Tax disc changeover: HPI’s warning for car dealers

Time 8:50 am, August 7, 2014


VEHICLE information provider HPI is warning dealers not to get caught out with fines for cars they no longer have on their forecourts when the move from paper to online tax discs is made on October 1.

After the paper disc is abolished, dealers will no longer be able to purchase vehicles with a tax disc in force and tax discs will not be transferable when a vehicle is sold.

Dealers can either use trade plates, provided that the vehicle is used within the conditions for use of trade plates, or obtain new vehicle tax, if the vehicle needs to be registered in a dealership’s name.

Dealers and vehicle testers still need to apply and pay for a new trade licence once it needs renewing, but there will no longer be a paper trade licence to display with the trade plate.

The new rules no longer require a trade licence holder to display a trade licence. However the rules for trade plates will not change in October.

The new rules also put the onus on used car sellers to inform the DVLA when they sell their vehicle.

Phil Peace, commercial operations Director for HPI, said: ‘We remind motor traders to always send the V5C to the DVLA, rather than relying on the buyer to do it.

‘And always apply for a Certificate of Destruction from an authorised treatment facility for vehicles that are scrapped.

‘We’re hoping that the new DVLA initiatives will make it harder for drivers to head out on the road untaxed. It’s easy to check if a vehicle is taxed by heading online at the Vehicle Enquiry Service, making this the first step for dealers and consumers alike who want to avoid the risk of fines.’

  • In Issue 78 of Car Dealer, out on August 18, editor James Batchelor interviews DVLA chief executive Oliver Morley about a range of issues – including the move from paper to online tax discs.
Dave Brown's avatar

Dave, production editor on Car Dealer Magazine, is a journalist with more than 30 years' experience in the worlds of newspapers, magazines and public relations.

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