What happens to my road tax after I scrap a car?
If you’ve recently scrapped your car, one of the first questions (after wondering how much we’ll pay for your scrap car) is what will happen regarding your road tax. Specifically, you might be wondering whether you can obtain a refund on any remaining road tax. The good news is, yes, you can. The process is relatively straightforward, but there are a few things you need to understand. This guide will outline how you can receive your road tax refund after scrapping your vehicle.
How Scrapping Your Car Impacts Road Tax
When your vehicle is scrapped and you inform the DVLA (Driver and Vehicle Licensing Agency) of this, any outstanding road tax will be refunded to the registered keeper of the car. Thus, if you were worried about losing out on the road tax you’ve already paid for, rest assured you will get it back.
Procedures to Follow for Road Tax After Car Scrapping
To claim back your road tax after scrapping your car, it’s crucial to inform the DVLA that you’ve scrapped your car at a vehicle scrapyard. Once the DVLA is notified, they will automatically cancel your vehicle tax.
According to the DVLA, “You’ll automatically get a refund cheque for any full months left on your vehicle tax. The refund is calculated from the date DVLA gets your information. The cheque is sent to the name and address on the vehicle log book.” However, it’s important to note that you won’t receive a refund for any credit card fees or surcharges on Direct Debit payments or single 6-month payments.
For those who pay their road tax via Direct Debit, the DVLA will automatically cancel it once they receive notice of your vehicle being scrapped. The DVLA charges a full months tax the moment it passes the 1st of the month, and there is no refund for a partial month – so if your car breaks down near the end of the month, save yourself some pennies by getting the car scrapped sooner rather than later.
As for when you’ll receive the refund, expect a cheque within approximately 8 weeks of informing the DVLA. If you haven’t received it after this time, you should get in touch with the DVLA. You can call them on 0300 790 6802 or use their email service.
In conclusion, scrapping your car doesn’t mean you lose out on your road tax. By following the correct procedures and notifying the DVLA in a timely manner, you can ensure you receive any outstanding road tax back after your vehicle has been scrapped.