Budgeting "How Tos"

How To Cancel UK Car Tax (6 Easy Steps)

In order to legally drive a car in the UK, it’s necessary to have valid insurance and tax. However maybe you aren’t using your car anymore, perhaps it’s sat on your drive while you’re away at university, or maybe you aren’t planning on using it in the near future.

If this is the case, you’re paying tax unnecessarily. If you’re set up to do this monthly via direct debit then you can simply cancel your arrangement and save money each month.

If you’ve paid upfront then you will be entitled to a refund for the rest of the year you have paid for, which is handy if you’ve just sold your car and still have a valid tax for the rest of the year.

It is worth remembering you will need to reinstate this before you begin driving again or pay for valid tax on your new car.

To cancel your car tax follow these instructions:

  1. Head to www.gov.uk
  2. Select ‘Driving and Transport’
  3. Select ‘Vehicle Tax, MOT And Insurance
  4. Click on ‘Cancel Your Vehicle Tax And Get A Refund
  5. Select the applicable option (eg ‘Take Off The Road’)
  6. Click on ‘Start Now
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Fully qualified CISI Investment adviser for 5 year. Managed UK private client portfolios.
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