End of paper tax discs cost £65m

Lost revenue from car drivers not paying vehicle excise duty (VED) could have trebled since the abolition of the paper tax disc, official figures show.

Data published by the Department for Transport (DfT) shows that lost revenue for cars and light goods vehicles soared from £32million in 2013-14 to as much as £97million in 2017-18.

This could be due to the effect of major changes to the vehicle licensing system in October 2014 including the scrapping of the paper disc, the DfT said.

The government said at the time the decision would eventually save the DVLA around £7million a year.

Steve Gooding, director of motoring research charity the RAC Foundation, said: “From 2020 all proceeds from VED will go into a ring-fenced fund to help improve our major roads.

“While no one likes forking out for taxes, at least the proceeds of this one will be spent benefiting those who pay it.”

Another change the DfT believes may have contributed to the increase in lost revenue is banning the transfer of tax when a vehicle is sold.

A vehicle’s previous owner is now refunded any full months of remaining tax, and the buyer must arrange tax immediately.

AA head of roads policy Jack Cousens said: “It seems that a significant

“More than 98% of all vehicles on the road are correctly taxed”

number of drivers are still unaware that, when you buy a used car, the new owner must tax the vehicle before driving it away.”

DVLA chief executive Oliver Morley said: “More than 98% of all vehicles on the road are correctly taxed.

“We are cracking down on those who break the law by driving an untaxed vehicle.”