The removal of the paper car tax disc on Wednesday should not make much of difference to the majority of drivers once they're all used to the new system, but there will be one significant change.
Drivers need no longer pay up for up one year or six months advance, and can pay in monthly direct debit installments over 12 months from November 1.
However, people who do this will incur an extra five per cent charge on top of the tax already. There is currently a ten per cent surcharge on a bi-annual payment.
The only other significant change is the transferral of tax from buyer to seller. Currently this just moved over when a car changes hands.
But from October 1, you must tell the DVLA when you sell your car. Anyone selling their vehicle will be refunded on any tax paid in advance, although only for full calendar months left outstanding.
Failure to do so could result in a fine of up to £1,000.
