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How do I get a refund on my car tax?

Saarrah Mussa
Written by  Saarrah Mussa
Beth Leslie
Reviewed by  Beth Leslie
5 min read
Updated: 10 Jul 2025

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 or declared off-road

  • The DVLA will send a refund cheque to the address on your car logbook withing 6-8 weeks

Man on computer

What is car tax?

Car tax, officially known as Vehicle Excise Duty (VED), is a legal requirement for driving on UK public roads. The VED amount depends on the vehicle's CO2 emissions, fuel type, and registration date.

Most vehicle owners must pay car tax each year. You can pay in annual, bi-annual, or monthly installments.

Why might I be eligible for a refund on car tax?

You will probably be eligible for a car tax refund if you have:

  • sold or transferred your vehicle

  • declared your vehicle off the road

  • had your vehicle stolen or written off

  • register your vehicle as tax-exempt

Can I get a car tax refund if I'm no longer driving my car?

Yes. If you still own your vehicle but 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).

How do I claim for a car tax refund?

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.

Once the DVLA is informed, they will automatically cancel your direct debit, if you have one, and send you a cheque with your refund. The cheque will be sent to the name and address on the vehicle log book. It usually takes 6-8 weeks to receive your refund.

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 documentation do I need to give the DVLA when I cancel my car tax?

The DVLA will usually ask your for your vehicle log book (V5C). If you do not have this you'll need to send the DVLA a letter with details about the car and the situation.

If your car is written off or stolen, you will need to provide the DVLA with your insurance company's details.

If your car is scrapped you'll need Certificate of Destruction from the scrapyard.

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.

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