Vehicle Excise Duty (VED), also known as vehicle tax, car tax or road tax, must be paid on the majority of vehicles registered in the UK, and any motorist caught driving without it can be fined up to £1,000. According to the government's latest evasion figures, there are hundreds of thousands of unlicensed vehicles on UK roads, costing an estimated £119 million a year in lost revenue. There's a fair bit of confusion around when tax is and isn't needed, so this guide clears it up: when driving without tax is illegal, the exceptions, what happens when you buy or sell a car, and the penalties you face if you're caught.

Is It Always Illegal to Drive Without Car Tax?

By law, it's an offence to drive a vehicle on a public road in the UK without valid road tax, but there are a few exceptions.

If you're taking your car to a pre-booked MOT test, you're allowed to drive it on the road without it being taxed. The law doesn't state exactly how far you can travel, but if you stop off at the shops on the way or cover an unreasonably long distance, it could be judged that you're using the vehicle for other purposes, and the exemption won't apply.

Disabled drivers may be exempt from paying vehicle tax, and certain vehicles such as electric cars and historic vehicles may also be excused. It's worth noting, though, that you still have to apply for vehicle tax even if you don't have to pay it.

A pile of British Bank notes and also British coins

Do Parked Cars on the Road Need to Be Taxed?

Yes. The law states that a registered vehicle being kept or used on public roads must be both taxed and insured.

You don't need to tax your car if you're not driving or parking it on a public road. If it's kept off-road in a garage, on a drive or on private land, it must be declared SORN (Statutory Off Road Notification). You might do this if you're going away for an extended period or your car is being restored. If a vehicle isn't declared SORN, you still need to tax it.

You can apply for SORN free of charge online or using a V890 form. Once a car has been declared SORN, it can't be driven on the road until the SORN is cancelled, and SORNs no longer expire after 12 months. Driving a car that's declared SORN is a more serious offence than simply driving without tax: unless you're going to a pre-booked MOT, you could face a fine of up to £2,500 if caught.

Buying and Selling: What Happens to the Tax?

Buying a Used Car

Under VED rules introduced in October 2014, vehicle tax can no longer be transferred to a new owner. The DVLA refunds any full remaining months of tax to the previous owner, which means whenever you buy a used car, it will always be untaxed. There's also no longer a grace period, the vehicle must be taxed at the point of sale, so you could be fined if you drive off without doing so.

When you buy a second-hand vehicle, the seller should give you the green "new keeper supplement" (V5C/2) from the logbook. You can then tax the car online or at the Post Office using the 12-digit reference number on that form. If the car is more than three years old, you'll also need a valid MOT. If you buy from a dealer, they'll usually tax it for you before you drive away.

Taxing a Brand New Car

Your dealer should set this up for you, but you'll need your car insurance in place before you can drive away from the showroom. If you didn't buy from a dealer but imported or built the vehicle, you'll need to register and tax it yourself using a V55/4 form.

Selling Your Car

If you're selling, make sure the appropriate section of the V5C is sent to the DVLA to notify them of the change of ownership. You'll then receive a refund on any full months of tax you're owed. If you fail to tell the DVLA you're no longer the registered keeper, you could be fined up to £1,000.

A man stressed looking at paper documents

What About Tax When You Pass Your Test?

If you've just passed your test but don't have a car yet, you won't need to apply for road tax until you get your first set of wheels. How much you pay depends on CO2 emissions, engine size and when the vehicle was registered, so to keep costs down, many new drivers look for a car in the lowest tax brackets. If you already have a car, just make sure it's taxed and insured before you drive it.

How Is It Enforced, and What Are the Penalties?

Paper tax discs are long gone, so all checks are now electronic. Automatic Number Plate Recognition (ANPR) cameras scan registrations and check them against the DVLA's database, and the DVLA also runs monthly computer checks of every registered vehicle in the UK. In short, it's very hard to get away with driving untaxed.

If the system flags a vehicle as untaxed and not declared SORN, an automated £80 fine is sent to the registered keeper (no penalty points are added). Pay within 28 days and you should get a 50% discount. Fail to pay and you could be prosecuted, with the penalty rising to a maximum of £1,000 if it goes to court, and the DVLA can clamp your vehicle until the tax is paid.

Can I Get Temporary Tax?

No. The DVLA doesn't offer temporary road tax, so even for a short two-mile trip to the garage, you'd have to pay for either six or twelve months of VED. If you don't need the tax after your short journey, you can apply for a refund for the remaining months. Alternatively, if you're taking the car to a mechanic, you may be able to have the garage tow it, so you don't need tax at all.

A Word on DVLA Scam Emails

There have been many reports of drivers receiving emails or texts from fraudsters posing as the DVLA, claiming they're owed a tax refund and asking them to click a link and enter bank details. These are fake. The DVLA has been clear that it does not send emails or texts asking you to confirm personal or payment details for a vehicle tax refund. If you receive one, don't click any links, and delete it immediately.

Summary:

It's illegal to drive on a public road without valid road tax, with limited exceptions such as driving to a pre-booked MOT. Any vehicle kept on a public road must be taxed and insured, or declared SORN if kept off-road. Tax no longer transfers when a car changes hands, so a car you buy is always untaxed until you tax it, and there's no temporary tax option. Enforcement is electronic and thorough, with an £80 fine rising to as much as £1,000 if unpaid. Stay taxed, keep your details up to date with the DVLA, and ignore any "tax refund" emails, they're scams.

Frequently Asked Questions 

Can I drive my car to an MOT without tax?

Yes, driving to a pre-booked MOT test is one of the few legal exceptions to driving untaxed. You must go directly there, though, if you make other stops or take an unreasonable route, the exemption may not apply.

Does tax transfer when I buy a used car?

No. Since October 2014, vehicle tax can't be transferred between owners. The seller gets a refund for any full remaining months, and the car is untaxed the moment you buy it, so you must tax it before you drive it away.

What's the penalty for driving without tax?

An automated £80 fine is sent to the registered keeper, halved if paid within 28 days, with no penalty points. If unpaid, it can rise to a maximum of £1,000 in court, and the DVLA can clamp the vehicle. Driving a SORN-declared car can bring a fine of up to £2,500.

Do I need to tax a car that's just parked on the road?

Yes. Any registered vehicle kept or used on a public road must be taxed and insured. To avoid taxing it, you'd need to keep it off-road (in a garage, on a drive or on private land) and declare it SORN.

Is there such a thing as temporary road tax?

No. The DVLA doesn't offer temporary tax, so even for a very short journey you'd need to buy six or twelve months of VED. You can apply for a refund on the unused full months afterwards if you no longer need it.

Ready to Learn the Rules of the Road Properly?

Once you've passed, the admin like tax and insurance is easy to sort. The hard part, passing, is much easier with a great instructor. Find your local DRIVE instructor and book your lessons today.