How To Cancel UK Car Tax in 2024 (6 Easy Steps)

How to Cancel UK Car Tax: A Comprehensive Guide

Car tax, officially known as Vehicle Excise Duty (VED), is a mandatory expense for all vehicle owners in the UK. However, there may be circumstances where you need to cancel your car tax. Whether you’re selling your car, declaring it off the road, or exporting it, canceling your car tax can save you money. This article provides a step-by-step guide on how to cancel UK car tax and covers essential information you need to know.

Why Cancel UK Car Tax?

There are several reasons why you might want to cancel your car tax:

1. Selling Your Car: When you sell your car, the new owner is responsible for taxing the vehicle.
2. SORN (Statutory Off Road Notification): If you’re taking your car off the road and won’t be driving it, you can declare it SORN.
3. Exporting Your Car: If you’re taking your car out of the country, you need to cancel your car tax.
4. Scrapping Your Car: If your car is no longer roadworthy and you’re scrapping it, you should cancel the car tax.

How to Cancel UK Car Tax

Step 1: Inform the DVLA

The first step in canceling your car tax is to inform the Driver and Vehicle Licensing Agency (DVLA). You can do this by:

• Online: Visit the DVLA’s official website and navigate to the car tax section. You’ll need to provide your vehicle registration number and other relevant details.
• Post: Send a written notice to the DVLA, Swansea, SA99 1AR. Include your vehicle registration number, the reason for canceling the tax, and any supporting documents.

Step 2: Declare SORN (if applicable)

If you’re taking your car off the road, you need to declare it SORN. You can do this:

• Online: Use the DVLA’s SORN service on their website.
• Post: Complete a V890 form and send it to the DVLA.

Step 3: Receive Confirmation

After you’ve informed the DVLA, you’ll receive a confirmation letter. This will confirm that your car tax has been cancelled. If you’re owed a refund, it will be processed automatically and sent to you.

What Happens Next?

Once your car tax is canceled, you should:

• Stop Using the Car: If you’ve declared your car SORN, ensure it’s kept off public roads.
• Inform Your Insurance Company: Let your car insurance provider know that your car is now off the road or sold.
• Keep Records: Maintain all correspondence and confirmation letters for future reference.

Refunds on Car Tax

If you cancel your car tax, you may be eligible for a refund. The refund is calculated based on the remaining full months of tax. Here’s how you can apply for a refund:

1. Automatic Refund: In most cases, the DVLA will process the refund automatically once you’ve cancelled your car tax.
2. Manual Refund: If you don’t receive an automatic refund, contact the DVLA to request one. Provide your vehicle registration number and details of your tax cancellation.

Things to Keep in Mind

• Timeliness: Cancel your car tax as soon as you sell, scrap, export, or declare your car SORN to avoid unnecessary charges.
• Documentation: Always keep copies of any forms and correspondence with the DVLA.
• Legal Requirements: Ensure you comply with all legal requirements when cancelling your car tax to avoid fines or penalties.

Common Questions About Canceling UK Car Tax

Can I cancel my car tax online?

Yes, you can cancel your car tax online through the DVLA’s website.

Do I get a refund if I cancel my car tax?

You are eligible for a refund of any remaining full months of car tax.

What do I do if I don’t receive a refund?

Contact the DVLA with your vehicle registration number and details of your tax cancellation to request a refund.

Can I drive my car after declaring it SORN?

No, once your car is declared SORN, it must be kept off public roads.

Conclusion

Cancelling your UK car tax is a straightforward process that can save you money and ensure you comply with legal requirements. Whether you’re selling, scrapping, exporting, or declaring your car off the road, follow the steps outlined in this guide to cancel your car tax efficiently. Always keep records of your transactions with the DVLA and ensure you understand the implications of canceling your car tax.