How do I get a refund on my car tax?
Key takeaways
You can get a refund for any full months of vehicle tax remaining when your tax is cancelled for a qualifying reason
In most cases, your refund is automatic once you tell DVLA what has happened to the vehicle
DVLA normally sends your refund by cheque to the name and address on your V5C log book, and you should contact them if the cheque has not arrived after eight weeks
When can I get a car tax refund?
You can get a refund for any full months of vehicle tax left if the DVLA cancels your tax for an accepted reason - this includes if your vehicle has been:
Sold or transferred
Declared off the road with a Statutory Off Road Notification (SORN)
Written off by your insurer
Scrapped
Stolen
Permanently exported from the UK
Registered as exempt from vehicle tax
If you're simply not using your vehicle for a while, you need to make a SORN and keep it off public roads before you can stop taxing it.
How do I get a car tax refund?
In most cases, you tell DVLA why your vehicle tax should be cancelled and any refund you're owed is then sent automatically. The process usually goes like this:
Tell DVLA what has happened: Use the UK government online service for selling, transferring, declaring SORN, writing off, scrapping or exporting your vehicle
DVLA cancels your vehicle tax: If you pay by Direct Debit, the DVLA will normally cancel this automatically
DVLA calculates your refund: You'll be refunded for any complete months of tax remaining
Your refund is sent by cheque: It goes to the name and address shown on the vehicle's V5C log book
Tell DVLA as soon as possible - your refund is calculated from the date it receives your information, rather than an earlier date such as when you stopped using or sold the vehicle.
Do I need to cancel my vehicle-tax Direct Debit?
No, not when your tax is being cancelled because of a qualifying change - the DVLA normally cancels your Direct Debit automatically after you tell it what has happened to the vehicle.
Cancelling the Direct Debit with your bank is not the same as telling the DVLA that your vehicle tax should end.
How much car tax will I get back?
You'll get a refund for complete months of vehicle tax remaining from the date the DVLA receives your information - you won't be refunded for part of a month. For example, if DVLA receives your notification halfway through August, your refund would normally be based on the complete months remaining from September onwards.
Your refund won't include:
Credit card fees
The 5% surcharge on some Direct Debit payments
The 10% surcharge on a single six-month payment
Will I get the first year's vehicle tax back?
There are special rules if your refund relates to the first tax payment on a newly registered vehicle. The DVLA bases the refund on whichever is lower - either the first tax payment made when the vehicle was registered, or the rate that applies from the second tax payment onwards.
What information will I need to cancel my car tax?
The information you need depends on why your vehicle tax is being cancelled.
Your circumstances | Information you may need |
|---|---|
You've sold or transferred the car | Your V5C log book and the new keeper or motor trader's details |
You've declared it SORN | Your V5C or vehicle-tax reminder details |
Your insurer has written it off | Your vehicle and V5C details, plus information about your insurer |
You've scrapped it | Your V5C details and information about the authorised treatment facility |
The exact process will depend on what has happened to the vehicle, so use the right government service rather than sending the DVLA a general refund request.
How long does a car tax refund take?
The DVLA says to contact it if your refund cheque has not arrived after eight weeks. Your refund is normally sent by cheque rather than being returned to the bank account or card you used to pay the vehicle tax - the cheque is sent to the name and address shown on your V5C log book, so make sure those details are correct.
What should I do if my car tax refund hasn't arrived?
Contact the DVLA if you have not received your refund cheque after eight weeks for postal applications, six weeks for telephone or online applications, and four weeks for SORN confirmation by telephone. Before contacting it, check that:
Enough time has passed
The name and address on your V5C are correct
You've properly told the DVLA what has happened to your vehicle
You can contact the DVLA by webchat, WhatsApp, phone, email, or post.
What if my refund cheque is in the wrong name?
You shuold the cheque to the DVLA and tell it the correct name - the UK government website advises contacting the DVLA if a replacement cheque has not arrived after four weeks.
What should I do about car insurance after selling or replacing my car?
If you've sold, scrapped or replaced your vehicle, contact your insurer to tell them about the change. Depending on your circumstances, you may need to cancel your existing policy or update it to cover another vehicle.
If you need a new policy, MoneySuperMarket can help you compare car insurance quotes from different providers by the overall price, level of cover you get and excess you'll need to pay when you claim.
Car tax refund FAQs
Can I get a car tax refund if I make a SORN?
Yes, if you declare your vehicle off road with a SORN, the DVLA cancels the vehicle tax and refunds any complete months remaining. The vehicle must then be kept off public roads.
Do I get a car tax refund when I sell my car?
Yes, if there are full months of vehicle tax remaining - you should tell the DVLA as soon as you sell or transfer the vehicle. Your tax will be cancelled and any qualifying refund will be calculated from when the DVLA receives the information.
The buyer must then arrange their own vehicle tax.
Can I transfer my car tax to another vehicle?
No, when you sell or transfer a vehicle, its existing vehicle tax is cancelled rather than transferred to the buyer or another car. You can receive a refund for any qualifying full months remaining and will need to tax your new vehicle separately.
What happens to my car tax if my vehicle is stolen?
Tell the police and the DVLA if your vehicle is stolen, then follow the standard stolen-vehicle process with your insurer. The tax-refund procedure can differ in some circumstances, particularly if the vehicle has a personalised registration number you want to keep.
Where the refund is automatic, the DVLA refunds any full months remaining from the date it receives your information.
What happens to my car tax if my car is written off?
Tell the DVLA if your insurer writes off the vehicle. Once the relevant change has been recorded, your vehicle tax can be cancelled and any qualifying full months refunded.
Can I get a refund on my car insurance too?
Possibly, but car insurance refunds are separate from vehicle-tax refunds. If you cancel your car insurance before the end of the policy, you may receive some money back depending on your insurer's terms, how long the policy has been active and any cancellation fees.
Be sure to contact your insurer before cancelling your policy.
Author
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
