WALTON-ON-THAMES, England, October 30, 2014 /PRNewswire/ --
The nationwide car servicing and repairs specialist Service4Service has recently discussed the pros and cons of the abolishment of the paper tax disc. As the paper tax disc has been used since 1st January 1921 this is a huge change for motorists who as of 1st October 2014 are no longer required to display them. Instead, the DVLA will monitor all road tax payments using an electronic database which motorists will also be able to use to check their payments.
Under the new scheme motorists now have the ability to pay their annual, bi-annual or monthly road tax payments via Direct Debit. This new system should make life easier for motorists however the Direct Debit system does have a 5% surcharge on top of the full price for bi-annual and monthly tax payments which may influence motorists to pay the annual fee. The good news is that this is half of what the DVLA used to charge for bi-annual payments, meaning that many motorists could end up saving money.
If you decide not to pay your road tax via Direct Debit then the DVLA will continue to send you a postal reminder of when your tax disc needs to be renewed; however it may be an idea to check that you will still receive these reminders on the gov.uk website. The postal reminder will include a reference number and guidance on how to pay your road tax quickly and easily.
Unfortunately, there are some issues with the new road tax system, such as the fact that a large percentage of the public are unclear as to how it works. Furthermore, even though the DVLA published relevant information on their website it crashed on the day the new road tax system went into effect which didn't help matters!
Another disadvantage of the abolishment of the paper tax disc is that people purchasing a car can no longer take advantage of any remaining tax on a vehicle. Tax now applies to the person rather than the car, meaning if you sell your car and it still has any full month's worth of tax remaining you will receive a refund.
As a consumer, if you purchase a new vehicle you can no longer just drive away without any worry. You must instead purchase road tax before pulling away via the DVLA's website or by phone which is available 24/7.
Julian Kimber, Director of Service4Service, said: "There has been a lot of confusion surrounding the new road tax system because it is such a big change, but as soon as people get used to the change it will make everyone's lives a lot easier.
Service4Service provides low-cost services and repairs to motorists across the UK. The company has established hundreds of service centres across the country and offers a range of services including fleets servicing, MOTs and bodywork.