Road tax: how to pay, how much it costs, and what to do if you miss it

Road tax is Vehicle Excise Duty (VED). Despite the name, the money does not go to roads. It goes into general government revenue. Roads are funded separately through general taxation. This is worth saying because many people believe otherwise and feel aggrieved when roads are in poor condition.

The physical tax disc was abolished in October 2014. You no longer display anything in the windscreen. DVLA's ANPR camera network reads number plates and checks the database automatically. There is no manual inspection. If your vehicle is untaxed, the system will find it.

Every vehicle registered to drive on public roads must be taxed. The exception is vehicles declared SORN, meaning they are off the road and stored on private land.

There are three routes, and online is by far the most convenient.

Online at GOV.UK. You can pay for 12 months, 6 months, or set up a monthly direct debit. You need either your V5C logbook (using its reference number), a V11 reminder letter, or the green slip from a V5C if you have just bought the car. The direct debit option lets you spread the cost monthly, though the total cost over a year is slightly more than paying annually upfront.

At a Post Office. You need to bring a valid MOT certificate, proof of valid insurance, and your V11 reminder letter or V5C. You cannot tax a vehicle at the Post Office without a current MOT. The Post Office issues the tax immediately.

By phone. DVLA operates a vehicle tax phone line. The number is on your V11 reminder letter or available via GOV.UK.

One rule that catches people out repeatedly: road tax does not transfer when you buy a used vehicle. When the previous keeper sells the car, their road tax is immediately cancelled and they receive a refund for any complete months remaining. The buyer must tax the vehicle separately before driving away. There is no overlap. There is no grace period. The moment ownership changes, the vehicle is untaxed.

The amount depends on when your vehicle was first registered and, for newer cars, how much CO2 it emits.

Cars registered from 1 April 2017. First-year rates vary widely by CO2 emissions, from £0 for zero-emission vehicles to over £2,000 for high-emission cars. From the second year onwards, most cars pay a standard annual rate. If the car had a list price over £40,000 when new, an additional surcharge applies for the first five years after registration. Check GOV.UK for the current rate table: the figures change each April.

Cars registered from 1 March 2001 to 31 March 2017. Rates are based on CO2 band, but using an older banding system. Most mid-range family cars in this group pay a moderate annual rate. Again, check GOV.UK for the current band table.

Cars registered before 1 March 2001. No CO2 data exists for these vehicles, so rates are based on engine size. Small-engine cars pay less than large-engine cars.

Electric vehicles. EVs are no longer exempt from road tax. From April 2025, electric vehicles pay VED at the same rates as petrol and diesel cars. The first-year rate for a new zero-emission car is low, but from the second year the standard rate applies. Check GOV.UK for the current figures.

Historic vehicles. Any vehicle manufactured more than 40 years ago is exempt from road tax entirely. You still need to apply for the exemption at GOV.UK, but you do not pay.

Road tax must be renewed when the current period expires. If you pay annually, that is once a year on the same month each year. If you pay by direct debit, DVLA collects the monthly payment automatically.

DVLA sends a V11 reminder letter by post to the registered keeper's address about a month before the tax expires. This is the single biggest reason people miss renewals: they have moved and the reminder went to the old address. If you have moved and not updated your V5C, you will not receive the reminder.

Update your V5C address at GOV.UK whenever you move. It is a legal requirement, not a courtesy.

SORN stands for Statutory Off Road Notification. It is a declaration to DVLA that your vehicle is not being used on public roads and is stored off the public highway, on private land such as a driveway or garage.

When you declare SORN, your road tax is cancelled and any remaining tax is refunded. The vehicle is exempt from needing road tax or a current MOT while it is SORN'd. You declare SORN online at GOV.UK and it takes effect immediately.

There are limits. A SORN vehicle cannot be driven on a public road. If you want to use the vehicle again, you must retax it. To retax a vehicle coming off SORN, you need a valid MOT and valid insurance in place first.

SORN is the right move when you are storing a vehicle long-term, waiting for a restoration, keeping a second vehicle through winter, or simply not using a car for an extended period.

DVLA runs an automated system. Cameras across the road network read number plates and check them against the database in real time. The system does not require an officer to spot your car. If your vehicle is untaxed and driven on a public road, the camera will find it.

The fixed penalty for driving an untaxed vehicle is £80. Pay within 28 days and it reduces to £40. Ignore it, and the matter goes to court where the fine can be much higher, plus costs.

Beyond fines, DVLA can clamp an untaxed vehicle parked on a public road. There is a release fee to have the clamp removed, plus any outstanding tax and penalty. If the vehicle is not claimed within a set period, it can be impounded and ultimately crushed.

This applies even if the vehicle is just parked and never driven. Untaxed vehicles on public roads are subject to clamping whether they are being driven or not.