End of road for car tax disc 05 | 12 | 2013
THE TRUSTY OLD TAX DISC, that round piece of paper you annually tear out and stick in the bottom left-hand corner of your car's windscreen, is to be scrapped.
In its place will come a modern electronic system, which will be confirmed today by Chancellor George Osborne.
And for the first time — and, supposedly in an effort to help spread the burden for hard-pressed drivers — motorists will also be able to pay for their vehicle excise duty (VED) by monthly direct debit. The downside: it'll actually cost you an extra 5% to do so.
There is though another money-saving change: the extra charge for paying for six months at a time will be reduced from 10% to 5%.
According to the Treasury, the two measures are expected to save motorists who spread their payments over £20 million a year.
Related: SMTA revises new car totals
And businesses are expected to save a total of £7 million a year in administration costs, thanks to the scrapping of the tax disk.
Customers who are not online will still be able to tax their car in person at a Post Office or on the phone.
"This is a visual symbol of how we are moving government into the modern age and making dealing with government more hassle free," a Treasury spokesman said.
The changes are scheduled to become operational in October next year, following them being legislated for in next year's Finance Bill
Officials said the tax disc was no longer needed for enforcement purposes, with the Driver and Vehicle Licencing Agency and police already relying on an electronic register.
Statistics back that up: since 2008 the number of visual notifications by the police has fallen by 75%
Vehicle tax was introduced in the 1888 budget and the system of excise duty applying specifically to motor vehicles was introduced in 1920, with the tax disc appearing the following year.
Related: DVLA 'a shambles', says SMTA
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Jim McGill