How do I get a refund on my car tax?
Key takeaways
You can only cancel car tax by contacting the Driver and Vehicle Licensing Agency (DVLA)
Accepted reasons for cancelling car tax include the vehicle being sold, stolen, written off, scrapped, exported or declared off-road
The DVLA will cancel your direct debit or send a refund cheque to the registered keeper’s address in your car log book within 6-8 weeks
What is car tax?
Car tax, also known as road tax or Vehicle Excise Duty (VED), is a legal requirement for driving on UK public roads. The VED amount depends on your vehicle's:
CO2 emissions
Fuel type
First registration date
Most vehicle owners must pay car tax each year. You can pay annually, bi-annually, or in monthly instalments.
Am I eligible for a car tax refund?
You will probably be eligible for a car tax refund if you have:
Sold or transferred your vehicle
Declared your vehicle off the road (known as a Statutory Off Road Notification or SORN)
Had your vehicle stolen or written off
Scrapped your vehicle
Exported your vehicle
Registered your vehicle as tax-exempt
📣 Did you know? The current average value of a scrap car is £252, according to the CarTakeBack Scrap Car Price Update.
Can I get a car tax refund if I'm no longer driving my car?
Yes, if you still own your vehicle but you are no longer driving it you can have your car tax refunded.
You must apply for a Statutory Off Road Notification (SORN) from the DVLA and the vehicle must be parked on private land. You cannot declare a vehicle off-road if it is kept in the street, even if nobody is driving it.
How do I cancel car tax?
You can only cancel car tax by contacting the Driver and Vehicle Licensing Agency (DVLA). The quickest way to do this is on GOV.UK
You should do this as soon as possible because the DVLA only calculates your refund from the date you inform them and not, for example, the date you sold your vehicle.
How do I get a refund on my car tax?
The step-by-step process to get a refund on your car tax is:
Step one: Inform the DVLA of the reason why you no longer need to pay vehicle tax. The easiest way to do this is via the GOV.UK website. You can also phone the DVLA on 0300 790 6802
Step two: Once the DVLA is informed, they will automatically cancel your future direct debit payments, if you have a direct debit set up, or send you a cheque with your refund. The refund will be calculated from the date DVLA gets your information. The cheque will be sent to the name and address of the registered keeper in the V5C vehicle log book
Step three: You should receive your refund within 6-8 weeks if you applied by phone or online or within 8 weeks if you applied by post. If you haven’t received your vehicle tax refund cheque after 8 weeks you should contact the DVLA
Step four: You will only be refunded for the number of full months left on your vehicle tax. You will not be refunded for any credit card or surcharge fees
What documents do I need to give the DVLA when I cancel my car tax?
The documents you need to give the DVLA will depend on why you are cancelling your car tax:
You’ve sold your car
You will need your vehicle log book (V5C). If you do not have this you'll need to send the DVLA a letter with your name and address, the vehicle registration number, the car make and model, the exact date of sale and the name and address of the new keeper or motor trader
Your car has been written off
You will need to provide the DVLA with your insurance company's details, as well as your vehicle registration number and the 11-digit reference number from the yellow ‘sell, transfer or part-exchange your vehicle to the motor trade’ section of your V5C log book
Your car has been stolen
If you receive a pay out from your insurance company, you must tell the DVLA your car has been sold to the insurance company
You’ve scrapped your car
You’ll need to give the DVLA the 11 digit reference number from your vehicle log book (V5C) and the authorised treatment facility’s (scrapyard’s) details. If you don’t have your log book you’ll need to send the DVLA a letter with your name and address, the vehicle registration number, the car make and model, the exact date of sale and the name and address of the scrapyard
Will I be refunded for the first tax payment on the vehicle?
If your refund relates to the first tax payment on a newly registered vehicle, the amount you receive from the DVLA will be based on whichever is lower of:
The first tax payment when you registered the vehicle
The rate for the second tax payment onwards
What should I do if my car tax refund doesn’t arrive?
If you don’t receive your car tax refund cheque from the DVLA after 8 weeks you should contact the DVLA:
By webchat: From Monday to Friday, 8am-7pm or Saturdays, 8am-2pm
By phone: On 0300 790 6802 from Monday to Friday, 8am-7pm or Saturdays, 8am-2pm
By post: Vehicle Customer Services, DVLA, Swansea SA99 1AR
What should I do if my car tax refund cheque is wrong?
If your car tax refund cheque is in the wrong name, return your refund cheque to the DVLA and tell them the correct name. Write to: Refund Section, DVLA, Swansea SA99 1AL
If you haven’t received your replacement cheque after 4 weeks you should contact the DVLA:
By webchat: From Monday to Friday, 8am-7pm or Saturdays, 8am-2pm
By phone: On 0300 790 6802 from Monday to Friday, 8am-7pm or Saturdays, 8am-2pm
By post: Vehicle Customer Services, DVLA, Swansea SA99 1AR
Can I get a refund on my car insurance?
Yes, you will usually get some money refunded if you cancel your car insurance midway through your policy. However, some insurers will charge you admin fees for doing this.
Contact your car insurance provider to cancel your car insurance.
Author
Sarah Tooze
Car & Van Insurance Expert
Sarah Tooze has been a motoring journalist for more than 15 years, specialising in company cars and vans, and has won a number of awards during her career, including the Newspress ‘Automotive...
