How to Tax Your Car Online UK - Complete DVLA Guide 2025

Vehicle tax (commonly called road tax or car tax) is a legal requirement for driving on UK roads. The process of taxing your car online is straightforward, but there are important details you need to understand - especially around when you need to tax, what documents you need, and how the rates work.

This guide walks you through everything: the step-by-step online process, SORN declarations, setting up Direct Debit, understanding tax rates, and resolving common problems.

What this guide covers:

• Step-by-step DVLA online taxing process
• What documents you need
• SORN explained (when you do not need to tax)
• Setting up Direct Debit payments
• Understanding tax rates and bands
• Common issues and how to resolve them

Why You Must Tax Your Vehicle

The law is clear: Any vehicle kept or driven on public roads must be taxed. This includes parked vehicles on public streets.

Penalties for untaxed vehicles:

• Late licensing penalty: 80 pounds
• Court fine: Up to 1,000 pounds
• Wheel clamping and removal costs: 100 to 700 pounds
• Vehicle destruction if not claimed
• Backdated tax charges

Important: DVLA uses automatic number plate recognition (ANPR) cameras. Untaxed vehicles are identified automatically. You cannot hide from this.

Tax Does Not Transfer Between Owners

This catches many new car owners. When you buy a car, any existing tax is cancelled automatically. You must tax the vehicle in your name before driving it, even if the previous owner had months of tax remaining.

The previous owner receives a refund for any complete months remaining on their tax. You pay from the date you take ownership.

What You Need to Tax Your Car

Before starting, gather these documents:

Option 1: V5C Registration Document (Logbook)

• The 11-digit reference number from the V5C
• Located in the green section of the document

Option 2: V5C/2 New Keeper Supplement (Green Slip)

• Given to you when buying a car
• 12-digit reference number
• Use this if you have not yet received your new V5C

Option 3: V11 Reminder Letter

• Sent by DVLA before tax is due
• Contains reference number
• Only sent to registered keeper

You will also need:

• Valid MOT (if car is over 3 years old)
• Valid insurance (checked automatically via MID database)
• Debit or credit card for payment

Cannot find your documents?

• Apply for a replacement V5C online (25 pounds) or wait for it to arrive
• Without reference number, you cannot tax online
• You can tax at a Post Office with your driving licence if V5C is lost

Step-by-Step: Taxing Your Car Online

Step 1: Go to the DVLA Website

Navigate to: gov.uk/vehicle-tax

This is the only official website. Never use third-party sites that charge fees - the government service is free (beyond the tax itself).

Step 2: Enter Your Vehicle Details

Click "Start now"

Enter your vehicle registration number (number plate) exactly as shown on documents. The system checks:

• Vehicle exists on DVLA database
• MOT status (if applicable)
• Insurance status via MID

Step 3: Enter Your Reference Number

Input the reference number from your:

• V5C (11 digits)
• V5C/2 new keeper slip (12 digits)
• V11 reminder (reference shown)

The system verifies this matches the vehicle registration.

Step 4: Confirm Vehicle Details

You will see:

• Make and model
• Colour
• Engine size
• CO2 emissions
• Tax band
• Amount due

Check this information carefully. If anything is wrong, do not proceed - contact DVLA.

Step 5: Choose Payment Method

Options:

1. Single 12-month payment

• Pay full year upfront
• No additional charges
• Cheapest overall option

2. Single 6-month payment

• Pay for half year
• Costs approximately 10% more than half of annual rate
• Good if cash flow is tight

3. Monthly Direct Debit

• Spread cost across 12 months
• 5% surcharge added to annual rate
• Most convenient option
• Automatic renewal (never forget)

Example costs (standard rate 190 pounds):

• Annual payment: 190 pounds
• Six-monthly: 2 x 104.50 = 209 pounds
• Monthly Direct Debit: 12 x 16.63 = 199.50 pounds

Step 6: Enter Payment Details

For single payments:

• Enter debit or credit card details
• Payment taken immediately
• Confirmation shown on screen

For Direct Debit:

• Enter bank account details
• Sort code and account number
• Direct Debit set up automatically
• First payment taken within 5 days
• Subsequent payments on same date each month

Step 7: Save Your Confirmation

What happens next:

• Tax is valid immediately
• No tax disc sent (abolished in 2014)
• Details updated on DVLA database
• Police and ANPR cameras can verify instantly

Keep your confirmation:

• Print or screenshot the confirmation
• Reference number for your records
• Proof of payment if needed

Setting Up Direct Debit in Detail

Direct Debit is the most popular payment method for good reason. Here is how it works:

Advantages of Direct Debit

• Never forget: Automatic monthly payments
• Spread cost: Easier budgeting than large annual payment
• Continuous cover: Automatically renews
• Easy to manage: Cancel or change online

Setting Up New Direct Debit

1. Select "Monthly Direct Debit" during tax process
2. Enter bank details when prompted
3. First payment taken within 5 working days
4. Monthly payments on same date thereafter
5. Renews automatically each year

If You Already Have Direct Debit

When you change car, your existing Direct Debit does NOT transfer. You must:

1. Set up new Direct Debit for new vehicle
2. Cancel old Direct Debit (or it continues incorrectly)
3. Update within 14 days of purchase

Cancelling Direct Debit

If you sell your car or SORN it:

1. Log in to gov.uk/vehicle-tax
2. Select your vehicle
3. Choose to cancel Direct Debit
4. Refund issued for complete remaining months

Warning: If Direct Debit fails (insufficient funds, bank changes), your tax becomes invalid. Ensure your bank details are current.

SORN - Statutory Off Road Notification

If your car is not being used on public roads, you can declare SORN instead of taxing it.

What is SORN?

SORN declares your vehicle is kept off public roads and therefore does not need taxing. It must be kept:

• On private property
• In a garage
• On private land

Not acceptable: Parked on a public road, even briefly.

When to Use SORN

Appropriate situations:

• Car stored in garage long-term
• Vehicle being repaired (off-road)
• Project car not being driven
• Waiting to sell (stored at home)
• No longer needed but keeping

Not appropriate:

• Still driving occasionally (you need tax)
• Parked on street while deciding (still public road)
• "Just for a few days" (there is no grace period)

How to Declare SORN

Online (easiest):

1. Go to gov.uk/sorn-statutory-off-road-notification
2. Enter registration number
3. Enter V5C reference number
4. Confirm declaration
5. SORN starts immediately

By phone: 0300 123 4321

SORN is free and valid indefinitely until you tax the vehicle again.

SORN Refunds

When you SORN a taxed vehicle:

• Tax is cancelled immediately
• Refund issued for complete months remaining
• Refund arrives within 4-6 weeks
• Sent to registered keeper address

Example: SORN declared 15th March with tax paid until end of August. Refund covers April, May, June, July, August = 5 months.

Ending SORN

To drive the vehicle again:

1. Tax the vehicle online
2. SORN ends automatically
3. Insurance must be valid before driving

You cannot drive to get an MOT on SORN. Book a mobile MOT or transport the vehicle.

Understanding Tax Rates and Bands

Cars Registered After 1 April 2017

First year rate: Based on CO2 emissions, ranging from 0 pounds (zero emissions) to 2,745 pounds (over 255g/km).

Subsequent years: Flat rate of 190 pounds for most cars.

Expensive car supplement: Vehicles with list price over 40,000 pounds pay additional 410 pounds for years 2-6 (total 600 pounds annually).

Zero emission vehicles: Currently 0 pounds, but changing from April 2025 to standard rate (190 pounds).

First Year Rates 2024/25:

CO2 (g/km)	First Year
0	0
1-50	10
51-75	30
76-90	135
91-100	175
101-110	195
111-130	220
131-150	270
151-170	680
171-190	1,095
191-225	1,650
226-255	2,340
Over 255	2,745

Cars Registered 1 March 2001 to 31 March 2017

Tax based on CO2 emissions bands (A to M):

Band	CO2 (g/km)	Annual Rate
A	Up to 100	0
B	101-110	20
C	111-120	35
D	121-130	160
E	131-140	190
F	141-150	210
G	151-165	255
H	166-175	285
I	176-185	320
J	186-200	370
K	201-225	415
L	226-255	710
M	Over 255	735

Cars Registered Before 1 March 2001

Based on engine size only:

• 1549cc and under: 200 pounds
• Over 1549cc: 325 pounds

Electric Vehicles - Important 2025 Change

Currently, battery electric vehicles pay 0 pounds road tax.

From April 2025: Electric vehicles will pay standard rate (190 pounds). This is a significant change for EV owners to budget for.

Hybrid vehicles already pay standard rates (they produce some emissions).

Common Problems and Solutions

Problem: Cannot Tax Online - MOT Required

Error: "Vehicle does not have a valid MOT"

Solution:

• Arrange MOT before taxing
• MOT must be valid on the day you tax
• If MOT expired, you cannot drive to test centre
• Book mobile MOT or transport vehicle

Exception: New cars under 3 years old do not need MOT.

Problem: Reference Number Not Recognised

Error: "Reference number does not match"

Solution:

• Check you are entering the correct document reference
• V5C: Use the 11-digit reference number
• V5C/2: Use the 12-digit reference number
• Ensure no spaces or errors
• If new keeper, document may not be registered yet (wait 2-5 days)

Problem: Just Bought Car - No Documents Yet

Situation: Bought car, have V5C/2 green slip, but DVLA has not processed it

Solution:

• Wait 2-5 working days for DVLA to process
• Then use V5C/2 reference number online
• Or tax at Post Office with green slip and your driving licence

Problem: Vehicle Shows as SORN

Situation: Bought car that was SORN, seller's SORN still showing

Solution:

• This is normal
• Simply tax the vehicle
• SORN ends automatically when tax begins

Problem: Insurance Not Showing

Error: "We cannot confirm insurance"

Solution:

• Insurance must be on Motor Insurance Database (MID)
• New policies take up to 48 hours to appear on MID
• Contact your insurer to confirm MID registration
• Wait and try again later
• You can tax at Post Office if urgent

Problem: Direct Debit Payment Failed

Situation: Bank rejected Direct Debit, tax now invalid

Solution:

• Tax lapses immediately when payment fails
• You cannot drive until re-taxed
• Go online and set up new tax immediately
• Contact DVLA if penalty notice received (0300 790 6802)
• Update bank details if account changed

Problem: Sold Car but Still Getting Letters

Situation: Sold vehicle but receiving DVLA correspondence

Solution:

• Ensure you completed V5C Section 6 (seller details)
• Report sale online at gov.uk/sold-bought-vehicle
• Keep your acknowledgement
• Contact DVLA with sale date and buyer details
• Letters should stop within 4-6 weeks

Checking Your Tax Status

To verify your vehicle is taxed:

1. Go to gov.uk/check-vehicle-tax
2. Enter registration number
3. View current status, tax due date, and MOT status

Check this:

• After taxing (should update within minutes)
• Before any journey in a vehicle you do not drive often
• When buying a car (verify it is taxed or needs taxing)

Tips for Managing Vehicle Tax

Set Up Reminders

Even with Direct Debit, set reminders:

• MOT due (1 month before)
• Insurance renewal (1 month before)
• Service due (according to schedule)

Keep Documents Accessible

Store your V5C safely but accessibly. You need the reference number for:

• Taxing
• Selling
• Insurance quotes (sometimes)
• Breakdown services

Check Tax Status Regularly

Use the free government checker periodically. Mistakes happen - better to catch them than face penalties.

Plan for Life Changes

If you:

• Move house: Update V5C within 3 weeks
• Change name: Update V5C
• No longer need car: SORN or sell
• Buying new car: Remember tax does not transfer

Summary: Key Points to Remember

1. Tax does not transfer: When you buy a car, you must tax it immediately, regardless of previous owner's tax status.

2. Three payment options: Annual (cheapest), six-monthly, or monthly Direct Debit (most convenient).

3. SORN is free: If your car is kept off public roads, declare SORN to avoid paying tax.

4. No tax disc: Since 2014, there is no physical disc. Police verify electronically.

5. MOT and insurance required: You cannot tax without valid MOT (if over 3 years old) and insurance.

6. Electric vehicle change 2025: EVs will pay standard rate from April 2025.

7. Never drive untaxed: Penalties are severe and cameras detect untaxed vehicles automatically.

The online system at gov.uk/vehicle-tax makes taxing straightforward. Keep your documents accessible, set up Direct Debit for convenience, and you will never face problems with vehicle tax.

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