of being a responsible driver
When will my road tax refund arrive?
If you have recently scrapped your car and are entitled to a vehicle tax refund, you should expect the process to take around six weeks. If you have not received your refund after this time, you can contact the DVLA for further assistance.
The DVLA offers several contact options, including a phone line and an online form. When contacting the DVLA, be sure to have your car registration number handy so that they can quickly locate your file. In most cases, the DVLA will be able to resolve any issues and issue your refund without delay.
However, if you are still experiencing problems, you may need to provide additional documentation or contact the DVLA again. In any case, the DVLA should be able to help you resolve the issue and get your car tax refund as soon as possible.
0300 790 6802 (lines open Mon-Fri 8am – 7pm and Saturday 8am – 2pm)
Vehicle Customer Services