How Do I Cancel My Road Tax & Get a Refund?
Ellie Dyer-Brown, 4 months ago
5 min read
- Car ownership
FixMyCar explains how to cancel your road tax and get a refund.
The official name for road tax is Vehicle Excise Duty (VED). Most vehicles have to pay VED annually - but what happens if you sell your car or transfer ownership when you’ve already paid for a full year of road tax?
You don’t need to worry about losing money. This guide explains the process of cancelling your road tax and getting a refund.
Contents
Reasons for cancelling road tax
Why do you need road tax?
VED - which also goes by the name ‘road tax’ or ‘car tax’ - has a long history that can be traced back to the taxation of Hackney carriages in the 17th century. However, it was introduced formally in 1973.
Road tax is an annual levy imposed on vehicles that use public roads by the Driver and Vehicle Licencing Authority (DVLA). The money goes into the government’s annual spending budget for various things, including funding local projects and improving infrastructure.
You can read more about road tax, including how much it costs and how to pay it, in this guide.
Drivers in the UK must pay road tax to be legally allowed to drive on public roads.
If you’re caught using an untaxed vehicle, the DVLA will fine you £80, halved to £40 if you pay within a specific timeframe. But if you are caught driving an untaxed vehicle in a public area, the fixed penalty notice you receive could rise to £1,000, and your car might be seized.
Reasons for cancelling road tax
Road tax can be a significant expense for drivers. There may be some situations where you’re entitled to cancel your road tax and receive a refund for outstanding cover - here are the seven valid reasons for cancelling laid out by the DVLA.
You no longer own your car. If you’ve sold or transferred your vehicle to someone else, you’re no longer responsible for taxing it.
You don’t use your car on public roads. Vehicles kept on private property and not used on public roads don’t have to pay road tax - but they must have a valid Statutory Off Road Notification (SORN).
Your car has been scrapped. Vehicles scrapped at an Authorised Treatment Authority (ATA) no longer need to pay road tax.
Your car has been written off. You must notify the DVLA if your insurer has written off your vehicle.
You’ve exported your car. You don’t have to pay if you no longer use your vehicle on UK roads.
Your car has been stolen. In this situation, you must notify the police, DVLA, and your insurance provider.
Important note: If none of the above applies to you, you won’t be able to cancel your road tax and get a refund.
How to cancel your road tax
You’ll first need to inform the DVLA about which of the above situations applies to you. For instance, if you’ve sold your car.
You’ll then need to provide the following information:
Your name, postcode and address
A payment method
A valid V5C logbook confirming you are the vehicle’s registered keeper
Step-by-step
1. Check when your road tax runs out
You can do this on the DVLA website or by looking in your V5C logbook.
2. Complete a V11 form
Find this form online or at your local Post Office branch.
3. Submit your V11 form
Submitting a V11 can be done online through the Government website or by post.
4. Wait for confirmation
The DVLA will confirm when they have received your request.
How much will your tax refund be?
The DVLA will automatically cancel direct debit payments at your request. When the cancellation has been confirmed, you’ll be issued a refund cheque for the months left on your road tax. If you cancel your road tax after six and a half months, you’ll get five months back.
Refunds are calculated from the date the DVLA received your request. As such, it’s impossible to say how much it will be without knowing these details.
Refund payment method
The cheque will be sent to the name and address on your V5C logbook - money won’t be returned directly to your bank account. The cheque should arrive within six to eight weeks; if you haven’t received it in this timeframe, contact the DVLA.
If the check arrives with the incorrect name on it, send it back with the correct name to this address:
Refund Section, DVLA, Swansea, SA99 1AL
What to do if you don’t receive your tax refund
The best thing to do is contact the DVLA directly via phone or email.
Phone
Call the DVLA on 0300 790 6802.
Lines are open Monday to Friday from 8pm to 7pm, and on Saturdays from 8am to 2pm. It costs 10p per minute for a landline and 40p per minute for a mobile.
Use the DVLA’s dedicated email service on the Government website. Select the email for ‘Vehicle Enquiries’ from the list of options.
Looking for affordable car repairs or maintenance? FixMyCar can help you find the right garage at the right price.
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Written by Ellie
Ellie is FixMyCar's Content Writer. She has over three years of experience writing about cars and regularly collaborates with automotive experts to provide trustworthy advice for drivers in a language they understand. Her work has been featured in Yahoo! Finance, iNews, The Daily Express and The Sun. She has a BA in English literature and an MA in creative writing from Durham University. Outside of work, Ellie follows F1 and eagerly awaits Ferrari's next era of dominance in the sport. She drives a Suzuki Swift.