From 1st October 2014, the paper tax disc will no longer be issued or required to be displayed on a vehicle windscreen. Motorists are still required to pay for vehicle (road) tax but as the DVLA have a digital record of who has and has not paid, a paper tax disc is no longer necessary as proof that the tax is paid.
The Department for Transport (DfT) is trying to make it easier for people and businesses to use government services. One of the areas they have decided to change is the way in which payments can be paid. DVLA will offer motorists the ability to spread their vehicle tax payments. For vehicle tax starting from 1 November 2014, motorists will be able to pay vehicle tax by direct debit annually, 6 monthly or monthly. There will be no additional handling fees for annual payments but to limit the impact on the public finances there will be a small surcharge of 5% of vehicle tax for 6 monthly and monthly payments. This is a reduction in the existing 10% surcharge that is currently applied to 6 monthly tax discs and which has been in existence for a number of decades.